How to Avoid Trademark Squatting in China? This may be a common concern by foreign investors doing business in China. Trademark squatting is a form of intellectual property rights (IPR) infringement that is especially rampant in China. US firms are typically more vulnerable to trademark squatting in China, because unlike the US, China follows the “first to file” system rather than the “first to use”.
Trademark squatters exploit the difference among the legal systems and register international brands in China anticipating their entry China. Business leaders need to identify the right strategies to protect their trademark in China before entering the Chinese market. The following are some of the preventive strategies.
1. Early Registration
Due to the “first to file” system in China, the outcome of any trademark dispute primarily hinges on who registered it first in China. Hence, firms anticipating expansion into China should apply for registration at the earliest, particularly as the registration may take considerable time in some cases.
2. Registration with Chinese Translation
Registering your brand name as a trademark is more complex in China than in the West. This is because foreign companies often use Chinese transliterations of their original brand name to localize their product to China. In such cases, registering the English name alone is not sufficient and foreign firms must also register their trademarks under the appropriate Chinese transliteration.
Foreign firms operating in China should ideally invest in finding the right brand name to register their trademark by using a strategic combination of literal translation, phonetic transliteration, and descriptive adaptations. It is definitely advisable to engage the assistance of bilingual experts for this work.
3. Registrations in Multiple Classes
Although many foreign firms successfully register their trademarks in China before trademark squatters, they sometimes encounter problems when expanding their products and services. This is because squatters obtain subsequent registrations in other categories and sub-categories and hold firms to ransom by preventing them from expanding their business.
Therefore, companies should register under as many categories and sub-categories as financially feasible. Even after registering, firms should regularly monitor the trademark register for potential squatting or infringement.
4. Maintain Proper Records
Companies need to maintain all trademark related documents and other evidence in each office, including overseas offices, to challenge potential trademark squatters’ applications as well as facilitate renewal, cancellation, and alteration.
Brand building and promotion is an important element of corporate image. Good brand will bring about a number of clients which means more profits that you will gain. Tannet can help you file trademark registration, we can also help you make response to trademark refusal or opposition.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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