Consequences of not registering your trademark in China

Trademark in China is registered on a “first to file” basis. The logo is assigned to the person who first applies for registration of the trademark. Whether you export to or import from China, make sure you register your trademark to avoid problems.

Who should register a trademark in China?

You should register your name and logo when you buy goods in China. Then, the logo can be affixed on your products or the package.

Registrations should also be considered when you decide to sell goods in China. That way, you can be sure that only you have the right to use the logo throughout China.

What happens if you do not register your trademark in China

There are many consequences of not registering a trademark in China. Often there are situations when it’s not that easy to get your logo back. Certainly, you will need the help of qualified lawyers. However, lawsuits can be avoided if you register your logo/name before exporting or importing.

The right to detain goods in China – confiscation

If you manufacture your goods in China, it would be wise to register your trademark/name. Otherwise, unpleasant situations may occur, like losing rights to your goods. If you do not register your logo, someone else can do it. A third party can hold unregistered marks of companies producing in China (importers). After trademark infringement, there are often situations where the person to whom the logo is actually registered offers the company to buy their own products.

When a third party takes over a trademark, it has all rights to detain goods at the border. They have the right because they own the logo. It is worth considering that importers already paid for the product when they are at the border (e.g. in the port), which can lead to considerable material damage.

Selling unregistered goods on e-commerce websites

When the trademark has not been registered, it very often happens that the products are listed on Chinese e-commerce platforms. As for a service such as Alibaba, registering a trademark in Europe or the United States should be enough to submit a request to remove the product. However, when these products appear on Taobao or 1688.com, the situation is much worse. Having a trademark registered in China is necessary in this case.

Not registering a trademark in China may lead to a situation when someone is selling your products worldwide on e-commerce websites.

Signing a contract with a Chinese distributor

When you decide to export goods to China, you may fall victim to scams. Before you send your products to China, it’s worth having a registered trademark there. A trustworthy distributor will remind you about it and insist on registration. However, you can also have to deal with scammers that register the trademark in their name or the name of a friend even without telling you.

Not registering your logo can lead to trademark theft.

Losing rights to sell goods in China

The Chinese do not recognize the customary right to own a trademark and have little idea about commonly known brands. If you don’t register the trademark, you can be sure that someone will do it and will take your right to use the logo in China. Later you can be accused of violating “someone’s” trademark and lose the opportunity to sell our products in China.

Problems with winning lawsuits

Until you register your trademark in China, you do not have any rights to it. As a result, accusing a Chinese company of trademark infringement is often a lost cause. At the moment, when you do not have a registered trademark in China, there is no base for accusations. There are many situations when lawyers specializing in copyright protection find out in court that their clients have not registered trademarks in China. Such cases are really hard to win and usually do not end well.

Register your trademark in China to avoid potential lawsuits. Winning a case in court is often impossible.

Trademarks market

There is a special online trademark market in China. The platform is associated with the China Technology Exchange and operates with the approval of the State Council. If you neglect to register your trademark in China, it can be found on this page. If no one has bought the logo, the matter is a bit simpler. However, it should be remembered that according to China law, you do not have any rights to this trademark. If someone had already bought a logo from this site, the case might be more complicated. You have to obtain evidence that the logo was used unauthorized so that it can give rise to a dispute.

Not registering your logo may lead to a situation where your trademark will appear on a website specifically designed for the sale of trademarks. Registration of the logo will save time that you would spend on initiating disputes and looking for the evidence needed to win the case.

Problems with registration

In 2009, a well-known trademark infringement case took place in China. A European company has been sued for about 4,5 million euros. The company used its trademark all over the world and had plans to register the logo in China as well. However, in 2003 it turned out that their logo was already registered by someone else. One of the companies in Shenzhen used the mark and had stores selling similar products. The trademark application made by the original owners of the logo was rejected. Eventually, the European company decided to change its brand and stopped using the existing trademark.

Register your trademark and save money

Many companies, both European and Chinese, assume that the costs of registering trademarks in individual classes are high. They believe that it is better not to register the logo. However, it turns out to be much more expensive than it might seem.

One of the examples is the company from Harbin that decided not to register the soy sauce brand “Zheng Yang He.” They wanted to save on the registration costs of the logo, but eventually, it turned out that the company had to pay 500 000 yuan to buy a trademark from someone who decided to register it.

Protect your brand and register your trademark in China!