How to Get Back My Trademark in China?

More than once, when our clients finally decided to register their trademark in China, they found it’s been registered by someone else already!

Can I claim it back by showing that we have owned and used the trademark for hundred years in our home country? They asked.

Unfortunately, the answer is no, they can’t.

China apply the “first-to-file” system in trademark application. It means the first applicant of a trademark will get it, despite the fact that someone else has used it for many years.

Is there any way to get it back?

It depends. If the current owner doesn’t use it at all, you probably have two options to get the brand.

1. Buying back the Trademark in China 

You may try to buy it back, because someone register other people’s trademark to sell it someday to make money.  That’s called “malicious squatting”. The price could vary from five digital till seven digital.

The good news is that the China Trademark Office (CTMO) in Beijing has adopted  stronger action to curb squatting in trademark registration, such as Non-use cancellation .  So, you have another option:

2. Filing for Non-use cancellation

You may choose to file for Non-use cancellation based on the fact that the current owner didn’t use it for three consecutive years.  CTMO will ask the current owner to provide evidence to prove that they are using the trademark. Otherwise, CTMO will cancel the brand in nine months.

However, usually it’s hard to tell if the current owner has used the trademark actually before we file for Non-use cancellation. 

We will check the following aspects to help us to decide:

  1. If the current owner is individual, the chance for him/her to use it properly is less;
  2. If certain qualification or permission is needed to sell the commodity the trademark is applied to, or such business is not included in the businesses listed in the business license of current owner (if the owner is an entity);

The above matters will help us to decide if we can make it.

But cancelling the brand can’t guarantee you definitely could get the trademark. You have to be the first applicant to get it.

Timing is very important at this point.

Usually, our routine is:

  1. Apply for the trademark, and at the same time, file for Non-use cancellation.
  2. The application would be rejected because it has been registered already.  Let’s continue. Apply for review of the application with the Trademark and Adjudication Board (TRAB).
  3. If the TMO hasn’t cancelled the trademark, apply for suspension of the review until the decision of Non-use cancelling is made.

In this way, we can make sure our client is the first applicant once the Non-use cancellation is done.

However, the Non-use cancellation procedure could last more than three or four years or even longer, if the current owner decides go through whole proceedings.  Not to mention the fee involved.

You can see, buy it back or file for Non-use cancellation both are time consuming and expensive.

So our repeated suggestion is: if you want to register your trademark in China, do it now!For more info, you may check our post: Trademark Registration in China – Procedure or Two Ways of Trademark Registration in China

Useful link:

TRADEMARK OFFICE OF NATIONAL INTELLECTUAL PROPERTY ADMINISTRATION, PRC

Tips on Preparing OEM Contract with China Factory

Signing an OEM contract is one of the ways to protect yourself when you source in China.

But how to do it properly is a big question, after all, the language, legal system and culture, etc.is totally different.

The suggestion I want to offer is:

1. Find an English-speaking Chinese lawyer to help you.

Benefit: they know what happens in practice and they are aware of the newest change in court if finally a lawsuit is inevitable. They will give more practical suggestions that any overseas lawyer can’t offer.

In one word, their job ensure the contract’s enforceability.

2. Selecting China as the jurisdiction to make sure the award being executed.

Why?Because China court barely enforce award formed in other jurisdiction.

Choose to file lawsuit in China court and file for a rule to freeze defendant’s assets will make sure the award in favor of you could be executed. For more information, you may check: Foreign Judgment-Enforceable in China?

3. Choose Chinese as the main language.

Only Chinese is the official language allowed to be used in China court, any paper in other language need to be translated into Chinese firstly.

So it’s better to prepare a bilingual contract and say: if there is any contradiction between this two version, the Chinese version will prevail.

In this way, you could make sure it’s the version your lawyer prepared to be used in the court, not a translation copy provided by any translator assigned by the court.

4. Choose China law as the applicable law.

Though the parties are allowed to choose the applicable law, but there are actually no detailed rules about how to use other’s country’s law in China court. In another word, it’s hard to do.

5. Specify liabilities for breach of contracts clearly and reasonably.

It’s very important to make sure the China factory understand the consequence if they breach the contract is very important.

Consult with your lawyer to set a suitable liability. If it’s too light, it’s not enough to warn the factory; if it’s too heavy, the other party will claim it to be invalid and the judge would support that.

But the court will stick to it, if the liabilities is reasonable.

Anything else?

Useful link:

MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA