As businesses resume operations after the Chinese New Year holiday, significant procedural changes in China’s trademark non-use cancellation process have come to light. The China National Intellectual Property Administration (CNIPA) has introduced stricter evidence requirements for applicants seeking to cancel a trademark for non-use. At Allasya IP, we are closely monitoring these developments, as they will impact both foreign and domestic brand owners navigating the Chinese IP landscape.
Key changes in practice
Traditionally, non-use cancellation was a relatively straightforward procedure. Applicants could submit a basic claim stating that a trademark had not been used for three consecutive years, and the burden of proof fell entirely on the trademark owner to demonstrate use.
This principle, known as the burden of proof inversion, meant that a simple allegation could force the registrant into a costly and time-consuming defense.
However, under the latest CNIPA rules, applicants must now provide preliminary investigation evidence showing that the trademark has not been used before a cancellation request is accepted. This marks a significant departure from past practice and places a higher evidentiary burden on those seeking to challenge a trademark registration.
What evidence must now be submitted?
CNIPA has introduced quantifiable standards for the evidence required in a non-use cancellation application. The key requirements include:
Investigation Report: Applicants must submit a report outlining their investigation into the alleged non-use of the trademark.
Search Evidence from at least three different platforms: The investigation must cover multiple sources, such as:
1. Search engines (e.g., Baidu, Bing, Sogou)
2. E-commerce platforms (e.g., Taobao, JD.com, Pinduoduo)
3. Social media (e.g., WeChat, Weibo, Xiaohongshu)
Screenshots from five consecutive search result pages: Each platform search must be documented with at least five pages of results, starting from the homepage, to demonstrate the absence of commercial use.
Registrant’s Business Status: Applicants must provide details on the trademark owner’s operational status, including business scope, activity records, and potential inactivity.
This raises the bar for non-use cancellation applications, making it more difficult for applicants to file speculative or abusive claims.
Why has CNIPA implemented these changes?
The tightening of non-use cancellation procedures stems from growing concerns over abusive cancellation practices and trademark hijacking strategies. CNIPA has received reports of certain trademarks being targeted with dozens of non-use cancellation requests, sometimes as a tactic to force owners into settlements.
By requiring applicants to submit more robust evidence, CNIPA aims to reduce malicious filings and ensure that non-use cancellation serves its intended purpose: clearing inactive trademarks from the registry while protecting legitimate brand owners from bad-faith challenges.
How will this impact IP owners?
For companies protecting their trademarks in China, these changes present both opportunities and challenges:
More Protection Against Abusive Cancellations: Brand owners now have greater assurance that their trademarks won’t be easily challenged by competitors or squatters without solid evidence.
Higher Costs for Legitimate Cancellation Efforts: If a company seeks to remove unused trademarks from the registry, they must now invest in more extensive investigations and legal support.
Greater Need for Strategic IP Management: With stricter evidentiary standards, companies should proactively monitor trademark use, maintain records of commercial activity, and be prepared to defend their registrations if challenged.
Navigating the New Landscape: Allasya’s Recommendations
At Allasya, we recommend that brand owners take a proactive approach to trademark management in China by:
Documenting Trademark Use: Regularly gather and archive evidence of trademark use, including product listings, marketing materials, invoices, and distribution agreements.
Monitoring Trademark Activity: Keep track of potential non-use cancellation risks by monitoring filings and enforcement trends in your industry.
Conducting Risk Assessments Before Filing Cancellations: Before initiating a non-use cancellation against another party, conduct a thorough investigation to ensure compliance with CNIPA’s new evidence standards.
Engaging Experienced Counsel: Given the evolving nature of China’s IP laws, partnering with experienced local legal experts is crucial to navigating these new requirements effectively.
Conclusion
China’s new non-use cancellation requirements mark a major shift in trademark enforcement, aimed at curbing bad-faith filings while reinforcing the importance of genuine commercial use. While this adds complexity for applicants seeking to challenge inactive trademarks, it also provides greater security for established brands looking to safeguard their IP rights.
Allasya remains committed to helping clients stay ahead of regulatory changes and protect their trademarks in China and Asia. If your business needs guidance on navigating these new rules, our team is ready to assist.
Need strategic advice on trademark protection in China? Contact Allasya today.