By Xiaoxue Xiang
On November 14, Premier Li Qiang chaired a State Council executive meeting, during which the Draft Revision to the Trademark Law of the People’s Republic of China was discussed and approved in principle. The draft will now be submitted to the Standing Committee of the National People’s Congress for further review.
I. Key Interpretations of the Draft Revision to the Trademark Law of the PRC
1. Background and Core Objectives
This revision responds to pressing issues in current trademark practice, including malicious trademark squatting, “registering without use,” abuse of rights, and misconduct in the trademark agency industry. The goal is to improve the legal framework, strengthen trademark protection, regulate trademark application, use, and agency activities, optimize the business environment, and enhance the role of trademarks in encouraging innovation, supporting brand development, and promoting high‑quality economic and social growth.
2. Major Revision Directions (Core Content of the Draft)
- Strengthened Regulation of Malicious Registration: Clarifies specific circumstances constituting malicious registration, expands the scope for refusal and invalidation, and increases penalties to curb trademark hoarding and opportunistic filings.
- Improved Use Obligations and Non‑Use Cancellation System: Refines standards for determining trademark use, imposes stricter consequences for “registering without use,” and optimizes the three‑year non‑use cancellation procedure to promote efficient use of trademark resources.
- Enhanced Penalties for Infringement: Raises the statutory cap on damages, improves the application of punitive damages, and clarifies methods for calculating losses, thereby better protecting trademark owners’ rights.
- Regulation of Trademark Agency Conduct: Establishes integrity records and blacklist systems for trademark agencies, strengthens oversight of malicious filings and false advertising by agencies, and reinforces their legal responsibilities.
- Adaptation to New Business Models: Improves rules for trademark use and infringement determination in emerging contexts such as e‑commerce and livestreaming, clarifies joint liability for online service providers, and fills gaps in legal application.
3. Significance and Impact of the Revision
The draft’s approval and subsequent review will further improve China’s trademark legal system and provide stronger legal safeguards for trademark protection.
- For enterprises: it will reduce enforcement costs and encourage greater investment in branding and innovation.
- For the market: it will curb unfair competition and maintain a fair and orderly business environment.
- For the industry: it will promote standardized development of the trademark agency sector, improve the quality of trademark applications and registrations, and support the building of a strong national brand ecosystem.
The measures adopted at this meeting balance development and public welfare, innovation and regulation. While infrastructure development and consumption‑driven policies stimulate market vitality, revisions to the Trademark Law and Funeral Administration Regulations strengthen institutional safeguards.
As a key initiative in the field of intellectual property protection, the Trademark Law revision will work in synergy with other policies to advance innovation‑driven development, support the construction of a unified national market, and enhance national governance capacity and sustainable development.
II. Summary of Other Key Decisions from the Meeting
The meeting addressed work arrangements in areas such as strategic infrastructure development, consumption upgrading, and education and talent cultivation, and formally adopted the Draft Revision to the Funeral Administration Regulations.
- Strategic Infrastructure and Security Capacity Building: Focus on major projects under the upcoming “15th Five-Year Plan,” attract private capital through ultra‑long‑term loans and policy‑based financial instruments, and strengthen quality and safety supervision.
- Consumer Goods Market and Consumption Upgrading: Promote dual upgrading of consumption and industry, encourage enterprises to expand the supply of high‑quality consumer goods, and develop flexible manufacturing to meet personalized demand.
- Education and Talent Development Strategy: Improve integrated mechanisms for advancing education, science and technology, and talent development; expand high‑quality educational resources; and cultivate innovative professional talent.
- Revision of Funeral Administration Regulations: The Draft Revision to the Funeral Administration Regulations was formally adopted, advancing modernization of public service governance.