New Trademark Law Safeguards Brand Development, Regulates Order

WISECODE Take

This comprehensive revision of China's Trademark Law is not merely a technical legal adjustment; it fundamentally reshapes brand strategy and market order, aiming to shift from quantity to quality and fair competition. From a business management strategy perspective, brands are core intangible assets, with trademark regulations serving as their protective cornerstone. China's first comprehensive revision of its Trademark Law since its 1983 implementation, passed on June 26, 2026, directly addresses historical market chaos like squatting, hoarding, and infringement, recalibrating the legal framework for brand operations. For business owners, this revision's clear crackdown on acts like "squatting" and "hoarding" signals that brand competition in the Chinese market will become more rigorous and equitable. Malicious registrations based on a "first-to-file" mentality will face non-registration or legal liabilities. Furthermore, those using trademarks in a misleading manner may incur fines up to RMB 250,000 or revocation, creating better growth opportunities for genuine brand builders. First, enterprises should immediately review their trademark portfolio in China, ensuring all applications demonstrate genuine intent of use to avoid being deemed malicious hoarding and subsequently revoked. Second, enhance brand monitoring, especially as famous trademark protection now extends regardless of registration, actively tracking market dynamics to prevent infringement and misleading usage. A brand represents the accumulation of long-term corporate value, not a tool for short-term speculation. Zhidian offers expert consultation on China trademark portfolio strategies, helping businesses navigate these changes steadily.