Expert Discussion on Trademark Law Revision: Clarifying Rights Boundaries through Fair Use

WISECODE Take

Many business owners mistake any unauthorized trademark use on packaging as infringement. In fact, trademark rights aim to indicate source, not to grant absolute control over descriptive symbols. The discussion on the Chinese Trademark Law revision published on September 18, 2026, notes that Article 73 clarifies fair use boundaries. The third paragraph introduces statutory exemptions for nominative fair use, while expanding functional limitations to sound and motion. This benefits Taiwanese manufacturers of compatible products, allowing them to state compatibility if done honestly without causing confusion. To prevent competitors from exploiting compatibility for unfair free-riding, businesses can utilize trademark monitoring services to track market movements. Two actions are recommended. First, compatible product makers must use clear phrasing like "compatible with" and ensure the third-party mark is not more prominent than their own. Second, brand owners should review non-traditional marks to prevent loss of rights due to expanded functional limits. Just as defenders in sports cannot block fair off-ball movement, trademark protection cannot strip others of their right to state objective facts.