It is no secret that the process of successfully registering trademarks in China is filled with challenges due to an overwhelming number of existing, valid registered trademarks and large annual intake of new applications. The 2022 annual report of the China National Intellectual Property Administration (CNIPA) starkly highlights this issue, indicating the preliminary approval rate for trademark applications is a paltry 52%. This means that nearly half of all trademark applications face rejection. The barriers and implications of this reality are affecting numerous enterprises both within and outside of China. In response, there have been new developments regarding the suspension of Trademark Refusal Review cases and the pre-registration of administrative litigation. This is particularly important for legal professionals navigating the complex terrain of intellectual property laws and regulations in China.
According to the ongoing legal practices reported by IP focused firm Linda Liu & Partners, when a trademark application is rejected by the CNIPA, the relevant party can apply for a review to reverse this decision. This process, known as a Trademark Refusal Review, can often result in a suspension of the case if further inspection or evidence collection is needed. However, the recent changes mean that the CNIPA will not often suspend these cases for many reasons, including re-examination and evidence collection. These changes intend to expedite the trademark registration procedure, potentially changing the landscape of the IP registration in China.
Alongside this, new rules have been introduced around the pre-registration of administrative litigation. If the CNIPA maintains their rejection following the review, parties are now required to pre-register the litigation for trademark refusal. The aim is to streamline the resolution process, and it has introduced new procedures and steps that enterprises must take to protect and assert their intellectual property rights.
These rule changes signify a significant shift in China’s management of intellectual property rights and could result in lowered barriers for enterprises seeking to register their trademarks in the country. The challenge now lies in understanding these new rules and adapting to these changes. Legal professionals working in the field should pay closer attention to the evolving landscape to better serve their clients and provide more effective, timely services in the competitive intellectual property arena.