Trademark Law of the People’s Republic of China (2019 Amendment)

This Law is enacted to strengthen trademark administration, protect the exclusive right to use trademarks, and encourage producers and business operators to guarantee the quality of their goods and services and maintain the reputation of their trademarks, so as to protect the interests of consumers, producers, and business operators and to promote the development of the socialist market economy.

The Trademark Office of the administrative department for industry and commerce under the State Council is in charge of trademark registration and administration throughout the country.

The administrative department for industry and commerce under the State Council establishes a Trademark Review and Adjudication Board, which is responsible for handling trademark disputes.

A trademark registered with the approval of the Trademark Office is a registered trademark, including goods trademarks, service trademarks, collective marks, and certification marks. The registrant enjoys the exclusive right to use the trademark, which is protected by law.

For the purposes of this Law, a collective mark means a sign registered in the name of a group, association, or other organization for use by its members in commercial activities to indicate their membership in the organization.

For the purposes of this Law, a certification mark means a sign that is controlled by an organization capable of supervising certain goods or services and used by entities or individuals outside that organization on their goods or services to certify the place of origin, raw materials, method of manufacture, quality, or other specific characteristics of those goods or services.

Special matters concerning the registration and administration of collective marks and certification marks are prescribed by the administrative department for industry and commerce under the State Council.

A natural person, legal person, or other organization that needs to obtain the exclusive right to use a trademark for its goods or services in production and business activities shall apply to the Trademark Office for trademark registration. A bad-faith application for trademark registration that is not intended for use shall be rejected.

The provisions of this Law concerning goods trademarks apply to service trademarks.

Two or more natural persons, legal persons, or other organizations may jointly apply to the Trademark Office to register the same trademark, and jointly enjoy and exercise the exclusive right to use it.

For goods that laws or administrative regulations require to bear a registered trademark, an application for trademark registration must be filed; such goods shall not be sold on the market before registration is approved.

The principle of good faith shall be followed in applying for the registration of and using trademarks.

A trademark user shall be responsible for the quality of the goods on which it uses the trademark. The administrative departments for industry and commerce at all levels shall, through trademark administration, stop acts that deceive consumers.

Any sign that can distinguish the goods of a natural person, legal person, or other organization from those of others, including words, devices, letters, numerals, three-dimensional signs, color combinations, sounds, and combinations of these elements, may be applied for registration as a trademark.

A trademark applied for registration shall be distinctive and easy to identify, and shall not conflict with legitimate rights previously obtained by others.

A trademark registrant has the right to indicate the words “registered trademark” or the registration symbol.

The following signs shall not be used as trademarks:

(1) signs identical or similar to the name, national flag, national emblem, national anthem, military flag, military emblem, military anthem, or medals of the People’s Republic of China, and signs identical to the names or emblems of central state organs, the names of the specific places where they are located, or the names or images of their landmark buildings;

(2) signs identical or similar to the name, national flag, national emblem, or military flag of a foreign country, unless the government of that country consents;

(3) signs identical or similar to the name, flag, or emblem of an intergovernmental international organization, unless the organization consents or the sign is unlikely to mislead the public;

(4) signs identical or similar to an official sign or inspection stamp indicating control or guarantee, unless authorized;

(5) signs identical or similar to the name or emblem of the “Red Cross” or the “Red Crescent”;

(6) signs that discriminate against any ethnic group;

(7) signs that are deceptive and likely to mislead the public about the quality or other characteristics or the place of origin of the goods;

(8) signs that are detrimental to socialist morals or customs or have other adverse effects.

Geographical names of administrative divisions at or above the county level, and foreign geographical names known to the public, shall not be used as trademarks, unless the geographical name has another meaning or forms part of a collective mark or certification mark. Registered trademarks that use geographical names remain valid.

The following signs shall not be registered as trademarks:

(1) signs consisting only of the generic name, device, or model of the goods;

(2) signs that only directly indicate the quality, main raw materials, function, use, weight, quantity, or other characteristics of the goods;

(3) other signs that lack distinctiveness.

A sign listed in the preceding paragraph may be registered as a trademark if it has acquired distinctiveness through use and is easy to identify.

Where a three-dimensional sign is applied for registration as a trademark, a shape that results only from the nature of the goods themselves, a shape of the goods necessary to obtain a technical effect, or a shape that gives the goods substantial value shall not be registered.

Where the holder of a trademark that is well known to the relevant public considers that its rights are being infringed, it may request protection of the trademark as a well-known trademark in accordance with this Law.

A trademark applied for registration for identical or similar goods that reproduces, imitates, or translates another party’s well-known trademark not registered in China and is likely to cause confusion shall not be registered, and its use shall be prohibited.

A trademark applied for registration for non-identical or dissimilar goods that reproduces, imitates, or translates another party’s well-known trademark registered in China, misleads the public, and may damage the interests of the registrant of the well-known trademark shall not be registered, and its use shall be prohibited.

A well-known trademark shall be recognized, at the request of a party, as a fact that needs to be determined in handling a case involving trademarks. The following factors shall be considered in recognizing a well-known trademark:

(1) the degree to which the relevant public knows the trademark;

(2) the duration of use of the trademark;

(3) the duration, extent, and geographical scope of any publicity for the trademark;

(4) records of protection of the trademark as a well-known trademark;

(5) other factors that make the trademark well known.

Where a party asserts rights under Article 13 of this Law during the examination of a trademark registration or the investigation and handling of a trademark violation by the administrative department for industry and commerce, the Trademark Office may determine whether the trademark is well known as needed for the examination or handling of the case.

Where a party asserts rights under Article 13 of this Law during the handling of a trademark dispute, the Trademark Review and Adjudication Board may determine whether the trademark is well known as needed for handling the case.

Where a party asserts rights under Article 13 of this Law during the trial of a civil or administrative trademark case, a people’s court designated by the Supreme People’s Court may determine whether the trademark is well known as needed for the trial.

Producers and business operators shall not use the words “well-known trademark” on goods, packaging, or containers of goods, or in advertising, exhibitions, or other commercial activities.

Where an agent or representative, without authorization, registers in its own name the trademark of its principal or of the party it represents, and the principal or represented party files an opposition, the trademark shall not be registered, and its use shall be prohibited.

Where a trademark applied for registration for identical or similar goods is identical or similar to an unregistered trademark previously used by another party, and the applicant, having a contractual, business, or other relationship with that party other than those specified in the preceding paragraph, clearly knows that the other party’s trademark exists, the trademark shall not be registered if that party files an opposition.

Where a trademark contains a geographical indication of goods that do not originate in the region the indication refers to, and it misleads the public, the trademark shall not be registered, and its use shall be prohibited; however, a trademark registered in good faith remains valid.

For the purposes of the preceding paragraph, a geographical indication means a sign indicating that goods originate in a certain region, where a given quality, reputation, or other characteristic of the goods is mainly determined by the natural or human factors of that region.

A foreign person or foreign enterprise applying for trademark registration in China shall do so in accordance with any agreement concluded between its country and the People’s Republic of China or any international treaty to which both are parties, or on the principle of reciprocity.

A party may apply for trademark registration or handle other trademark matters on its own, or may appoint a legally established trademark agency to do so.

A foreign person or foreign enterprise applying for trademark registration or handling other trademark matters in China shall appoint a legally established trademark agency.

A trademark agency shall follow the principle of good faith, comply with laws and administrative regulations, handle trademark registration applications or other trademark matters as entrusted by its principal, and keep confidential the principal’s trade secrets that it learns in the course of the agency work.

Where a trademark that a principal applies to register may fall under a circumstance in which registration is not permitted under this Law, the trademark agency shall clearly inform the principal.

A trademark agency shall not accept a commission where it knows or should know that the trademark the principal applies to register falls under Article 4, Article 15, or Article 32 of this Law.

A trademark agency shall not apply to register any trademark other than those for its agency services.

A trademark agency industry association shall strictly apply the membership conditions set out in its articles of association and discipline members that violate the rules of industry self-regulation. It shall promptly make public the members it admits and the disciplinary actions it takes against members.

International registration of trademarks follows the systems established by the relevant international treaties that the People’s Republic of China has concluded or acceded to. Specific measures are prescribed by the State Council.

An applicant for trademark registration shall file the application stating the classes and names of the goods on which the trademark is used, in accordance with the prescribed classification of goods.

An applicant may apply in a single application to register the same trademark for goods in multiple classes.

Applications for trademark registration and other related documents may be submitted in writing or as data messages.

Where the exclusive right to use a registered trademark is to be obtained for goods outside its approved scope of use, a separate application for registration shall be filed.

Where the sign of a registered trademark is to be changed, a new application for registration shall be filed.

Where an applicant, within six months from the date on which it first filed an application for trademark registration in a foreign country, files an application in China to register the same trademark for the same goods, it may enjoy a right of priority in accordance with any agreement concluded between that foreign country and China, any international treaty to which both are parties, or the principle of mutual recognition of priority.

An applicant claiming priority under the preceding paragraph shall submit a written declaration when filing the application and, within three months, submit a copy of the application documents filed for the first time. If no written declaration is made or the copy is not submitted within the time limit, priority is deemed not to have been claimed.

Where a trademark is first used on goods shown at an international exhibition sponsored or recognized by the Chinese government, the applicant may enjoy a right of priority within six months from the date on which the goods were exhibited.

An applicant claiming priority under the preceding paragraph shall submit a written declaration when filing the application and, within three months, submit supporting documents such as the name of the exhibition, evidence of the trademark’s use on the exhibited goods, and the date of the exhibition. If no written declaration is made or the supporting documents are not submitted within the time limit, priority is deemed not to have been claimed.

The matters declared and the materials provided for an application for trademark registration shall be true, accurate, and complete.

The Trademark Office shall complete the examination of a trademark applied for registration within nine months from the date on which it receives the application documents, and shall preliminarily approve and publish the trademark if it complies with the relevant provisions of this Law.

During examination, where the Trademark Office considers that the content of an application needs to be explained or amended, it may require the applicant to explain or amend it. If the applicant does not do so, this does not prevent the Trademark Office from making its examination decision.

Where a trademark applied for registration does not comply with the relevant provisions of this Law, or is identical or similar to a trademark of another party that has been registered or preliminarily approved for identical or similar goods, the Trademark Office shall reject the application and shall not publish it.

Where two or more applicants apply to register identical or similar trademarks for identical or similar goods, the trademark of the earlier application shall be preliminarily approved and published; where the applications are filed on the same day, the trademark used first shall be preliminarily approved and published, and the other applications shall be rejected and not published.

An application for trademark registration shall not prejudice another party’s existing prior rights, nor shall an applicant pre-emptively register by unfair means a trademark that another party has already used and that has a certain influence.

Within three months from the date of publication of a preliminarily approved trademark, a prior right holder or an interested party who considers that the trademark violates Article 13, paragraphs 2 and 3, Article 15, Article 16, paragraph 1, Article 30, Article 31, or Article 32 of this Law, or any person who considers that it violates Article 4, Article 10, Article 11, Article 12, or Article 19, paragraph 4 of this Law, may file an opposition with the Trademark Office. If no opposition is filed when the publication period expires, the registration shall be approved, a trademark registration certificate shall be issued, and the registration shall be published.

Where a trademark application is rejected and not published, the Trademark Office shall notify the applicant in writing. An applicant who disagrees may apply to the Trademark Review and Adjudication Board for review within fifteen days of receiving the notice. The Board shall make a decision within nine months of receiving the application and notify the applicant in writing; in special circumstances, this period may be extended by three months with the approval of the administrative department for industry and commerce under the State Council. A party who disagrees with the Board’s decision may bring a lawsuit in a people’s court within thirty days of receiving the notice.

Where an opposition is filed against a preliminarily approved and published trademark, the Trademark Office shall hear the facts and reasons stated by the opponent and the opposed party and, after investigation and verification, decide within twelve months from the expiry of the publication period whether to approve the registration, and notify the opponent and the opposed party in writing. In special circumstances, this period may be extended by six months with the approval of the administrative department for industry and commerce under the State Council.

Where the Trademark Office decides to approve the registration, it shall issue a trademark registration certificate and publish the registration. An opponent who disagrees may request the Trademark Review and Adjudication Board to declare the registered trademark invalid under Articles 44 and 45 of this Law.

Where the Trademark Office decides not to approve the registration and the opposed party disagrees, the opposed party may apply to the Trademark Review and Adjudication Board for review within fifteen days of receiving the notice. The Board shall make a review decision within twelve months of receiving the application and notify the opponent and the opposed party in writing; in special circumstances, this period may be extended by six months with the approval of the administrative department for industry and commerce under the State Council. An opposed party who disagrees with the Board’s decision may bring a lawsuit in a people’s court within thirty days of receiving the notice. The people’s court shall notify the opponent to take part in the proceedings as a third party.

During a review under the preceding paragraph, where the determination of the prior rights involved must be based on the outcome of another case being tried by a people’s court or handled by an administrative authority, the Trademark Review and Adjudication Board may suspend the review. The review shall resume once the cause of the suspension is removed.

Where, after the statutory time limit expires, a party has not applied for review of a decision of the Trademark Office to reject an application or not to approve a registration, or has not brought a lawsuit in a people’s court against a review decision of the Trademark Review and Adjudication Board, the decision to reject the application, the decision not to approve the registration, or the review decision takes effect.

Where a trademark is approved for registration after examination finds the opposition unfounded, the applicant obtains the exclusive right to use the trademark from the date on which the three-month period following its preliminary approval and publication expires. Between the expiry of the publication period and the decision to approve the registration, the registration has no retroactive effect on another party’s use of a sign identical or similar to the trademark on identical or similar goods; however, losses caused to the registrant by that user’s bad faith shall be compensated.

Applications for trademark registration and applications for trademark review shall be examined promptly.

An applicant or registrant who finds an obvious error in its trademark application documents or registration documents may apply for correction. The Trademark Office shall make the correction within the scope of its authority in accordance with the law and notify the party concerned.

The correction of errors referred to in the preceding paragraph does not involve the substantive content of the application documents or registration documents.

A registered trademark is valid for ten years from the date on which its registration is approved.

Where a registrant intends to continue using a registered trademark after its term expires, it shall complete the renewal formalities as prescribed within the twelve months before the term expires; if it cannot do so within that period, a grace period of six months may be granted. Each renewal is valid for ten years from the day after the previous term expires. If the renewal formalities have not been completed upon expiry, the registered trademark shall be deregistered.

The Trademark Office shall publish renewed registrations.

Where the registrant’s name or address or other registered particulars of a registered trademark need to be changed, an application for alteration shall be filed.

To assign a registered trademark, the assignor and the assignee shall sign an assignment agreement and jointly file an application with the Trademark Office. The assignee shall guarantee the quality of the goods on which the registered trademark is used.

When assigning a registered trademark, the registrant shall also assign any similar trademarks it has registered for the same goods and any identical or similar trademarks it has registered for similar goods.

The Trademark Office shall not approve an assignment that is likely to cause confusion or has other adverse effects, and shall notify the applicant in writing with the reasons.

An approved assignment of a registered trademark shall be published. The assignee enjoys the exclusive right to use the trademark from the date of publication.

A registrant may, by signing a trademark license contract, license another party to use its registered trademark. The licensor shall supervise the quality of the goods on which the licensee uses the registered trademark, and the licensee shall guarantee the quality of those goods.

A party licensed to use another party’s registered trademark must indicate the licensee’s name and the place of origin of the goods on the goods bearing the registered trademark.

A licensor shall file the license of its registered trademark with the Trademark Office for recordal, and the Trademark Office shall publish it. An unrecorded trademark license cannot be asserted against a bona fide third party.

Where a registered trademark violates Article 4, Article 10, Article 11, Article 12, or Article 19, paragraph 4 of this Law, or its registration was obtained by deception or other unfair means, the Trademark Office shall declare the registered trademark invalid; other entities or individuals may request the Trademark Review and Adjudication Board to declare it invalid.

A decision of the Trademark Office declaring a registered trademark invalid shall be notified to the parties in writing. A party who disagrees may apply to the Trademark Review and Adjudication Board for review within fifteen days of receiving the notice. The Board shall make a decision within nine months of receiving the application and notify the parties in writing; in special circumstances, this period may be extended by three months with the approval of the administrative department for industry and commerce under the State Council. A party who disagrees with the Board’s decision may bring a lawsuit in a people’s court within thirty days of receiving the notice.

Where another entity or individual requests the Trademark Review and Adjudication Board to declare a registered trademark invalid, the Board shall, after receiving the request, notify the parties concerned in writing and set a time limit for their response. The Board shall, within nine months of receiving the request, make a ruling to maintain the registered trademark or declare it invalid and notify the parties in writing; in special circumstances, this period may be extended by three months with the approval of the administrative department for industry and commerce under the State Council. A party who disagrees with the Board’s ruling may bring a lawsuit in a people’s court within thirty days of receiving the notice. The people’s court shall notify the opposing party in the ruling proceedings to take part in the lawsuit as a third party.

Where a registered trademark violates Article 13, paragraphs 2 and 3, Article 15, Article 16, paragraph 1, Article 30, Article 31, or Article 32 of this Law, a prior right holder or an interested party may, within five years from the date of registration, request the Trademark Review and Adjudication Board to declare the registered trademark invalid. For a registration made in bad faith, the owner of a well-known trademark is not subject to the five-year time limit.

After receiving a request to declare a registered trademark invalid, the Trademark Review and Adjudication Board shall notify the parties concerned in writing and set a time limit for their response. The Board shall, within twelve months of receiving the request, make a ruling to maintain the registered trademark or declare it invalid and notify the parties in writing; in special circumstances, this period may be extended by six months with the approval of the administrative department for industry and commerce under the State Council. A party who disagrees with the Board’s ruling may bring a lawsuit in a people’s court within thirty days of receiving the notice. The people’s court shall notify the opposing party in the ruling proceedings to take part in the lawsuit as a third party.

During its examination of a request for invalidation under the preceding paragraph, where the determination of the prior rights involved must be based on the outcome of another case being tried by a people’s court or handled by an administrative authority, the Trademark Review and Adjudication Board may suspend the examination. The examination shall resume once the cause of the suspension is removed.

Where, after the statutory time limit expires, a party has not applied for review of a decision of the Trademark Office declaring a registered trademark invalid, or has not brought a lawsuit in a people’s court against a review decision of the Trademark Review and Adjudication Board or its ruling to maintain or invalidate a registered trademark, the decision of the Trademark Office or the review decision or ruling of the Board takes effect.

A registered trademark declared invalid under Article 44 or Article 45 of this Law shall be published by the Trademark Office, and the exclusive right to use the registered trademark is deemed never to have existed.

A decision or ruling declaring a registered trademark invalid has no retroactive effect on judgments, rulings, or mediation statements in trademark infringement cases made and enforced by a people’s court, on decisions in trademark infringement cases made and enforced by the administrative department for industry and commerce, or on trademark assignment or license contracts already performed before the declaration of invalidity. However, losses caused to others by the registrant’s bad faith shall be compensated.

Where not returning trademark infringement damages, trademark assignment fees, or trademark royalties under the preceding paragraph would clearly violate the principle of fairness, they shall be returned in whole or in part.

For the purposes of this Law, use of a trademark means using the trademark on goods, packaging or containers of goods, or trading documents for goods, or in advertising, exhibitions, or other commercial activities, to identify the source of the goods.

Where a registrant, in using a registered trademark, alters on its own the registered trademark, its name or address, or other registered particulars, the local administrative department for industry and commerce shall order it to correct this within a time limit; if it fails to do so by the deadline, the Trademark Office shall cancel the registered trademark.

Where a registered trademark has become the generic name of the goods for which its registration was approved, or has not been used for three consecutive years without justifiable reasons, any entity or individual may apply to the Trademark Office to cancel the registered trademark. The Trademark Office shall make a decision within nine months of receiving the application; in special circumstances, this period may be extended by three months with the approval of the administrative department for industry and commerce under the State Council.

Where a registered trademark is cancelled, declared invalid, or not renewed upon expiry, the Trademark Office shall not approve any application to register a trademark identical or similar to it within one year from the date of cancellation, invalidation, or deregistration.

Where Article 6 of this Law is violated, the local administrative department for industry and commerce shall order the party to apply for registration within a time limit. Where the illegal business turnover is 50,000 yuan or more, a fine of up to 20 percent of the illegal business turnover may be imposed; where there is no illegal business turnover or it is less than 50,000 yuan, a fine of up to 10,000 yuan may be imposed.

Where an unregistered trademark is passed off as a registered trademark, or an unregistered trademark is used in violation of Article 10 of this Law, the local administrative department for industry and commerce shall stop the act and order correction within a time limit, and may circulate a notice of criticism. Where the illegal business turnover is 50,000 yuan or more, a fine of up to 20 percent of the illegal business turnover may be imposed; where there is no illegal business turnover or it is less than 50,000 yuan, a fine of up to 10,000 yuan may be imposed.

Where Article 14, paragraph 5 of this Law is violated, the local administrative department for industry and commerce shall order correction and impose a fine of 100,000 yuan.

A party who disagrees with a decision of the Trademark Office to cancel or not to cancel a registered trademark may apply to the Trademark Review and Adjudication Board for review within fifteen days of receiving the notice. The Board shall make a decision within nine months of receiving the application and notify the parties in writing; in special circumstances, this period may be extended by three months with the approval of the administrative department for industry and commerce under the State Council. A party who disagrees with the Board’s decision may bring a lawsuit in a people’s court within thirty days of receiving the notice.

Where, after the statutory time limit expires, a party has not applied for review of a decision of the Trademark Office to cancel a registered trademark, or has not brought a lawsuit in a people’s court against a review decision of the Trademark Review and Adjudication Board, the decision to cancel the registered trademark or the review decision takes effect.

A cancelled registered trademark shall be published by the Trademark Office, and the exclusive right to use the registered trademark terminates from the date of publication.

The exclusive right to use a registered trademark is limited to the trademark approved for registration and the goods for which its use is approved.

Any of the following acts infringes the exclusive right to use a registered trademark:

(1) using a trademark identical to a registered trademark on the same goods without the registrant’s permission;

(2) using a trademark similar to a registered trademark on the same goods, or using a trademark identical or similar to a registered trademark on similar goods, without the registrant’s permission, where this is likely to cause confusion;

(3) selling goods that infringe the exclusive right to use a registered trademark;

(4) counterfeiting, or making without authorization, representations of another party’s registered trademark, or selling such counterfeit or unauthorized representations;

(5) replacing a registrant’s registered trademark without the registrant’s consent and putting the goods bearing the replacement trademark back on the market;

(6) intentionally facilitating acts that infringe another party’s exclusive right to use a trademark, or helping others commit such acts;

(7) causing other harm to another party’s exclusive right to use a registered trademark.

Where another party’s registered trademark, or an unregistered well-known trademark, is used as the trade name in an enterprise name, misleading the public and constituting unfair competition, the matter shall be handled under the Anti-Unfair Competition Law of the People’s Republic of China.

Where a registered trademark contains the generic name, device, or model of the goods, or directly indicates the quality, main raw materials, function, use, weight, quantity, or other characteristics of the goods, or contains a geographical name, the holder of the exclusive right to use the registered trademark has no right to prohibit others from using these elements properly.

Where a three-dimensional registered trademark contains a shape that results from the nature of the goods themselves, a shape of the goods necessary to obtain a technical effect, or a shape that gives the goods substantial value, the holder of the exclusive right to use the registered trademark has no right to prohibit others from using that shape properly.

Where, before the registrant applied for registration, another party had already used, on the same or similar goods and earlier than the registrant, a trademark identical or similar to the registered trademark that has a certain influence, the holder of the exclusive right to use the registered trademark has no right to prohibit that user from continuing to use the trademark within its original scope of use, but may require it to add an appropriate distinguishing mark.

Where a dispute arises from any of the acts infringing the exclusive right to use a registered trademark listed in Article 57 of this Law, the parties shall resolve it through consultation. If they are unwilling to consult or consultation fails, the registrant or an interested party may bring a lawsuit in a people’s court or request the administrative department for industry and commerce to handle the matter.

Where the administrative department for industry and commerce, in handling the matter, finds that infringement has occurred, it shall order the infringement to stop immediately, confiscate and destroy the infringing goods and the tools mainly used to make the infringing goods or counterfeit representations of the registered trademark. Where the illegal business turnover is 50,000 yuan or more, a fine of up to five times the illegal business turnover may be imposed; where there is no illegal business turnover or it is less than 50,000 yuan, a fine of up to 250,000 yuan may be imposed. A heavier penalty shall be imposed on a party that commits trademark infringement two or more times within five years or where other serious circumstances exist. Where a party sells goods without knowing that they infringe the exclusive right to use a registered trademark, and can prove that it obtained the goods lawfully and identify the supplier, the administrative department for industry and commerce shall order it to stop selling them.

For a dispute over the amount of compensation for infringement of the exclusive right to use a trademark, the parties may request mediation by the administrative department for industry and commerce handling the matter, or may bring a lawsuit in a people’s court under the Civil Procedure Law of the People’s Republic of China. Where the parties do not reach an agreement through mediation by the administrative department for industry and commerce, or a party fails to perform the mediation statement after it takes effect, the parties may bring a lawsuit in a people’s court under the Civil Procedure Law of the People’s Republic of China.

The administrative department for industry and commerce has the authority to investigate and handle acts infringing the exclusive right to use a registered trademark in accordance with the law; where a crime is suspected, it shall promptly transfer the case to the judicial authorities to be handled in accordance with the law.

When investigating and handling a suspected infringement of another party’s exclusive right to use a registered trademark on the basis of evidence of suspected violations already obtained or a report, an administrative department for industry and commerce at or above the county level may exercise the following powers:

(1) questioning the parties concerned and investigating circumstances related to the infringement of another party’s exclusive right to use a registered trademark;

(2) inspecting and copying contracts, invoices, account books, and other relevant materials of the parties related to the infringing activities;

(3) conducting on-site inspections of premises where a party is suspected of carrying out activities infringing another party’s exclusive right to use a registered trademark;

(4) inspecting articles related to the infringing activities, and sealing up or seizing articles proven by evidence to infringe another party’s exclusive right to use a registered trademark.

When the administrative department for industry and commerce exercises the powers specified in the preceding paragraph in accordance with the law, the parties shall assist and cooperate and shall not refuse or obstruct it.

In the course of investigating and handling a trademark infringement case, where ownership of the trademark is disputed or the right holder has at the same time brought a trademark infringement lawsuit in a people’s court, the administrative department for industry and commerce may suspend the investigation and handling of the case. Once the cause of the suspension is removed, it shall resume or conclude the investigation and handling of the case.

The amount of compensation for infringement of the exclusive right to use a trademark is determined by the actual losses the right holder suffered from the infringement; where the actual losses are difficult to determine, it may be determined by the benefits the infringer obtained from the infringement; where both the right holder’s losses and the infringer’s benefits are difficult to determine, it shall be reasonably determined by reference to a multiple of the trademark license fee. For malicious infringement of the exclusive right to use a trademark where the circumstances are serious, the amount of compensation may be set at one to five times the amount determined by the above methods. The amount of compensation shall include the reasonable expenses the right holder paid to stop the infringement.

To determine the amount of compensation, where the right holder has done its best to provide evidence and the account books and materials related to the infringement are mainly in the infringer’s possession, the people’s court may order the infringer to provide those account books and materials. If the infringer does not provide them or provides false account books or materials, the people’s court may determine the amount of compensation with reference to the right holder’s claims and the evidence it has provided.

Where the actual losses the right holder suffered from the infringement, the benefits the infringer obtained from the infringement, and the license fee for the registered trademark are difficult to determine, the people’s court shall award compensation of up to 5 million yuan according to the circumstances of the infringement.

When trying a trademark dispute, the people’s court shall, at the right holder’s request, order the destruction of goods bearing counterfeit registered trademarks, except in special circumstances; order the destruction, without compensation, of the materials and tools mainly used to make such goods; or, in special circumstances, order that such materials and tools be kept out of commercial channels, without compensation.

Goods bearing counterfeit registered trademarks shall not enter commercial channels merely by having the counterfeit registered trademark removed.

Where the holder of the exclusive right to use a registered trademark claims compensation and the alleged infringer defends on the ground that the holder has not used the registered trademark, the people’s court may require the holder to provide evidence of its actual use of the registered trademark within the previous three years. If the holder can neither prove actual use of the registered trademark within the previous three years nor prove other losses suffered from the infringement, the alleged infringer is not liable for compensation.

A party that sells goods without knowing that they infringe the exclusive right to use a registered trademark, and can prove that it obtained the goods lawfully and identify the supplier, is not liable for compensation.

Where a registrant or an interested party has evidence that another party is infringing or is about to infringe its exclusive right to use a registered trademark, and failure to stop the act promptly would cause irreparable harm to its lawful rights and interests, it may, in accordance with the law, apply to a people’s court before bringing a lawsuit for measures ordering the act to stop and for property preservation.

To stop an infringement, where evidence may be lost or difficult to obtain later, a registrant or an interested party may, in accordance with the law, apply to a people’s court for preservation of evidence before bringing a lawsuit.

Where using a trademark identical to a registered trademark on the same goods without the registrant’s permission constitutes a crime, criminal liability shall be pursued in accordance with the law, in addition to compensation for the losses of the infringed party.

Where counterfeiting, or making without authorization, representations of another party’s registered trademark, or selling such counterfeit or unauthorized representations, constitutes a crime, criminal liability shall be pursued in accordance with the law, in addition to compensation for the losses of the infringed party.

Where selling goods known to bear counterfeit registered trademarks constitutes a crime, criminal liability shall be pursued in accordance with the law, in addition to compensation for the losses of the infringed party.

Where a trademark agency commits any of the following acts, the administrative department for industry and commerce shall order it to make corrections within a time limit, give it a warning, and impose a fine of 10,000 yuan to 100,000 yuan; the directly responsible person in charge and other directly responsible persons shall be given a warning and a fine of 5,000 yuan to 50,000 yuan; where a crime is constituted, criminal liability shall be pursued in accordance with the law:

(1) in handling trademark matters, forging or altering legal documents, seals, or signatures, or using forged or altered legal documents, seals, or signatures;

(2) soliciting trademark agency business by means such as disparaging other trademark agencies, or disrupting the order of the trademark agency market by other unfair means;

(3) violating Article 4 or Article 19, paragraphs 3 and 4 of this Law.

Where a trademark agency commits any act specified in the preceding paragraph, the administrative department for industry and commerce shall record it in the agency’s credit file; where the circumstances are serious, the Trademark Office and the Trademark Review and Adjudication Board may also decide to stop accepting trademark agency business from it and publish the decision.

A trademark agency that violates the principle of good faith and infringes the lawful interests of its principal shall bear civil liability in accordance with the law and shall be disciplined by the trademark agency industry association in accordance with its articles of association.

Administrative penalties such as warnings and fines shall be imposed, according to the circumstances, for bad-faith applications for trademark registration; for bad-faith trademark lawsuits, the people’s court shall impose penalties in accordance with the law.

State functionaries engaged in trademark registration, administration, and review must enforce the law impartially, be honest and self-disciplined, be faithful to their duties, and provide courteous service.

The Trademark Office, the Trademark Review and Adjudication Board, and state functionaries engaged in trademark registration, administration, and review shall not engage in trademark agency business or in the production or sale of goods.

The administrative department for industry and commerce shall establish and improve an internal supervision system to supervise and inspect how state functionaries responsible for trademark registration, administration, and review enforce laws and administrative regulations and observe discipline.

Where state functionaries engaged in trademark registration, administration, and review neglect their duties, abuse their powers, or engage in malpractice for personal gain, handle trademark registration, administration, or review matters in violation of the law, accept money or property from parties, or seek improper benefits, criminal liability shall be pursued in accordance with the law where a crime is constituted; where no crime is constituted, they shall be given sanctions in accordance with the law.

Fees shall be paid for applying for trademark registration and handling other trademark matters. The specific fee standards are set separately.

This Law takes effect on March 1, 1983. The Regulations Governing Trademarks promulgated by the State Council on April 10, 1963 are repealed at the same time, and any other provisions on trademark administration that conflict with this Law cease to be effective at the same time.

Trademarks registered before this Law takes effect remain valid.