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Legal Update

China’s New Trademark Law

The Standing Committee of National People’s Congress of the People’s Republic of China has recently adopted the decision of revision of the “Trademark Law of the PRC” (“the Law”).  The revised Trademark Law of the PRC (“the Revised Law”) will become effective on 1st December 2001.  The major changes brought about by the Revised Law are discussed below: -

 Registration

 1.     Three-dimensional signs

Under the existing law, there are no provisions dealing with three-dimensional signs.  The Revised Law specifically states that three-dimensional marks can be filed for registration provided that the mark can serve to distinguish the goods of the proprietor from goods of others. However,  three-dimensional shapes that are determined by the nature of the goods or that are demanded to achieve certain technological result are not registrable. 

2.         Distinctiveness through use

Prima facie indistinctive mark will be accepted for registration under the Revised Law if it can be shown that the mark has become distinctive through use.  

3.         Protection of well-known trademarks

Apart from protection from the Anti-Unfair Competition Law and Anti-Unfair Competition Regulations of the PRC, the Revised Law specifically provides for prohibition of registration and use of a mark which is an imitation of a well-known trademark.  Where the well-known mark is not registered in China, the protection is limited to similar goods.  Where the well-known is registered in China, the protection is extended to dissimilar goods also.

4.         Enlargement of the right of priority

In addition to recognition of the right of priority in accordance with the Paris Convention or other international treaty or principle of reciprocity, the Revised Law recognizes the entitlement of right of priority derived from a situation where a trademark was first used at an international exhibition sponsored or recognized by the Chinese Government and the application for registration is filed within 6 months from the date of exhibition.

 

Registration/Opposition/Cancellation

 

5.       Rights of further appeal

In the existing trademark law, if any party is dissatisfied with the decision of trademark office regarding a trade mark application or an opposition/cancellation proceeding, he can apply for a review with the Trademark Review and Adjudication Board (“the Board”).   The decision of the Board is final and no further action can be taken for reviewing the decision.  The Revised Law provides that a party can in future appeal to the People’s Court if he is dissatisfied with the decision of the Board.

  

Infringement

 6.     Injunction Order

The Revised Law expressly provides that a trademark owner can complain to the People’s Court as well as the local administrative authority in a case of infringement.  It sets out clearly what orders can be granted by the administrative authority which include an injunction order, a destruction order of the infringing goods or tools and a fine.  A party dissatisfied with the decision of the local administrative authority will have the right to appeal to the People’s Court.

7.       Pre-action measures

The Revised Law gives the trademark proprietor or interested parties a right to request the People’s Court to make an order to stop infringement acts and to preserve property prior to instituting proceedings if the applicant can satisfy the Court that unless the infringement acts are stopped immediately, he would suffer irreparable damage.  This remedy will be similar to an ex-parte injunction order.

The above is only a general discussion of the more significant changes made to the PRC Trademark Law.  The Implementing Regulations under the Trademark Law of PRC will be revised also and the Revised Regulations are expected to be issued in December 2001.


Prepared in November 2001.

The above legal information is provided for general reference only. Advice of qualified Hong Kong lawyers should be sought in respect of any particular circumstances arising under the Ordinances referred to in this update.


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