China’s Revised Trademark Law Draft Targets Bad Faith Filings and Enhances Enforcement Measures

China’s Trademark Law, last revised in 2019, is undergoing significant proposed amendments aimed at curbing trademark hoarding and strengthening trademark protection. The new draft revision, released by the legislature on December 26, 2025, introduces several key changes that address bad faith trademark applications and use, expand the scope of protection, and enhance enforcement mechanisms.

The 2019 revision introduced Article 4, which prohibited registration of trademarks filed “in bad faith without intention to use.” The 2023 draft had proposed requiring trademark applicants to declare use of their marks, with random checks by the China National Intellectual Property Administration (CNIPA) every five years. However, this approach faced opposition from stakeholders.

The current draft, now renumbering Article 4 as Article 18, explicitly targets “defensive trademarks” — filings made not for genuine use but to block others from registering identical or similar marks in related goods categories. Article 18 states that trademark applications “not filed for the purpose of use and that clearly exceed normal production and business needs shall not be registered.” Experts suggest clarifying this provision by adding “protection” to the scope, reading “exceed normal production, business and protection needs,” to better capture defensive filings.

Article 40 introduces a provision allowing suspension of examination procedures for new trademark applications refused due to prior marks, while applicants address the obstacle. However, the draft’s use of the term “shall generally suspend” introduces ambiguity. Legal commentators recommend removing “generally” to ensure clarity and predictability in the examination process.

A notable judicial provision in Article 40 requires courts to base decisions on the circumstances prevailing at the time of the administrative decision, rather than at the time of the court ruling. This approach has been criticized as it prevents courts from considering changes in circumstances that may have resolved registration obstacles.

To deter bad faith filings, Article 53 proposes fines up to RMB 100,000 for applicants violating prohibitions such as using forbidden signs, lacking intent to use, or infringing prior rights. While welcomed as a deterrent, the effectiveness will depend on enforcement.

The draft also suggests expanding remedies by allowing claims for compensation against malicious trademark applicants, who impose costly opposition or invalidation proceedings. This could be achieved by amending Article 78 to include “a trademark registration is applied for in bad faith” alongside existing provisions addressing malicious lawsuits.

Article 56 consolidates various trademark violations, including unauthorized alterations to trademarks or registrant information, which may result in warnings, rectification orders, or fines. The draft adds misuse of trademarks in a misleading manner as a new violation.

Importantly, the draft empowers the trademark authority to revoke trademarks ex officio if they become generic names for the goods or are not used. This administrative power aims to expedite the removal of invalid or abandoned marks from the registry.

However, the draft omits provisions allowing any person to request revocation of trademarks used misleadingly, limiting this to administrative authority action. Additionally, it does not address cases where registrant changes transform a trademark into an infringement of another mark. Experts recommend granting trademark owners the right to request revocation in such scenarios to ensure fairness.

Overall, the draft revision reflects China’s ongoing efforts to align its trademark system with international practices while addressing domestic challenges such as trademark hoarding and bad faith filings. The proposed amendments enhance administrative tools and sanctions but require further refinement to improve legal certainty and enforcement effectiveness.