SAIC: Chinese Well-Known Trademarks Prohibited to Be Used for Promotion

The utilization of Chinese Well-known Trademarks for the purpose of product promotion is explicitly banned in the newly amended Trademark Law in China, preventing such mark owners from using those marks as a powerful promotion tool. The practice is good for fair competition in the market, said Wu Qun, Deputy Inspector of the Trademark Office under the State Administration for Industry and Commerce. Li Zhijun, Deputy Director of the Trademark Appraisal Committee, also agreed with him.

For a long time, Chinese Well-known Trademarks were used by enterprises as an honor in their products or campaigns; at the same time, they were often used as a tool to judge the product quality by consumers. Since May 1st, the recently revised Trademark Law has officially entered into force, including provisions prohibiting the utilization of Chinese Well-known Trademarks in promotions and campaigns.

According to Wu Qun, the creation of Chinese Well-known Trademarks was initially designed to solve trademark disputes. However, in practice, some enterprises used such marks as a promotion tool, which to some extent caused unfair competition with other entities.

Li said that according to the new Trademark Law, the Trademark Appraisal Committee should identify the well-known status of a mark upon the request of involved parties in the process of settling a dispute. The cognizance of such status was a way of acquiring protection, but not the purpose of initiating a dispute. 

(Source: IPR in China)