The landscape for trademark squatters in China shifted dramatically with a series of 2024 and 2025 reforms designed to curb malicious registrations. These updates, including the 2025 Trademark Law (Draft Revision), have introduced stricter penalties and lowered the barrier for foreign brands to reclaim their intellectual property.
Key changes impacting squatters include:
Financial Penalties for Bad Faith: Malicious applicants now face administrative fines of up to RMB 100,000 (approx. £11,000). This shifts the economic calculus for squatters from a low-cost gamble to a potential financial liability.
Civil Liability for Malicious Litigation: Squatters who use their registrations to sue genuine brand owners now face judicial sanctions and must pay civil damages for the losses they cause.
Expanded Protection for Well-Known Marks: Unregistered well-known marks now enjoy broader cross-class protection. Previously, protection was largely limited to registered marks, but the new rules prohibit bad-faith registration on dissimilar goods if it misleads the public.
Stricter "Intent-to-Use" Requirements: The China National Intellectual Property Administration (CNIPA) can now proactively reject applications that clearly exceed normal business needs or lack genuine commercial intent.
Compulsory Evidence of Use: To keep a mark, owners must now provide credible and continuous evidence of commercial use, such as invoices and customs data. This "use-it-or-lose-it" approach helps clear "deadwood" from the register that squatters often hoard.
Shortened Opposition Period: The window to challenge a published application has been compressed from three months to two, forcing brand owners to be more agile but also reducing the time squatters can hold a mark in limbo.