1.First to file system
China’s trademark and IP works on a first to file basis, which means no amount of evidence that you have built up a brand, to be however well known, for however long will be taken into consideration. An example of this is when apple failed to win back the trade mark ‘iphone’ from a small leather phone case manufacturer who snapped up the name first.
2.Trademark squatters
Similar to web domain names in the 90’s and early 00’s, registering your trademark in China first, is the only way you can guarantee to keep ownership of your brand name in the market. Trademark squatters will register hundreds of trademarks, with the intention to sell them back to brands at a huge profit.
3. Over a billion people
China’s huge population are all under the one national trade mark and IP system. Thus there are an enormous number of businesses, many that want Western company names and brand names for their goods and services. We have come across countless occasions where our clients brand name has been registered, not for squatting purposes but because a Chinese business is coincidentally using the name in the market.
4. Trade Marks are required to sell on top commerce platforms
These new regulations from China’s e-commerce giants (including JD.com and Tmall) mean brands, or their China partners, must submit their registered trade mark in order to list their products online. Ultimately this stems from China’s distrust of supply chain and fakes products. China’s e-commerce market is the largest in the World and larger than the the next 10 markets combined, not having your trade mark may not only cut out your online volumes but also stop a potential partner working with you entirely.
5. The largest grocery market in the World
The cost to registering trade marks in multiple territories adds up, It’s common sense to select the largest and fastest growing markets in the world.