China’s First-to-File System: Why It Matters for Foreign Brands

If you’re planning to sell products or services in China, then you need to understand one critical rule: whoever files first, wins. This is what China’s first-to-file trademark system is all about. However, it’s completely different from what many Western companies are used to. In fact, this system has caught countless foreign brands off guard, costing them millions of dollars and years of legal battles.

Moreover, the landscape is changing rapidly. With new reforms in 2025 and increasing competition, understanding China’s trademark system has never been more important. So let’s break it down in simple terms.

What Is China’s First-to-File Trademark System?

China’s trademark system operates on a simple but powerful principle: the first person or company to file a trademark application gets the rights to that trademark. Essentially, it doesn’t matter if you’ve been using your brand name for 20 years in other countries. If someone else files for that trademark in China before you do, they own it—not you.

How the System Actually Works

The China National Intellectual Property Administration (CNIPA) manages all trademark registrations in China. When someone submits an application, CNIPA checks if the trademark is available. Therefore, the filing date becomes incredibly important. Even if two companies submit applications on the same day, the one with the earlier timestamp gets priority.

This system was established under China’s Trademark Law, which clearly states in Article 29:

“Where two or more applicants apply for registration of identical or similar trademarks for the same or similar goods, the trademark that was applied for earlier shall be subject to preliminary examination and public announcement. Where applications are filed on the same day, the trademark that was used earlier shall be subject to preliminary examination and public announcement, while the other applications shall be rejected and no public announcement shall be made.”

In other words, registration date beats everything else. Furthermore, this applies to all types of trademarks—word marks, logos, designs, and even three-dimensional marks.

Why China Uses This System

China adopted the first-to-file system for several practical reasons. First of all, it makes the process much more straightforward and efficient. Instead of investigating who used a trademark first (which can be messy and complicated), CNIPA simply looks at who filed first. Additionally, it encourages businesses to act quickly and register their brands early, which helps build a more organized trademark database.

As of 2025, China has integrated digital reforms into this system. Specifically, CNIPA launched a unified identity platform that makes the process more efficient. However, there’s an important catch: foreign applicants must work through licensed Chinese agents. That’s where firms like Yucheng IP Law (YCIP) come in to help navigate the system.

The Numbers Tell the Story

To understand how active China’s trademark system is, let’s look at some recent statistics. In 2024, China processed 6.675 million trademark applications and registered 4.78 million trademarks—that’s a 9.1% increase from the previous year. Even more importantly, the approval rate reached 71%, showing that the system is becoming more mature and predictable.

For foreign companies specifically, the trend is clear. In the first half of 2025 alone, 94,000 foreign trademark applications were filed in China, representing a 7.4% increase compared to the same period in 2024. Companies from Germany, Italy, and the United States are leading this charge, recognizing that protecting their brands in China is absolutely essential.

First-to-File vs. First-to-Use: What’s the Difference?

Now, you might be wondering: how is this different from other countries? Well, the answer lies in understanding two completely different approaches to trademark rights. Let’s break down the key differences between first-to-file and first-to-use systems.

Understanding First-to-File (China’s System)

Under China’s first-to-file system, trademark rights go to whoever submits their application first. It’s that simple. Even if you’ve been selling products under your brand name for years, if someone else files before you, they get the trademark rights. Consequently, this system rewards quick action and proactive protection.

For example, imagine you’re a successful coffee shop chain in Australia called “Sunny Beans Coffee.” You’ve built a great reputation over 10 years. However, if you decide to expand to China and discover that someone already filed “Sunny Beans Coffee” as a trademark last month, you’re out of luck. That other person now owns the rights in China, regardless of your history in Australia.

Understanding First-to-Use (U.S. and Common Law Systems)

In contrast, countries like the United States use a first-to-use system. Under this approach, trademark rights belong to whoever used the mark first in commerce. Registration helps strengthen your rights, but it’s not absolutely necessary. Instead, simply using your trademark in business can establish ownership.

So, going back to our coffee shop example, if you opened “Sunny Beans Coffee” in California and operated for five years, you’d have trademark rights there—even without formal registration. Moreover, if someone tried to register your name later, you could challenge them by proving you used it first.

Side-by-Side Comparison

Why This Difference Matters for Your Business

This fundamental difference creates serious challenges for foreign brands entering China. Many companies assume their trademark rights will automatically transfer to China because they’re already registered in other countries. Unfortunately, that’s not how it works. China’s first-to-file system operates independently from other countries’ trademark systems.

Therefore, even global giants have learned this lesson the hard way. For instance, luxury brands, tech companies, and consumer goods manufacturers have all faced situations where their brand names were already registered by someone else in China. As a result, they either had to rebrand completely, buy back the trademark at inflated prices, or fight lengthy legal battles.

Why This Matters for Foreign Brands in China

At this point, you might be thinking: “Okay, I understand the system, but why should I care?” Well, the stakes are incredibly high for foreign brands operating in—or planning to enter—the Chinese market. Let’s explore exactly why China’s first-to-file trademark system should be at the top of your priority list.

China’s Market Size Makes It Essential

First and foremost, China represents one of the world’s largest consumer markets. With over 1.4 billion people and a rapidly growing middle class, the opportunities are enormous. However, without proper trademark protection, you’re essentially building your business on someone else’s land. Consequently, all your marketing efforts, brand recognition, and customer loyalty could be lost in an instant if someone else owns your trademark.

Moreover, Chinese consumers are becoming increasingly sophisticated and brand-conscious. They’re willing to pay premium prices for authentic, well-known brands. Therefore, protecting your trademark isn’t just about legal rights—it’s about protecting your revenue stream and market position.

The Growing Competition for Brand Names

The numbers speak for themselves. As mentioned earlier, 94,000 foreign companies filed trademark applications in China during the first half of 2025 alone. This represents a significant 7.4% increase compared to the previous year. Clearly, more and more international businesses are recognizing the importance of early trademark registration.

Companies from Germany, Italy, and the United States are leading this wave of applications. In fact, they’re not just protecting their primary brand names—they’re also registering variations, Chinese translations, and related brands. This strategic approach shows that sophisticated companies understand the value of comprehensive trademark protection in China.

What’s at Stake If You Don’t Act

Let’s talk about the real risks. When you don’t register your trademark in China quickly enough, several serious problems can occur:

• Complete Loss of Brand Control: Someone else could legally use your brand name, logo, and even similar designs in China. Meanwhile, you have no power to stop them because they filed first.
• Expensive Buyback Costs: If you want to get your trademark back, you’ll likely have to negotiate a purchase. These costs can run into hundreds of thousands or even millions of dollars, depending on how valuable your brand is.
• Market Entry Delays: Without your trademark, you can’t legally sell your products under your brand name in China. This means you’ll need to either rebrand completely or wait until you resolve the trademark issue—both of which waste valuable time.
• Legal Battle Expenses: Fighting a trademark dispute in China can be costly and time-consuming. Legal fees, court costs, and the resources needed to gather evidence can quickly add up.
• Damaged Reputation: If someone else is selling products under your brand name—especially low-quality products—it can seriously damage your brand’s reputation. Furthermore, customers might associate poor quality with your brand, even though you had nothing to do with those products.

The Benefits of Early Registration

On the flip side, registering your trademark early in China provides powerful benefits:

• Exclusive Rights: Once registered, you have the exclusive right to use your trademark in China for the classes of goods or services you’ve registered. Nobody else can legally use it without your permission.
• Legal Enforcement Power: With a registered trademark, you can take action against counterfeiters and infringers. This includes working with Chinese customs to stop fake products at the border.
• Business Credibility: Chinese partners, distributors, and customers take you more seriously when you have proper trademark registration. It shows you’re committed to the market and operating professionally.
• Asset Value: A registered trademark is a valuable business asset. It can be licensed, sold, or used as collateral. Additionally, it increases your company’s overall valuation.
• Peace of Mind: Perhaps most importantly, early registration gives you confidence to invest in marketing, build distribution channels, and grow your business without worrying about trademark challenges.

Real-World Impact on Different Industries

Different industries face unique challenges in China. For example, fashion brands struggle with design copying and logo imitation. Meanwhile, technology companies must protect not only their brand names but also product names and software trademarks. Similarly, consumer goods companies need to register Chinese translations of their brand names, which adds another layer of complexity.

Furthermore, e-commerce businesses face particular risks because online marketplaces require valid trademark registration before allowing you to sell. Without it, you simply can’t access major platforms like Tmall or JD.com—which means missing out on millions of potential customers.

The Biggest Risk: Trademark Squatting Explained

Now we come to the most serious threat facing foreign brands in China: trademark squatting. This practice has affected countless international companies, from small startups to billion-dollar corporations. Understanding trademark squatting is absolutely critical if you want to protect your brand in the Chinese market.

What Is Trademark Squatting?

Trademark squatting happens when someone registers a trademark they have no intention of actually using. Instead, they register it specifically to sell it back to the rightful owner at an inflated price. Think of it like digital domain squatting, but with trademarks. Essentially, these “squatters” scan international markets looking for successful brands that haven’t yet registered in China, then rush to file applications for those brand names.

In legal terms, this is called “bad-faith filing.” China’s Trademark Law specifically addresses this issue in Article 4, which states:

“Where a trademark applied for registration for use on a commodity is against the principle of good faith, it shall not be registered if it is applied for by an entity which is not engaged in the production, manufacture, processing, selection or distribution of the commodity concerned, or by an individual which is not engaged therein.”

Moreover, Article 19 reinforces this protection by stating that applications filed in bad faith without the intent to use shall be rejected. However, despite these legal protections, trademark squatting remains a widespread problem.

The Scale of the Problem

The numbers are truly shocking. In 2023 alone, CNIPA handled approximately 470,000 malicious trademark cases—representing a 27% increase from the previous year. This means that nearly half a million trademark applications were filed with bad intentions. Furthermore, these figures only include the cases that were actually detected and addressed, suggesting the real number could be even higher.

What’s particularly concerning is that trademark squatting has become increasingly sophisticated. Professional squatters now use advanced monitoring tools to track emerging brands in other countries. As soon as a brand starts gaining traction internationally, squatters file applications in China before the actual brand owner even thinks about Chinese market entry.

Real Cases That Show the Impact

Let’s look at some real examples that demonstrate just how serious this problem can be:

The Apple iPad Case: Perhaps one of the most famous examples, Apple faced a trademark dispute over the “iPad” name in China. A Chinese company called Proview had registered the trademark years earlier. Eventually, Apple had to pay $60 million to settle the dispute and acquire the rights to use their own product name in China. This case shows that even tech giants with unlimited resources aren’t immune to trademark squatting.

The Manolo Blahnik Victory: The luxury shoe brand Manolo Blahnik fought a trademark squatting battle that lasted an incredible 22 years. A Chinese businessman had registered the brand name and refused to give it up. Finally, in 2022, China’s Supreme Court ruled in favor of Manolo Blahnik. While this was a victory, imagine the legal costs, lost opportunities, and stress over more than two decades of fighting.

These cases aren’t isolated incidents. Brands like New Balance, Jordan (Michael Jordan), and countless others have faced similar challenges. In fact, many smaller companies simply can’t afford to fight these battles and end up either paying ransoms or abandoning the Chinese market entirely.

How Squatters Operate

Understanding how trademark squatters work can help you protect your brand. Typically, they follow these patterns:

• Market Monitoring: They actively watch international markets, trade shows, and business news to identify promising brands that aren’t yet in China.
• Bulk Filing: Many squatters file hundreds or even thousands of trademark applications at once, hoping that at least some will be valuable.
• Strategic Timing: They often file applications just before a foreign brand announces plans to enter China, maximizing their leverage.
• Multiple Variations: Squatters don’t just register your exact brand name—they might also register similar names, Chinese translations, or common misspellings.
• Patient Waiting: After registration, they simply wait until you need the trademark, then demand payment to transfer it to you.

Your Options If You’re Already Squatted

If you discover that someone has already registered your trademark in China, don’t panic. You have several legal options available, though each comes with its own challenges:

Opposition Proceedings: If the trademark application is still in the publication phase (before final registration), you can file an opposition. This is your chance to argue why the applicant shouldn’t get the trademark. However, you’ll need to act quickly because the opposition period only lasts three months.

Invalidation Actions: Even after a trademark is registered, you can challenge it through an invalidation proceeding. According to Article 44 of China’s Trademark Law, trademarks can be cancelled if they were obtained through bad faith or violate prior rights. Nevertheless, you’ll need strong evidence to prove bad faith.

Non-Use Cancellation: This is one of the most effective tools against squatters. Under Article 49, if a registered trademark hasn’t been used for three consecutive years, you can apply to cancel it. Since squatters typically don’t actually use the trademarks they register, this approach often succeeds. However, recent 2025 reforms have made evidence requirements stricter, so you’ll need to prepare carefully. Our guide on China’s trademark non-use cancellation rules provides detailed information.

Negotiated Settlement: Sometimes, the most practical solution is simply negotiating a purchase price with the squatter. While this feels unfair, it might be faster and cheaper than years of litigation. A skilled China trademark attorney can help negotiate reasonable terms.

Prevention Is Always Better Than Cure

Given the challenges of fighting trademark squatting, prevention is absolutely essential. The best defense is simple: file your trademark application in China as early as possible—ideally before you even enter the market. Many successful companies now include China trademark registration as part of their global brand protection strategy from day one, even if they have no immediate plans to sell in China.

How to Register Your Trademark in China: Step-by-Step

Now that you understand why trademark registration in China is so critical, let’s walk through exactly how to do it. The process might seem complicated at first, but breaking it down into clear steps makes it much more manageable. Moreover, with the right guidance from firms like YCIP’s trademark services, the process becomes significantly smoother.

Step 1: Conduct a Comprehensive Trademark Search

Before filing anything, you need to search for existing trademarks that might conflict with yours. This step is absolutely crucial because it helps you avoid wasting time and money on applications that will likely be rejected. Furthermore, a thorough search can reveal potential squatters or similar marks you need to address.

You can perform searches using several methods. The official CNIPA database provides basic search functionality, though it can be challenging to use if you don’t read Chinese. Therefore, many foreign companies work with professional search services. YCIP offers comprehensive trademark search tools and guidance that can identify potential conflicts across all relevant classes.

During your search, pay attention to these factors:

• Identical Marks: Obviously, if someone already registered your exact trademark, you have a problem.
• Similar Marks: Trademarks that look or sound similar can also cause conflicts, especially in the same industry.
• Chinese Translations: Don’t forget to search for Chinese versions of your brand name, as these are equally important.
• Different Classes: Check all relevant product and service classes, not just the obvious ones.

Step 2: Choose Your Trademark Classes Carefully

China uses the Nice Classification system, which divides goods and services into 45 different classes. You must specify which classes you want protection for. This decision requires careful strategy because each class requires a separate application and fee.

For example, if you sell clothing, you’d file under Class 25. However, if you also plan to open retail stores, you might need Class 35 as well. Similarly, if you’re thinking about future e-commerce sales, additional classes might be necessary. Our guide on China trademark requirements explains class selection in detail.

Step 3: Prepare Your Application Materials

Next, you need to gather all required documentation. The basic requirements include:

• Trademark Specimen: A clear image of your trademark (logo, wordmark, or combined mark)
• Business License: A copy of your company’s business registration documents
• Power of Attorney: Authorization for your Chinese agent to file on your behalf
• Applicant Information: Complete details about your company, including address and contact information
• Class and Goods Description: Specific description of the goods or services you want to protect

One important rule to remember: foreign companies cannot file directly with CNIPA. Instead, you must work through a licensed Chinese trademark agent. This requirement ensures that applications meet all technical and legal requirements. Consequently, choosing an experienced agent like YCIP becomes essential for success.

Step 4: Submit Your Application to CNIPA

Once your materials are ready, your agent will submit the application to CNIPA through their online system. As of 2025, CNIPA has implemented a unified digital platform that streamlines the filing process. However, only authorized agents can access this system, which is another reason why you need professional representation.

Upon submission, CNIPA will issue an application number. This number becomes your proof of filing and establishes your priority date—which, as we’ve discussed, is absolutely critical under China’s first-to-file system. Make sure to save this information carefully, as you’ll need it to track your application’s progress. You can learn more about checking your trademark status throughout the process.

Step 5: Examination Phase (Approximately 4 Months)

After filing, CNIPA conducts a formal examination to check if your application meets all basic requirements. Then, they perform a substantive examination to determine if your trademark conflicts with existing registrations or violates any legal provisions. Based on 2024 statistics, this examination phase takes an average of four months.

During examination, CNIPA might issue an office action if they find any problems. Common reasons for office actions include:

• Similarity to existing trademarks
• Lack of distinctiveness
• Descriptive or generic terms
• Violation of public morality or order
• Incomplete or unclear specimen

If you receive an office action, don’t worry—it’s not necessarily a rejection. Instead, it’s an opportunity to respond and clarify your application. However, you typically have only 15 days to respond, so time is critical. Professional guidance from YCIP can help you craft effective responses. Our article on responding to CNIPA office actions provides detailed strategies.

Step 6: Publication and Opposition Period (3 Months)

If your trademark passes examination, CNIPA publishes it in the official Trademark Gazette. This publication initiates a three-month opposition period during which anyone can challenge your trademark. While this might sound worrying, most applications pass through this period without opposition.

However, if someone does file an opposition, you’ll need to respond with evidence and arguments supporting your application. This process can extend your timeline significantly, potentially adding 6-12 months to the overall process. Therefore, having experienced legal representation becomes even more valuable during opposition proceedings.

Step 7: Registration Certificate Issuance

Finally, if no opposition is filed (or if you successfully defend against opposition), CNIPA issues your trademark registration certificate. Congratulations! You now have exclusive rights to use your trademark in China for the classes you’ve registered. Your trademark protection lasts for 10 years from the registration date, and you can renew it indefinitely for additional 10-year periods.

The total timeline from filing to registration typically takes 9-12 months for straightforward cases. However, cases involving office actions or oppositions can take 18-24 months or longer. Understanding these timelines helps you plan your China market entry strategy appropriately.

Understanding the Costs Involved

Many foreign companies want to know: how much does trademark registration in China actually cost? The answer depends on several factors, including the number of classes, whether you face any office actions, and your agent’s fees. Our comprehensive guide on China trademark registration fees breaks down all the costs you should expect.

What’s New in 2025: Recent Reforms You Need to Know

China’s trademark system is constantly evolving, and 2025 has brought some significant changes that directly affect foreign brands. These reforms aim to improve efficiency, combat bad-faith filings, and strengthen legitimate trademark owners’ rights. Therefore, understanding these updates is essential for anyone planning to register or already managing trademarks in China.

The Unified Digital Identity Platform

In October 2025, CNIPA launched a groundbreaking unified digital platform for intellectual property management. This platform represents a major technological upgrade to China’s entire IP system. Specifically, it integrates trademark, patent, and copyright management into one seamless system.

For foreign applicants, this digital transformation brings several important benefits:

• Better Traceability: You can now track your application status more easily throughout the entire process, from filing to registration.
• Faster Processing: Digital automation reduces processing times and minimizes administrative delays.
• Enhanced Transparency: The system provides clearer communication about application status and any issues that arise.
• Improved Bad-Faith Detection: Advanced algorithms help CNIPA identify suspicious filing patterns and potential trademark squatting more effectively.

However, there’s an important caveat: direct access to this digital platform remains limited for foreign applicants. You still need to work through licensed Chinese agents who have authorized access to the system. This requirement ensures that applications comply with all technical specifications and legal requirements.

Stricter Rules on Non-Use Cancellations

One of the most significant 2025 reforms involves tighter requirements for trademark non-use cancellations. Remember, this is one of your key tools for fighting trademark squatters. Under Article 49 of China’s Trademark Law, trademarks that haven’t been used for three consecutive years can be cancelled.

However, the new 2025 guidelines have raised the bar for what counts as valid evidence. Now, trademark owners must provide:

• Continuous Evidence: You can’t just show one instance of use from three years ago. Instead, you need to demonstrate consistent, ongoing commercial use.
• Verifiable Documentation: Evidence must be independently verifiable, such as invoices, contracts, advertising materials, and sales records with clear dates.
• Substantial Use: Token or minimal use might not be sufficient anymore. The use must be genuine commercial activity, not just symbolic gestures to maintain registration.
• Geographic Scope: Evidence should show use in mainland China specifically, not just Hong Kong, Macau, or Taiwan.

While these stricter requirements make it slightly harder to cancel unused trademarks, they also protect legitimate trademark owners from frivolous cancellation attempts. Furthermore, they encourage actual use of registered trademarks, which ultimately benefits the entire system. Our detailed guide on China’s trademark non-use cancellation rules explains these changes thoroughly.

Draft Amendments to Combat Bad-Faith Filings

Perhaps most importantly, CNIPA has proposed draft amendments to China’s Trademark Law that specifically target bad-faith filings. While these amendments haven’t been fully implemented yet, they signal China’s serious commitment to cleaning up trademark squatting.

The key proposed changes include:

• Higher Penalties: Significantly increased fines for applicants who file trademarks in bad faith, making squatting less profitable.
• Broader Definition: Expanded criteria for what constitutes bad-faith filing, making it easier to identify and reject malicious applications.
• Emphasis on Intent to Use: Stronger requirements to demonstrate genuine intent to use the trademark, not just register it speculatively.
• Agent Accountability: New provisions that hold trademark agents accountable if they knowingly assist bad-faith filings.

These proposed amendments reinforce the existing provisions in Article 19, which already states that bad-faith applications without intent to use shall be rejected. However, the new amendments would give CNIPA more tools and authority to enforce these rules effectively.

Improved Approval Rates Show System Maturity

Interestingly, recent statistics show that China’s trademark system is becoming more predictable and mature. In 2024, the overall approval rate reached 71%, representing a steady increase from previous years. This improvement suggests that CNIPA’s examination process is becoming more consistent and transparent.

For foreign applicants, this is encouraging news. It means that if you file a well-prepared application for a distinctive trademark without conflicts, your chances of approval are quite good. Moreover, the average examination time has decreased to approximately four months, making the entire process more efficient than ever before.

What These Changes Mean for Your Strategy

Given these 2025 reforms, here’s how you should adjust your trademark strategy:

Act Quickly but Carefully: While the system is improving, the first-to-file principle remains unchanged. Therefore, speed is still essential. However, take time to prepare your application properly to avoid office actions that could delay approval.

Plan for Actual Use: Don’t just register trademarks you might use someday. With stricter non-use requirements, you should have concrete plans for actually using your trademarks in China within three years of registration.

Document Everything: From day one of using your trademark in China, maintain detailed records. Keep invoices, contracts, advertising materials, and any other evidence that proves commercial use. This documentation will be invaluable if you ever face a cancellation challenge.

Monitor Continuously: Use CNIPA’s improved digital platform to monitor for potential infringement or squatting attempts. Early detection of problems makes them much easier to resolve. Consider using trademark monitoring tools to automate this process.

Key Legal Protections: Important Articles from China’s Trademark Law

Understanding the legal framework that governs China’s trademark system empowers you to better protect your brand. China’s Trademark Law, most recently revised in 2019 (with 2025 draft amendments pending), contains several critical articles that directly affect foreign brands. Let’s examine the most important provisions you should know.

Article 4: The Registration Requirement

“Any natural person, legal person or other organization who/which needs to acquire the exclusive right to use a trademark for the goods produced, manufactured, processed, selected or distributed thereby shall file an application for the registration of the goods trademark with the Trademark Office.”

This article establishes the fundamental principle: you must register to get trademark rights in China. Unlike countries that recognize common law trademark rights based on use alone, China requires formal registration. Furthermore, this article also addresses bad-faith filings by stating that applications must be filed by entities actually engaged in the relevant business activities.

Article 19: Combating Bad-Faith Applications

“Where the application for trademark registration is against the principle of good faith, the Trademark Office shall reject the application. Where trademark agencies know or should have known that the application is against the principle of good faith, they shall not provide agency services for the application.”

This powerful provision gives CNIPA authority to reject applications filed in bad faith. Moreover, it holds trademark agents accountable, requiring them to refuse representing clients engaged in trademark squatting. This article has become increasingly important as CNIPA intensifies its crackdown on malicious filings.

Article 29: First-to-File Priority

“Where two or more applicants apply for registration of identical or similar trademarks for the same or similar goods, the trademark that was applied for earlier shall be subject to preliminary examination and public announcement. Where applications are filed on the same day, the trademark that was used earlier shall be subject to preliminary examination and public announcement, while the other applications shall be rejected.”

This is the cornerstone of China’s first-to-file system. It clearly states that filing date determines priority. Notably, even if applications are filed on the same day, the applicant who used the trademark earlier gets priority. However, this use-based tiebreaker rarely comes into play because CNIPA’s system records applications down to the minute.

Article 31: Protection Against Unfair Registration

“No trademark application may prejudice the existing prior rights of others, nor may any person register in advance a trademark that has already been used by another party and has gained a certain degree of reputation through such use by taking advantage of unfair means.”

This article provides important protection for foreign brands. Even under the first-to-file system, you can challenge registrations that violate your prior rights or unfairly preempt your trademark. For example, if your brand has gained reputation in China through use (even without registration), you might be able to oppose someone else’s registration under this article. Additionally, this provision helps combat situations where business partners, distributors, or employees register your trademark behind your back.

Article 44: Grounds for Cancellation

“Where a registered trademark has been obtained through fraud or any other unfair means, the Trademark Office shall invalidate the registered trademark; other entities or individuals may request the Trademark Review and Adjudication Board to invalidate the registered trademark.”

This article gives you a pathway to challenge fraudulent or bad-faith trademark registrations even after they’re approved. If you discover that someone registered your trademark through deceptive means, you can file an invalidation action. This remedy remains available for five years after registration for most cases, though there’s no time limit for invalidating marks registered in bad faith.

Article 49: Non-Use Cancellation

“Where the registered trademark has not been used for three consecutive years without any proper reason, any entity or individual may apply to the Trademark Office for cancellation of the registered trademark.”

This provision is one of your most effective tools against trademark squatters. Since squatters typically don’t actually use the trademarks they register, you can apply to cancel them after three years of non-use. However, as discussed in the 2025 reforms section, the evidence requirements for proving non-use have become stricter. The trademark owner must provide concrete evidence of actual commercial use to defend against cancellation.

How These Articles Work Together

These legal provisions create a comprehensive framework that balances the efficiency of first-to-file registration with protections against abuse. While Article 29 establishes the basic first-to-file rule, Articles 19, 31, 44, and 49 provide various remedies when someone abuses the system.

For example, imagine this scenario: A Chinese company registers your brand name in bad faith (violating Article 19). You discover this during the opposition period and file an opposition citing your prior rights under Article 31. If you miss the opposition period, you can still file an invalidation under Article 44. And if the squatter doesn’t actually use the trademark, you can eventually cancel it under Article 49 after three years.

Understanding these legal tools empowers you to develop a comprehensive strategy for protecting your brand. However, navigating these provisions effectively often requires professional legal expertise. Working with experienced IP counsel ensures you use the right legal tools at the right time.

How YCIP Can Protect Your Brand: Practical Action Steps

At this point, you understand China’s first-to-file trademark system, the risks you face, and the legal framework that governs trademark rights. Now let’s talk about practical steps you can take right now to protect your brand—and how Yucheng IP Law (YCIP) can help you succeed.

Why Professional Representation Makes All the Difference

As we’ve discussed throughout this article, foreign companies cannot file trademark applications directly with CNIPA. You must work through a licensed Chinese trademark agent. However, not all agents are created equal. The quality of your representation can literally mean the difference between success and failure.

YCIP brings specialized expertise that goes far beyond simply submitting paperwork. With a proven track record of helping foreign brands navigate China’s complex IP landscape, YCIP offers comprehensive services tailored to international clients’ unique needs. Our founding attorney, Peter H. Li, leads a team of IP specialists with deep knowledge of patents, trademarks, copyrights, trade secrets, and all IP-related matters.

Comprehensive Trademark Services YCIP Provides

YCIP offers end-to-end trademark and copyright services designed specifically for foreign brands:

Pre-Filing Strategy and Clearance: Before filing anything, YCIP conducts thorough trademark searches across all relevant classes. We identify potential conflicts, assess registration prospects, and develop strategies to maximize your success rate. Additionally, we help you select appropriate classes and craft optimal trademark descriptions that balance broad protection with approval likelihood.

Application Preparation and Filing: YCIP handles all aspects of application preparation, ensuring that your materials meet CNIPA’s technical requirements. We prepare clear trademark specimens, accurate goods descriptions, and complete documentation packages. Then, we file your applications through CNIPA’s digital platform, securing your priority date as quickly as possible.

Prosecution and Response: If CNIPA issues an office action, YCIP’s experienced attorneys craft strategic responses that address examiners’ concerns while protecting your interests. Our deep understanding of CNIPA’s examination standards helps us develop arguments that resonate with trademark examiners. Learn more about our prosecution strategies.

Opposition and Cancellation Proceedings: When someone opposes your application—or when you need to challenge someone else’s trademark—YCIP provides aggressive representation. We gather evidence, prepare legal arguments, and represent you throughout administrative proceedings. Our success rate in these contentious matters speaks to our expertise in trademark dispute resolution.

Fighting Trademark Squatters Effectively

If you’ve already fallen victim to trademark squatting, YCIP offers specialized services to help you recover your brand:

• Invalidation Actions: We file comprehensive invalidation petitions citing bad faith, prior rights violations, and other grounds under Articles 44 and 31.
• Non-Use Cancellations: When trademarks haven’t been used for three years, we prepare detailed cancellation applications under Article 49, leveraging our knowledge of the 2025 reformed evidence requirements.
• Negotiated Buybacks: Sometimes purchasing the trademark is the most practical solution. YCIP’s attorneys negotiate on your behalf, working to achieve reasonable transfer terms without overpaying.
• Litigation Support: For complex disputes requiring court intervention, YCIP provides full litigation support, working with our network of litigation specialists across China.

Our comprehensive approach to fighting trademark squatting in China combines legal expertise with strategic thinking to achieve the best possible outcomes for our clients.

Proactive Brand Protection Strategies

Beyond individual trademark registrations, YCIP helps you develop comprehensive brand protection strategies:

Multi-Class Filing: We analyze your business model and recommend filing across multiple relevant classes to prevent others from registering similar marks in related fields. This defensive trademark strategy creates a protective barrier around your core brand.

Chinese Name Selection: Choosing the right Chinese name for your brand is crucial. YCIP helps you develop Chinese brand names that are legally protectable, culturally appropriate, and commercially appealing. We ensure your Chinese name doesn’t conflict with existing marks or have unintended negative meanings.

Priority Claims: Under international treaties like the Paris Convention, you can claim priority from your home country filing for up to six months. YCIP helps you leverage these priority rights to establish earlier filing dates in China, which can be decisive under the first-to-file system.

Monitoring and Enforcement: After registration, protecting your trademark requires ongoing vigilance. YCIP provides trademark monitoring services to detect infringing applications and unauthorized use. When we discover infringement, we take swift action through administrative complaints, customs enforcement, or civil litigation as appropriate.

Additional IP Services for Comprehensive Protection

Trademark protection is just one aspect of safeguarding your intellectual property in China. YCIP offers a full suite of IP services:

• Patent Services: Whether you need invention patents, utility models, or design patents, YCIP’s patent services help protect your innovations in China’s competitive market.
• Copyright Protection: We assist with copyright registration, licensing agreements, and enforcement actions to protect your creative works.
• Trade Secret Protection: YCIP helps you implement robust systems to protect confidential information, including drafting effective NDAs and advising on best practices for trade secret protection.
• Licensing and Transactions: Our licensing and transaction services help you commercialize your IP through strategic partnerships and licensing agreements.

Taking Action: Your Next Steps

The most important thing you can do right now is take action. Don’t wait until you’re ready to enter the Chinese market—by then, it might be too late. Here’s your immediate action plan:

Step 1: Get a Quick Quote: Visit YCIP’s website and submit the form to get a quote for your trademark application. This takes just a few minutes and provides you with clear pricing information.

Step 2: Schedule a Consultation: Contact YCIP to schedule a detailed consultation about your specific situation. During this consultation, we’ll assess your trademark protection needs, identify any immediate risks, and develop a customized strategy for protecting your brand in China.

Step 3: Conduct a Trademark Search: Before filing anything, get a comprehensive trademark search to identify potential conflicts and assess your registration prospects. This small investment upfront can save you significant time and money later.

Step 4: File Your Applications: Once your strategy is clear, file your trademark applications as quickly as possible. Remember, in China’s first-to-file system, every day counts. The sooner you file, the better protected you’ll be against trademark squatters and competitors.

Frequently Asked Questions

Conclusion: Protect Your Brand Today

China’s first-to-file trademark system presents both challenges and opportunities for foreign brands. While the “first to file wins” principle can seem harsh—especially if you’ve built brand equity elsewhere—it also provides a clear, predictable path to trademark protection. The key is understanding the system and acting quickly.

Remember these critical takeaways:

• Registration is mandatory—China doesn’t recognize trademark rights based solely on use
• File early—ideally before entering the market, to prevent trademark squatting
• Work with professionals—licensed Chinese agents are legally required and practically essential
• Monitor actively—protecting your trademark requires ongoing vigilance, not just registration
• Use legal tools—China’s Trademark Law provides various remedies against bad-faith filings

The statistics we’ve examined throughout this article paint a clear picture. With 94,000 foreign applications filed in early 2025 (up 7.4%), 470,000 bad-faith cases handled in 2023, and high-profile squatting cases costing companies millions, the message is unmistakable: trademark protection in China requires immediate, professional attention.

Moreover, with 2025’s regulatory reforms—including the unified digital platform, stricter non-use requirements, and proposed amendments targeting bad-faith filings—China is actively improving its trademark system. These changes benefit legitimate trademark owners who act proactively and work with experienced professionals.

Additional Resources and References

This article references information from the following authoritative sources for statistics and regulatory information:

• China National Intellectual Property Administration (CNIPA) – Official annual reports and statistics on trademark filings, registrations, and enforcement actions
• Registration China – Analysis of China’s trademark system and first-to-file principles
• Harris Sliwoski China Law Blog – Expert commentary on navigating trademark use in China
• Dennemeyer IP Blog – Updates on China’s trademark non-use cancellation guidance
• All Asya – Analysis of CNIPA’s annual trademark landscape reports for 2024-2025
• Patent PC – Insights on why first-to-file matters in China’s trademark system
• World Trademark Review – Coverage of latest developments in Chinese trademark law and bad-faith filing crackdowns