Defensive Trademark Strategies to Protect Your Brand in China

If you’re doing business in China or planning to expand there, you’re walking into the world’s most competitive trademark environment. With over 47.62 million valid trademark registrations by the end of 2024, China leads global trademark activity. However, this also means your brand faces serious risks from copycats and trademark squatters.

A defensive trademark strategy in China isn’t just smart business—it’s essential survival. Think of it like buying insurance for your brand before trouble strikes. Moreover, with foreign trademark applications rising 7.4% in the first half of 2025, international businesses are clearly recognizing this need.

What is Defensive Trademark Registration in China?

Simple Definition That Anyone Can Understand

Imagine you own a popular ice cream brand called “Sweet Dreams.” Additionally, you want to make sure no one else can start a “Sweet Dreams” clothing line, toy store, or restaurant. Therefore, you register your brand name not just for ice cream, but also for these other categories—even though you don’t plan to use them right away.

This is exactly what defensive trademark registration means. Furthermore, it’s like putting up invisible fences around your brand name to keep copycats away. In simple terms, you’re claiming your territory before someone else does.

How Defensive Trademarks Work in China’s System

China operates on a “first-to-file” system, which means whoever files the trademark application first gets the rights—regardless of who used the brand first elsewhere. Consequently, this system makes defensive registration absolutely crucial for foreign businesses.

“In China’s first-to-file system, rights are granted to the earliest filer regardless of prior use elsewhere. This makes defensive registration not just helpful, but essential for brand protection.”

Unlike some countries that have special rules for defensive marks, China treats them like regular trademark applications. Therefore, they must follow the same procedures and requirements. However, this also means they provide the same strong legal protection once registered.

Key Differences from Regular Trademark Registration

Regular trademark registration covers the products or services you’re currently selling. In contrast, defensive trademark registration covers additional areas where you might expand or where competitors might try to confuse customers.

For example, if you’re a software company, your regular trademark covers computer software. Meanwhile, your defensive trademarks might cover:

• Related categories: Computer hardware, mobile apps, cloud services
• Expansion areas: Training services, consulting, technical support
• High-risk categories: Entertainment, advertising, retail services

This approach creates multiple layers of protection around your brand. As a result, competitors find it much harder to create confusingly similar businesses.

Why Your Business Needs a Defensive Trademark Strategy in China

The Scale of China’s Trademark Squatting Problem

China’s massive market attracts both legitimate businesses and bad actors. Unfortunately, trademark squatting—where people register famous brands hoping to sell them back or exploit their reputation—is a serious problem.

These numbers reveal both the opportunity and the risk. While more foreign businesses are recognizing the importance of trademark protection in China, the sheer volume of applications creates a highly competitive environment.

Real Costs of Not Having Protection

Without defensive trademark registration, businesses face several expensive problems:

Legal Battle Costs: Fighting trademark squatters can cost $50,000-200,000 per case. Moreover, legal proceedings often take 2-3 years to resolve. In contrast, defensive registration costs only $300-800 per trademark class.

Lost Market Opportunities: When competitors register similar marks, they can block your expansion into new product categories. Consequently, you might lose entire market segments.

Brand Dilution: Copycat products damage your reputation and confuse customers. Furthermore, once counterfeit products flood the market, removing them becomes extremely difficult.

Licensing Revenue Loss: If someone else owns trademarks in categories you want to license, you lose potential revenue streams.

China’s First-to-File System: Why Speed Matters

China’s trademark law follows Article 31, which states that applications filed earlier have priority over later ones. Therefore, even if you’ve used your brand globally for decades, someone who files first in China gets the rights.

This legal framework makes defensive registration not just advisable, but necessary for comprehensive brand protection. However, Article 4 also provides protection against truly malicious filings, which helps legitimate businesses.

Step-by-Step Guide: How to Register Defensive Trademarks in China

Phase 1: Comprehensive Trademark Search and Analysis

Before filing any defensive trademarks, you must thoroughly research the landscape. This critical first step can save thousands of dollars and months of delays.

1. Use CNIPA’s Official Database

Start with the China National Intellectual Property Administration database. Search for your exact brand name, similar variations, and Chinese translations. Additionally, check both simplified and traditional Chinese characters.

2. Professional Search Services

While basic searches are free, professional search services provide deeper analysis. They can identify:

• Phonetically similar marks in Chinese
• Visually similar logos or designs
• Pending applications that might conflict
• Trademark families owned by potential squatters

3. Analyze Trademark Classifications

China uses the Nice Classification system with 45 classes. Study which classes cover your current business and identify strategic defensive classes. For instance, if you’re in consumer electronics (Class 9), consider defending in:

• Class 35 (Retail and advertising services)
• Class 42 (Technical services and software)
• Class 37 (Installation and repair services)

Phase 2: Strategic Filing Plan Development

Creating an effective defensive trademark strategy in China requires careful planning. You can’t just file everywhere—that would be expensive and potentially seen as bad faith under Article 4.

Priority Classification System:

Budget Planning:

Based on current market rates, plan for these costs:

• Government fees: RMB 270-540 per class per mark
• Attorney fees: $200-400 per application
• Search and analysis: $300-800 per comprehensive search
• Translation services: $100-200 per mark (if needed)

Phase 3: Application Preparation and Submission

Once your strategy is set, it’s time to prepare and submit your applications. This phase requires precision because mistakes can lead to rejections or delays.

Document Preparation Checklist:

1. Trademark representation: High-quality image files (JPG format, 300 DPI minimum)
2. Applicant information: Complete business registration details
3. Goods and services list: Precise descriptions matching Nice Classification standards
4. Priority claims: If claiming priority from other countries
5. Power of attorney: Authorization for your Chinese trademark attorney

Filing Methods:

Direct Filing with CNIPA: Foreign applicants must use a qualified Chinese agent. This is the most common and cost-effective method for defensive strategies.

Madrid Protocol: If your home country is a Madrid Protocol member, you can file an international application designating China. However, this method costs more and offers less flexibility for defensive strategies.

Our team at YCIP specializes in trademark services and can handle all aspects of your defensive filing strategy. We’ve successfully filed over 10,000 trademark applications and understand the nuances of defensive registration.

Key Legal Requirements Under China’s Trademark Law

Understanding Article 4: The Good Faith Requirement

China’s 2023 amended Trademark Law strengthened protections against bad-faith filings through Article 4. This is actually good news for defensive trademark strategies because it protects legitimate businesses from malicious squatters.

What This Means for Defensive Strategies:

Article 4 requires “good faith” but doesn’t prohibit defensive registration. However, you must demonstrate legitimate business intent. Therefore, when filing defensive trademarks, document your business plans and expansion strategies.

Best Practices to Comply with Article 4:

• Limit filings to reasonable classes: Don’t file in obviously unrelated categories
• Document business rationale: Keep records explaining why each class protects your business
• Show expansion plans: Demonstrate how defensive classes relate to potential business growth
• Avoid excessive filings: Don’t file hundreds of applications without clear justification

Article 13: Well-Known Trademark Protection

If your brand achieves “well-known” status in China, Article 13 provides extraordinary cross-class protection. This is the strongest form of defensive protection available.

Achieving Well-Known Status:

Well-known status isn’t automatic—you must prove it through evidence such as:

• Market recognition surveys and consumer awareness data
• Sales volume and market share in China
• Advertising expenditure and media coverage
• Geographic scope of trademark use
• Duration and extent of trademark registration and use

Our trademark specialist Peter H. Li has successfully helped clients achieve well-known status, providing the ultimate defensive protection.

Article 49: Non-Use Cancellation Requirements

This is perhaps the most important article for defensive trademark holders to understand. Article 49 allows others to cancel your trademark if you don’t use it for three consecutive years.

Defending Against Non-Use Cancellation:

Since 2025, CNIPA has raised evidence standards for non-use defenses. However, defensive trademark holders can still protect their rights by:

1. Demonstrating Intent to Use:

• Business expansion plans and investment documents
• Product development timelines and R&D expenditure
• Market research and feasibility studies
• Licensing negotiations and partnership discussions

2. Showing Minimal Commercial Use:

• Limited product launches or test marketing
• Promotional materials and advertising campaigns
• Trade show participation and business development
• Online presence and social media marketing

3. Justified Reasons for Non-Use:

• Regulatory approval delays (especially for pharmaceuticals, food, medical devices)
• Force majeure events (such as pandemic-related disruptions)
• Import/export restrictions or government policy changes
• Technical development delays or supply chain issues

Our litigation expert Tony XU specializes in defending against non-use cancellation actions and has successfully protected hundreds of defensive registrations.

Common Mistakes to Avoid in Defensive Trademark Registration

Filing Too Broadly Without Business Justification

The biggest mistake businesses make is filing defensive trademarks in every possible class without clear business rationale. This approach creates several problems:

Why Over-Filing Backfires:

Under Article 4’s good faith requirement, excessive filings can be rejected as malicious applications. Moreover, CNIPA examiners now scrutinize applications more carefully, especially from foreign applicants filing in numerous unrelated classes.

The Smart Alternative:

Instead of filing everywhere, focus on strategic classes based on:

• Business expansion plans: Where you realistically might expand
• Competitor activity: Where copycats commonly operate
• Brand licensing potential: Categories with licensing opportunities
• Consumer confusion risks: Classes where similar marks could confuse customers

Ignoring Chinese Language Variations

Many foreign businesses make the critical error of only registering their English brand names while ignoring Chinese translations, transliterations, and phonetic equivalents.

Why Chinese Variations Matter:

Chinese consumers often refer to foreign brands by Chinese names, either official translations or popular nicknames. If you don’t register these variations, competitors can easily create confusion.

Types of Chinese Variations to Register:

1. Official Chinese Name: Your chosen Chinese brand name
2. Phonetic Transliterations: Chinese characters that sound like your English name
3. Direct Translations: Chinese characters that mean the same thing as your English name
4. Popular Nicknames: Chinese names commonly used by consumers or media
5. Simplified vs. Traditional: Both character systems if relevant to your markets

For example, McDonald’s registers multiple variations including 麦当劳 (Màidāngláo – phonetic) and related variations. This comprehensive approach prevents competitors from exploiting any Chinese language version of their brand.

Our team includes native Chinese speakers who can identify all relevant linguistic variations and help develop a comprehensive Chinese trademark registration strategy.

Poor Timing and Sequencing

Another common mistake is poor timing when filing defensive applications. This can lead to missed opportunities and increased costs.

Sequential Filing Strategy:

Phase 1 (Immediate): Core business classes and exact brand matches

Phase 2 (3-6 months): Adjacent business categories and major Chinese variations

Phase 3 (6-12 months): Strategic defensive classes and minor variations

Phase 4 (Ongoing): Monitor and file additional protection as business evolves

This phased approach ensures you secure the most critical protection first while spreading costs over time. Additionally, it demonstrates good faith business development rather than speculative filing.

Inadequate Documentation and Record-Keeping

Poor documentation is a major vulnerability for defensive trademark holders, especially when facing non-use cancellation actions under Article 49.

Essential Documentation to Maintain:

Our consultation and litigation support team helps clients establish proper documentation systems from the beginning, preventing future legal challenges.

Success Stories: How Defensive Strategies Saved These Brands

Case Study 1: Global Technology Brand Prevents Smartphone Squatting

A major international technology company faced a common problem when entering the Chinese market. Although they were primarily known for computer software, Chinese competitors were registering similar marks in smartphone and electronics categories.

The Challenge:

The company’s core business was software development (Class 9), but their brand name was being registered by local companies in mobile devices, electronics accessories, and retail services. These registrations created barriers to expansion and consumer confusion.

The Defensive Strategy:

Working with YCIP, the company implemented a comprehensive defensive filing strategy:

• Strategic class selection: Filed in Classes 9 (electronics), 35 (retail services), 42 (technical services)
• Chinese variations: Registered both phonetic transliteration and meaning-based translation
• Timing coordination: Filed all applications simultaneously to prevent competitors from reacting
• Evidence preparation: Documented expansion plans into mobile and hardware markets

The Results:

Within 18 months, all defensive trademarks were successfully registered. When the company later launched mobile apps and hardware accessories in China, they had complete brand protection. Additionally, they successfully opposed three copycat applications that attempted to register similar marks.

Cost Comparison:

• Defensive registration cost: $4,200 for comprehensive protection
• Avoided litigation costs: Estimated $150,000+ in opposition and cancellation proceedings
• Market access value: Enabled $50M+ product launch without legal obstacles

Case Study 2: Fashion Brand Defeats Well-Known Mark Challenge

An established European fashion brand with 50+ years of history faced a sophisticated trademark squatter who had registered their exact brand name across multiple fashion-related classes in China.

The Challenge:

The squatter not only registered the trademark but also started using it on products, making it difficult to prove bad faith. Furthermore, they filed a non-use cancellation action against the brand’s existing Chinese registration, claiming the European company wasn’t using the mark in China.

The Defensive Counter-Strategy:

1. Well-known mark claim: Assembled evidence of global recognition and Chinese consumer awareness
2. Bad faith documentation: Proved the squatter had no legitimate business in fashion
3. Usage evidence compilation: Documented limited but genuine commercial activity in China
4. Cross-class defensive filing: While fighting the squatter, filed additional defensive marks in adjacent categories

The Legal Victory:

Using Article 13 (well-known trademark protection), the brand successfully invalidated the squatter’s registrations across all classes. The Beijing IP Court ruled that the registrations were made in bad faith and likely to cause consumer confusion.

Moreover, the brand’s defensive registrations in accessories, retail services, and online commerce were approved, creating a protective barrier against future squatting attempts.

Case Study 3: Pharmaceutical Company Navigates Regulatory Delays

A pharmaceutical company faced the unique challenge of maintaining trademark rights while waiting for drug approval—a process that can take 3-5 years in China.

The Challenge:

Under Article 49, trademarks can be cancelled for non-use after three years. However, pharmaceutical companies often cannot use their trademarks until products receive regulatory approval, which can take longer than the three-year grace period.

The Defensive Approach:

Multi-layered protection strategy:

• Core trademark: Registered the drug name in pharmaceutical classes
• Defensive variants: Registered related compound names and brand variations
• Service marks: Filed for research and development services to establish some usage
• Documentation system: Maintained detailed records of R&D investment and regulatory progress

Defending Against Non-Use Cancellation:

When competitors filed non-use cancellation actions, the company successfully defended by demonstrating:

• Substantial R&D investment in China
• Active regulatory approval processes
• Justified reasons for delayed commercial launch
• Continuous trademark monitoring and enforcement activities

The Outcome:

All trademark registrations were maintained through the 5-year approval process. When the drugs finally launched, the company had complete trademark protection and no competitor interference. The defensive strategy proved essential because competitors had attempted to register similar pharmaceutical trademarks during the waiting period.

Our patent and litigation specialist Tingfei Wang has extensive experience helping pharmaceutical and biotech companies navigate these complex trademark and regulatory challenges.

Frequently Asked Questions About Defensive Trademarks in China

What is a defensive trademark in China?

A defensive trademark in China is a registration filed primarily to protect against infringement or squatting rather than for immediate commercial use. Unlike some countries with specific defensive trademark categories, China treats these as standard registrations under the first-to-file system.

Defensive trademarks help prevent copycats by blocking similar registrations in related or unrelated business categories. However, they must comply with Article 4’s good faith requirement and can face non-use cancellation under Article 49 after three years.

Why is trademark registration necessary in China?

Trademark registration is essential in China because of the first-to-file rule under Article 31, which grants exclusive rights only to the first applicant regardless of prior use elsewhere. Without registration, even globally famous brands risk:

• Trademark squatting: Bad actors registering your brand to sell it back or exploit its reputation
• Market exclusion: Being unable to sell products or services under your own brand name
• Counterfeiting: Having no legal recourse against fake products using your brand
• Licensing limitations: Being unable to authorize legitimate partners to use your trademark

With 47.62 million valid registrations by end of 2024 and 529,370 IP infringement cases in 2024, the competitive and enforcement environment makes registration absolutely critical.

How do I register a trademark in China as a foreigner?

Foreign applicants must work with a qualified Chinese trademark agent to register trademarks in China. The process involves:

1. Comprehensive search: Check CNIPA database for conflicts
2. Application preparation: Prepare trademark image, goods/services description, and applicant information
3. Agent appointment: Execute power of attorney for Chinese representative
4. Filing submission: Submit application to CNIPA with required fees
5. Examination process: Wait 9-12 months for preliminary examination
6. Publication period: 3-month opposition period if initially approved
7. Registration certificate: Issued if no successful oppositions

Foreign applications increased 7.4% in the first half of 2025, showing growing international recognition of China’s market importance. Our complete trademark registration guide provides detailed step-by-step instructions.

What are the risks of not using a registered trademark in China?

Under Article 49, registered trademarks can be cancelled for non-use after three consecutive years. Since 2025, CNIPA has raised evidence standards, making defenses more challenging. Specific risks include:

Legal Risks:

• Non-use cancellation: Competitors can file cancellation actions
• Loss of exclusive rights: Cancelled trademarks become available to others
• Enforcement difficulties: Hard to defend against infringers without valid registration
• Re-registration barriers: Someone else might register the mark after cancellation

Business Risks:

• Market vulnerability: Competitors can launch similar products
• Brand dilution: Multiple parties using similar marks confuse consumers
• Investment loss: All registration costs and brand-building efforts wasted
• Strategic disadvantage: Inability to prevent competitive trademark registrations

However, non-use can be justified by regulatory delays, force majeure events, or documented business development plans. Our litigation team successfully defends against non-use cancellations by presenting proper evidence and legal arguments.

How can I fight bad-faith trademark squatting in China?

China provides several legal mechanisms to combat trademark squatting under Article 44 and other provisions:

Opposition Proceedings:

If the squatter’s trademark is still in the 3-month publication period, file an opposition citing:

• Prior rights in your home country or internationally
• Bad faith registration intent
• Likelihood of consumer confusion
• Well-known trademark status (if applicable)

Invalidation Actions:

For registered squatter trademarks, file invalidation proceedings within 5 years of registration (no time limit for bad faith cases) based on:

• Article 44: Prohibition of bad faith registrations
• Article 13: Well-known trademark protection
• Article 31: Prior rights violations

Non-Use Cancellation:

If the squatter hasn’t used the trademark for three years, file a non-use cancellation action. This is often the most effective approach since many squatters register marks without actually using them.

Criminal Enforcement:

In cases involving commercial use of squatted trademarks, criminal enforcement through SAMR (State Administration for Market Regulation) can result in fines and criminal penalties.

Our litigation support team has successfully recovered hundreds of squatted trademarks using these enforcement mechanisms. The key is acting quickly and choosing the right legal strategy based on specific circumstances.

Conclusion: Secure Your Brand’s Future in China Today

China’s massive market offers incredible opportunities, but it also presents serious trademark risks that can destroy years of brand-building efforts. With 47.62 million valid trademark registrations and hundreds of thousands of new filings each year, the competitive landscape demands proactive protection.

A defensive trademark strategy in China isn’t optional—it’s essential business insurance. The cost of prevention is always lower than the cost of cure. While defensive registration might cost $2,000-5,000 for comprehensive protection, fighting trademark squatters can cost $50,000-200,000 per case with no guarantee of success.

Key Takeaways for Your Defensive Strategy:

• Act quickly: China’s first-to-file system rewards speed over prior use
• Plan strategically: File in relevant classes with documented business rationale
• Include Chinese variations: Register transliterations and translations of your brand
• Maintain proper documentation: Prepare for potential non-use challenges
• Monitor continuously: Watch for squatters and new trademark applications
• Work with experts: Chinese trademark law requires specialized knowledge and local representation

The statistics speak for themselves: foreign trademark applications in China increased 7.4% in the first half of 2025, while IP infringement cases reached over 529,000 in 2024. International businesses are recognizing both the opportunity and the risk of the Chinese market.

Don’t wait until it’s too late. Every day without trademark protection is a day your competitors can register similar marks and block your market entry. The brands that succeed in China are those that invest in comprehensive IP protection before they need it.

Ready to protect your brand with a defensive trademark strategy? YCIP has protected thousands of international brands with our proven approach combining legal expertise, strategic planning, and cost-effective execution. Our team of experienced attorneys, including trademark specialist Peter H. Li and litigation expert Tony XU, provides comprehensive support from initial search through registration and enforcement.

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About The Author

Peter H. LI

Peter is passionate about writing and sharing insights on China’s intellectual property landscape. Through his articles, he has helped many clients understand IP issues in China, earning their trust and collaboration. Leading an experienced IP team, Peter advises clients from startups to Fortune 500 companies on patents, trademarks, and global branding, helping them protect their IP and grow their businesses.

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