By Abhishek Chandok and Priyanka Gambhir
Brand owners operating in China have long contended with a familiar risk: a competitor registers a mark strikingly similar to theirs, not to use it, but to extract a payout when the rightful owner comes calling. For decades, gaps in China’s trademark system allowed this kind of speculative filing to flourish. That is about to change.
China operates the largest trademark system in the world. Nearly half of all global filings are made there, and its register holds approximately 50 million active trademarks. For over four decades, this system has been governed by a law first enacted in 1982. On June 26, 2026, China’s lawmakers approved the most extensive revision that law has ever undergone. From January 1, 2027, the rules governing trademark protection in China will change for every brand owner with interests there.
| Adopted | June 26, 2026 — 23rd Session, Standing Committee of the 14th National People’s Congress |
| Effective Date | January 1, 2027 |
| Scope of Revision | Expands from 73 Articles in 8 Chapters to 87 Articles in 9 Chapters |
| Significance | First comprehensive, systematic overhaul since the law’s original enactment in 1983 |
A Law Four Decades in the Making
This is only the fifth time China has amended its Trademark Law since 1982. Each revision reflects how the country’s approach to brand protection has evolved, from a basic administrative framework to a system built for a modern, digital economy:
- 1993: Service marks became registrable for the first time, extending protection to the banking, hospitality, and retail sectors, alongside stricter measures against infringement as China’s consumer market expanded.
- 2001: Following China’s accession to the WTO, the law was aligned with the TRIPS Agreement, foreign applicants gained eligibility to file, and three-dimensional shapes and colour combinations became registrable.
- 2013: Multi-class applications and statutory examination deadlines simplified the filing process, sound marks became registrable, and the principle of “honesty and good faith” was written into the law to curb early trademark hijacking.
- 2019: The law introduced its first targeted measures against bad-faith filing and hoarding, supported by heavier punitive damages for wilful, repeat infringers.
- 2026: The fifth and most comprehensive amendment to date, nearly doubling the law in size, and the subject of this advisory.
Eight Key Changes Under the Fifth Amendment
The revised law runs to 87 articles across nine chapters, almost double its previous size. Beneath the legal language, the underlying intent is clear: China’s trademark system will no longer reward brands simply for filing first. Genuine use, verifiable digital evidence, and good faith now carry significantly more weight. The following eight changes are of particular relevance to brand owners.
- Dynamic Marks Are Now Registrable
Motion graphics, animated logos, and app loading transitions may now be registered as trademarks, provided they are capable of distinguishing the source of goods or services. Motion effects that arise from the nature of the goods themselves, that are necessary to achieve a technical result, or that constitute the substantive value of the goods remain excluded from registration. - Digital Use Is Now Formally Recognized
The revised law expressly provides that use of a trademark through the internet or other information networks constitutes valid trademark use. Sales through e-commerce platforms, activity on social media, and use on a company website can now be relied upon both to establish genuine use and to support enforcement action against online infringers. - A Shorter Opposition Window
The period for opposing a published mark has been reduced from three months to two. For international brand owners relying on global watch services, this leaves considerably less time to gather evidence, arrange translations, secure internal sign-off, and instruct local counsel. Monitoring and escalation procedures should be reviewed accordingly. - Proactive Cancellation of Idle Marks
Previously, an unused trademark could be cancelled only if challenged by a third party. Under the revised law, the CNIPA is empowered to proactively cancel a registration left unused for three consecutive years without justifiable reason. Holding a trademark defensively, without genuine use, is no longer a sustainable long-term strategy. - Broader Protection for Well-Known Trademarks
Well-known marks, whether registered or unregistered, are now entitled to cross-class protection against dilution, extending protection against imitation even in unrelated industries. To assist Chinese brand owners contending with squatting abroad, the CNIPA may also issue official well-known mark recognition certificates for use in overseas litigation. - Stricter Penalties for Bad-Faith Filings
Applications filed without genuine intent to use, and which clearly exceed normal business needs, will now be rejected outright at the examination stage. Bad-faith filing may result in an official warning and a fine of up to RMB 100,000. This is not a theoretical measure: in the first half of 2023 and again in the first half of 2024, Chinese authorities took enforcement action against more than 200,000 bad-faith trademark filings in each period. - Regulating Misleading Use of Registered Trademarks
Using a registered trademark in a manner that misleads the public — such as chargers marketed as “120W” that deliver substantially less power, or noodles labelled “handmade” despite being machine-produced — is now expressly prohibited. Regulators may order corrective action within a specified period; fines can reach up to five times illegal turnover where turnover exceeds RMB 50,000, or up to RMB 250,000 where it does not. Failure to correct the violation within the prescribed period may result in cancellation of the registration. - Curbing Malicious Trademark Litigation
The revised law establishes a clear legal basis for addressing trademark litigation brought in bad faith, including collusive litigation and the fabrication of material facts. This provision is intended to deter the use of litigation as a tool for harassment or anti-competitive conduct, while preserving the legitimate exercise of trademark rights.
What This Means for Your Brand Portfolio
These eight changes point to a single underlying shift: China’s trademark system now rewards brand owners who actively use, monitor, and defend their marks, rather than those who merely register them. We recommend prioritizing the following:
- Act quickly on infringements. The shortened two-month opposition window leaves considerably less room for delay. Internal approval processes and coordination with local counsel should be streamlined to respond effectively to bad-faith filings.
- Review your existing portfolio. With the CNIPA now empowered to proactively cancel long-idle marks, passive defensive holdings are a liability. Priority should be given to documenting genuine use, particularly across e-commerce and social media, both of which are now formally recognized as valid evidence.
- Secure new digital assets. Brand owners should review their modern branding assets. The introduction of registrable dynamic marks means animated logos, app transitions, and motion graphics can, and should, be secured as part of a brand’s digital footprint.
Pratyush Srivastava, Junior Associate Advocate at S.S.Rana & Co. has assisted in the research of this article.
This advisory is for general informational purposes only and does not constitute legal advice. The new Trademark Law will not take effect until January 1, 2027; implementing regulations and supporting measures are expected from the CNIPA in the interim. We will continue to monitor developments and provide updates.