Quality over quantity: strategic implications for brand owners as new guidelines emphasise use-focused trademark environment

Well known as a first-to-file country, China seems to be fundamentally shifting its focus toward actual trademark use. This evolution is evident in anticipated amendments to China’s Trademark Law and, most critically, recent overhauls to non-use cancellation procedures.

Historically, China’s trademark registry has been notoriously crowded – packed with unused registrations and old filings from professional squatters operating alongside a vibrant marketplace of legitimate, active brands. This high traffic has long created major roadblocks for new filings. For years, the primary tool for clearing a path to registration was non-use cancellation – an administrative action allowing parties to petition for the removal of a mark that has gone unused for three consecutive years.

However, the CNIPA has fundamentally overhauled this system, turning what was once a low-cost, hands-off administrative action into a more rigorous, evidence-based procedure designed to curb malicious filings and promote a "use-oriented" IP environment.

Key changes to the non-use cancellation system

The recent guidelines introduce strict new requirements for both petitioners and trademark owners:

• Shift in the burden of proof – petitioners can no longer file "blind" non-use cancellation requests. They must submit evidence of non-use at the time of filing.

• Mandatory digital investigations – evidence typically requires screenshots from at least three major Chinese online platforms (eg, Baidu, Taobao and Douyin/WeChat), featuring multiple pages of timestamped search results along with a basic investigation into the trademark owner’s business status.

• Standing and identity – petitioners must identify themselves while demonstrating a legitimate commercial interest or a justifiable reason for seeking the cancellation.

• Higher defence standards – respondents defending their marks must reply to claims with a "complete and verifiable evidentiary chain" proving legitimate commercial use.

• Proactive CNIPA enforcement – while rarely seen to date, the CNIPA now holds the ability to proactively cancel trademarks that have remained unused for three consecutive years or have become generic.

• Penalties for abuse – to curb malicious filings, agencies filing a high volume of non-use cancellations without legitimate client instructions can face penalties, and abnormal applicants may be placed on an official CNIPA watchlist.

Strategic implications for brand owners

While a clearer registry is excellent news for the long-term health of the market, it introduces immediate strategic and budgetary implications for brand owners:

• Higher clearance and prosecution budgets – budgeting for higher costs when filing new trademark applications is now wise as clearing a path for a new registration may require more upfront investigation and searches if and when cited marks result in rejections.

• Stricter internal evidence management – brand owners must adjust internal processes to ensure proper use evidence is available when needed. Stricter evidence standards mean a continuous chain of evidence proving legitimate use is a survival requirement, including sales contracts, advertising materials and e-commerce records.

• Rethinking future defensive filings – registrations covering broader subclasses than used have always carried a risk of non-use cancellation, but under the new regime proof of use will need to be more comprehensive. As China continues down a use-forward path, actual use may even become a factor at the time of filing in the future.

Market entry blueprint: critical IP advice for newcomers in China

For brand owners entering the Chinese market for the first time, this shifting landscape requires a proactive, localised IP strategy. If you are preparing for market entry, prioritise the following steps.

Conduct subclass mapping early

Unlike many other jurisdictions, China uses a unique, highly rigid sub-classification system. A trademark registered in one subclass may not protect your brand in a closely related subclass.

Map your core products and services directly to China’s specific subclass system before launching, ensuring your applications cover the exact sub-categories where you intend to do business immediately.

Register a Chinese-equivalent mark

Do not rely solely on your English or Latin trademark. If you do not choose your own Chinese brand name, the local market, consumers or counterfeiters will choose one for you.

Develop and register a Chinese character equivalent (whether a literal translation, a phonetic transliteration or a conceptual adaptation) simultaneously with your primary brand mark.

Document your market entry from day one

Because the CNIPA requires a "verifiable chain of use", your pre-launch and launch activities are highly valuable IP assets.

Save and catalogue all localised marketing assets, social media campaigns (eg, on RedNote, TikTok or WeChat), customs/import documentation, distribution agreements with local partners and initial e-commerce store setups. This data also serves as your shield if a squatter attempts to block your entry.

Audit prior registrations before you launch

Because the registry is crowded, there is a high likelihood that a squatter or similar brand owns a block on your mark.

Run comprehensive availability searches early. If you find a blocking mark that appears inactive, budget for the new, evidence-heavy non-use cancellation process as part of your market-entry costs, rather than treating it as an unexpected enforcement surprise.

Key takeaways

China is successfully migrating from a filing culture focused on quantity to an approach that prioritises quality registrations. It will become much harder for bad-faith parties to "shake down" legitimate owners by filing frivolous non-use cancellations. Ultimately, the removal of unused marks will yield a clearer registry and make it easier to file legitimate trademarks – but only for brand owners that treat trademark use as a core operational discipline and certainly there will be some growing pains as things change.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.