China noticed that a small number of applicants tried to register trademarks beyond the normal business needs and transfer the hoarded trademarks to the actual users at a high price for seeking illegitimate benefits.

For example, Guangzhou 4399 Information Technology Co., Ltd. applied for more than 9,000 trademarks, 210 of which were opposed by different rights holders and the Trademark Office (TMO) handled 39 trademarks in question; Shanghai Wuyue Information Technology Co., Ltd. filed more than 500 trademark applications, 77 of which were opposed by different rights holders, and the TMO dealt with the 13 trademarks in question. In the above cases, the TMO rejected the challenged marks.

Both Fan Yali, deputy director of Division of Trademark Examination Administration of the TMO and Cai Qiongyan, director of the Comprehensive Division of the Trademark Review and Adjudication Board (TRAB), spoke publicly pointing out that malicious hoarding of trademarks is a key target of trademark administrative authorities.

The authorities have adopted intelligent analysis to classify acts of squatting with bad faith and would take hoarding trademark resources, frequently squatting well-known trademarks, damaging legitimate rights and interests of trademark right holders as reference to maliciousness determination.

Tao Kaiyuan, vice president of the Supreme People's Court, also noted at this year's National Court of Intellectual Property Trial Work Conference that the People's Court should curb malicious hoarding behavior of trademark registration based on the spirit of the intent of real use of trademark registration.

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