One of the most impor tant changes in the revised Trademark Law is to explicitly set forth “good faith” as one of the fundamental principles for registration and use of a trademark in China. Fighting against trademark squatters is expected to be less burdensome under the revised Trademark Law, which comes into force on 1 May 2014. It would be advisable to consider the following key points when a Western company deals with trademark squatters under the revised Trademark Law.
Is the trademark squatter a trademark agent? As of June 2013, more than 17,000 firms in China are qualified to act as a local agent to file trademark applications with China’s Trademark Office (TMO). In practice, it is not uncommon that trademark agency firms register a large number of trademarks in their own names and blackmail the actual owners to purchase them back.
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