What you need to know about trademark squatting

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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