Made in China, Protected in China: Preparing for China’s new Trade Mark Law

For many UK businesses, China has traditionally been viewed as a significant commercial opportunity and also a significant intellectual property risk.

China remains one of the world’s largest manufacturing hubs and, historically, many businesses have associated the jurisdiction with counterfeit products, trade mark squatting and having a notoriously difficult enforcement processes. This is compounded if you aren’t well versed in Chinese intellectual property law.

However, recent developments suggest that China’s approach to intellectual property protection is evolving. With a new Trade Mark Law due to come into force on 1 January 2027 along with the Chinese courts increasingly demonstrating a willingness to enforce rights in favour of brand owners, now is a good time to reconsider how your business approaches brand protection in China.

In this article, we’ll look at:

• The key changes introduced by China’s revised Trade Mark Law.
• Why the Slayer Espresso appeal decision matters for brand owners.
• The enforcement options already available in China.
• What your business should be doing to prepare for the new Trade Mark Law.

What is changing under the new Trade Mark Law?

The revised Trade Mark Law represents one of the most significant updates to China’s trade mark regime in recent years. A central theme of the reforms is the promotion of genuine commercial use whilst making life more difficult for bad-faith filers and trade mark “hoarders”.

Among the most notable changes are:

• Stronger measures against applications filed without a genuine intention to use the mark.
• Increased emphasis on actual trade mark use.
• Enhanced powers to challenge and remove improper registrations.
• Expanded protection for non-traditional marks such as dynamic marks.
• Greater support for recognised and influential brands.

For businesses that have previously encountered trade mark squatters or defensive filings in China, these changes are likely to be welcomed.

One of the more interesting changes concerns the treatment of influential and well-known brands.

The new regime includes mechanisms through which Chinese authorities may formally recognise that a mark has achieved a significant reputation amongst the relevant public in China. This will assist with overseas trade mark disputes or proceedings. The intention is that you can record evidence of their reputation at the Chinese Intellectual Property Office so that in enforcement or opposition proceedings you do not need to re-prove your brand’s reputation saving you time and money whilst streamlining enforcement.

If your business has an established Chinese presence, you should start considering what evidence you may need to demonstrate market recognition, reputation and influence. Depending on the circumstances, that evidence could include:

• Sales figures and market share information;
• Advertising and promotional expenditure;
• Press coverage and industry recognition;
• Marketplace and e-commerce presence;
• Distributor and customer information;
• Evidence of previous enforcement activity;
• Licensing and collaboration arrangements; and
• Unregistered but famous trade marks.

Importantly, gathering this evidence before a dispute arises is far easier than trying to reconstruct it later, and doing it for every individual dispute. This allows brand owners to incur the cost once rather than in each enforcement action.

With the new law taking effect on 1 January 2027, businesses that prepare supporting material in advance may be able to take advantage of the enhanced protections available under the new regime at the earliest opportunity. This is an area where we can help you assess existing evidence, identify gaps and prepare materials ahead of implementation.

What does the Slayer Espresso decision tell us?

Legislative reform is only ever part of the picture. The courts also play a crucial role in shaping confidence in a legal system based on the enforcement of legal rights.

A recent positive example is the Chinese Court of Appeal’s decision in favour of Slayer Espresso. The court upheld findings of unfair competition, recognised trade mark infringement and increased damages from RMB 800,000 to RMB 2 million. The court also ordered the immediate cessation of infringing activities. This represents an exceptionally strong stance on enforcement from the court.

Particularly noteworthy was the court’s willingness to protect not only registered trade marks but also distinctive product design elements associated with the Slayer Espresso machines. Even though the signs used by the defendants were not identical, the court concluded that consumers could wrongly assume a commercial connection with the Slayer brand.

For rights holders, the case provides a useful litmus test that Chinese courts are increasingly willing to engage with sophisticated intellectual property arguments and grant meaningful remedies where infringement is established.

What protection is already available in China?

Whilst attention is naturally focused on the upcoming reforms, you should not overlook the enforcement mechanisms already available that you might not have engaged with to previously.

Depending on the circumstances, rights holders can pursue administrative enforcement, civil litigation, customs action and, in some cases, criminal enforcement against counterfeiters. China maintains customs recordal systems which can allow authorities to identify and seize suspected counterfeit goods at the border based upon registered Chinese trade marks.

If your business undertakes manufacturing in China or exporting products through Chinese supply chains, customs recordals can be a particularly effective tool. They provide an opportunity to intercept infringing goods before they leave the country rather than pursuing enforcement only after products have entered overseas markets.

What does this mean for your business?

The days of treating China solely as an IP risk jurisdiction may be coming to an end. That does not mean enforcement is simple. Early registration remains critical and you should continue to take a proactive approach to filing, monitoring and enforcement. However, the combination of legislative reform and recent court decisions suggests China is becoming an increasingly valuable forum for protecting intellectual property rights.

With the revised Trade Mark Law due to take effect on 1 January 2027, now is an ideal time to review your Chinese trade mark portfolio, assess the strength of your evidence of brand recognition and consider whether additional filings or enforcement measures are required.

If your business holds valuable brands in the Chinese market, preparation now could place you in a significantly stronger position when the new regime arrives. Please reach out to our IP team if you have any queries into how you can protect your brand in China.