Page 86 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China

2. Continuous Crackdown on Bad Faith i. situations where the trademark agency
Applications knows or should know that the client is engaged
in the above-mentioned acts, but still accepts the
On 12th April 2022, the State Intellectual assignment or otherwise acts improperly as a
Property Office (SIPO) issued the Notice on trademark agent; and
Continuing to Severely Crack Down on the Bad
faith Registration of Trademarks, which targets j. other acts that have a significant negative
the following typical illegal acts that violate the impact on China’s trademark registration
principle of honesty and credit, violate public management, social public interest, or public order.
order and morals, seek improper interests, and
disrupt the order of trademark registration: In addition, the SIPO also issued the Notice on
Continuing and Strictly Regulating Patent Application
a. bad faith squatting of marks that are the Behavior, requiring all units to crack down on
same as or similar to the names of important CCP acts related to abnormal patent applications that
meetings, important theories, scientific assertions, are not aimed at protecting innovation, and to
political discourses, etc.; regularly notify all localities of abnormal patent
applications, withdrawals, complaint handling,
b. bad faith squatting of marks that are the the proportion of high-quality patent applications
same as or similar to national strategies, national and abnormal patent applications, the proportion
policies, major works, major scientific and of granted patents in closed cases of inventions,
technological projects, important events with the proportion of granted patents that lapse
high popularity, important exhibitions, and major after paying the first year's annual fee, etc. The
archaeological discoveries; guidance sought to establish an efficient and
accurate investigation mechanism detecting
c. bad faith squatting of terminology related abnormal patent applications, as well as a precise
to major sensitive events or emergencies such as management system of patent applications. Local
major public health events; intellectual property management departments
are required to intensify the active screening of
d. bad faith squatting of political, economic, abnormal patent applications. Moreover, the
cultural, ethnic, religious, and other public figures intellectual property management departments at
with high reputation; all levels are required to focus on the key clues of
suspected illegal and irregular patent applications,
e. the filing of trademark applications that including unusually large number of applications,
obviously exceed the needs of normal business fraudulent use of others’ information to apply
activities, or where there is no real intention to use; for patents, repeatedly applying for abnormal
patents, buying and selling abnormal patent
f. copying, imitating, or plagiarizing a large applications, and patent applications by “three
number of trademarks or other commercial noes” shell companies with no R&D investment,
marks that are owned by a variety of brand no R&D personnel, and no production/operation,
owners and have a certain reputation or etc. IP management authorities should continue
strong distinctiveness; to overcome difficulties, intensify their efforts, dig
deeper into the root of the problem, strengthen
g. filing a large number of applications for the comprehensive rectification, and crack down on
registration of marks that are the same as or the agencies for irregular patent applications and
similar to public cultural resources, administrative unqualified patent agents.
division names, common names of goods or
services, industrial terms, etc.; 3. Increased Opening-Up of IP Services

h. transferring a large number of trademarks On 20th May 2022, the Shanghai Intellectual
to multiple assignees and disrupting orderly Property Office issued a notice regarding the
trademark registration; pilot work of resident representative offices

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