China’s trademark activity continues to soar

• Author: Catherine Jewell
• Position: Communications Division, WIPO

What is the status of trademark activity in China?

Trademark applications filed in China over the last decade have soared from 766,319 in 2006 to 2,876,048 in 2015. This trend is continuing despite sluggish global economic growth.

Five factors account for this rapid growth. First, the Chinese Government’s drive to boost “mass entrepreneurship and innovation”. This has helped maintain strong economic growth, promoted market development and lowered market entry barriers. It has also resulted in the formation of many new companies which are boosting entrepreneurship, innovation and trademark activity.

Second, the implementation of the 2014 Trademark Law has helped create a sound legal environment for trademarks to thrive. Intellectual property (IP) laws and regulations are constantly improving.

Third, the industry and commerce authorities and market regulators at all levels are working to create a level playing field for the protection and use of trademark rights.

Fourth, SAIC is actively improving its trademark registration procedures to ensure applicants have access to efficient, high-quality services. At present about 70 percent of all trademark applications are filed online and that number is growing every month.

Fifth, extensive IP outreach efforts have boosted public and business awareness of the value of trademarks.

Are foreign applicants protecting their trademarks in China?

In 2015, there were 176,893 trademark applications filed by foreign applicants, including those filed under the Madrid System for the International Registration of Marks, that is, 6.15 percent of all applications received by the Chinese Trademark Office (CTMO). By April 2016, valid foreign trademark registrations accounted for 10.68 percent of all valid CMTO trademark registrations.

Are Chinese applicants using WIPO’s Madrid System?

China joined the Madrid System in October 1989 and became its seventh-largest user in 2015, when Chinese applicants filed 2,321 international applications. This is less than 0.1 percent of all applications filed with the CTMO, so there is huge potential to expand use of the System by Chinese enterprises.

The Madrid System is a convenient way for Chinese enterprises to register and protect their trademarks abroad, and for foreign companies to do so in China. It can support the long-term business goals of Chinese companies and help strengthen international recognition of Chinese brands, which is our long-term goal.

For over 25 years, the Madrid System has underpinned China’s impressive record in foreign trade and is an integral part of China’s “Go Global” Strategy.

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