China operates a “first-to-file” trademark system, not a “first-to-use” system like the United States. This distinction has critical implications for international brands entering the Chinese market.
The first person or entity to file a trademark application in China gains priority rights to that mark. Prior use of the mark outside China, or even within China, does not automatically confer trademark rights.
China has a well-documented problem with trademark squatting. Bad-faith actors monitor international brands and file their trademarks in China before the brand owner does. Once registered, the squatter can block the brand from entering the market or demand a high price to transfer the mark.
Our pre-filing search includes checks for common squatter patterns and Chinese transliterations that bad-faith filers often use.