Chapter IV  Renewal, Alteration, Assignment and Licensing of Registered Trademarks

Article 39 The period of validity of a registered trademark shall be 10 years, counted from the day the registration is approved.

Article 40 Where a trademark registrant intends to continue using the registered trademark upon expiry of the validity period of registration, the trademark registrant shall go through the renewal procedure within 12 months prior to the expiry date in accordance with relevant provisions; where the registrant fails to do so during the said time limit, an extension of 6 months may be granted. Each renewal of registration shall be valid for 10 years calculating from the date immediately following the expiry date of the last validity period of the trademark. If no application for renewal is filed upon expiry of the extension period, the registered trademark shall be cancelled.

The trademark office shall announce the renewed trademarks.

Article 41 If a change needs to be made to the name or address of the registrant of a trademark or in any other registered matter, an application for alteration shall be filed.

Article 42 To assign a registered trademark, the assignor and assignee shall sign an assignment agreement and jointly file an application with the trademark office. The assignee shall guarantee the quality of the goods on which the registered trademark is used.

When assigning a registered trademark, the trademark registrant shall assign, along with it, similar trademarks registered for the same kind of goods, and identical and similar trademarks registered for similar goods.

The trademark office shall not approve the assignment of a registered trademark that is likely to cause confusion or result in other adverse effects, and shall notify the applicant concerned in writing and explain the reasons therefor.

After the assignment of a registered trademark is approved, it shall be announced. The assignee shall enjoy the exclusive right to the use of the trademark starting from the date the announcement is made.  

Article 43 The registrant of a trademark may, by concluding a trademark licensing contract, authorize another person to use the registered trademark. The licensor shall supervise the quality of the goods on which the licensee uses the registered trademark, and the licensee shall guarantee the quality of the goods on which the registered trademark is used.

In using the registered trademark under authorization of another person, the name of the licensee and the production area of the goods shall be indicated on the goods that bear the registered trademark.

A licensor who licenses others to use a registered trademark shall submit the trademark licensing to the trademark office for the record, and the trademark office shall announce the trademark licensing. Without the record, the trademark licensing shall not be used against a bona fide third party.

Chapter V  Declaration of the Invalidity of Registered Trademarks

Article 44 A registered trademark shall be declared invalid by the trademark office if it is in violation of Article 4, Article 10, Article 11, Article 12 or the fourth paragraph of Article 19 of this Law, or it is registered by fraudulent or other illegitimate means. Other entities or individuals may request the trademark review and adjudication board to declare the aforesaid registered trademark invalid. 

Where the trademark office makes a decision on declaring a registered trademark invalid, it shall notify the party concerned in writing of the decision. A party concerned dissatisfied with the decision made by the trademark office may apply for a review with the trademark review and adjudication board within 15 days upon receiving the notice from the trademark office. The trademark review and adjudication board shall make a decision and notify the party concerned in writing within 9 months upon receiving the application for review. Where it is necessary under special circumstances, an extension of 3 months may be granted upon approval by the administrative department for industry and commerce under the State Council. A party concerned dissatisfied with the decision made by the trademark review and adjudication board may bring a lawsuit to the people's court within 30 days upon receiving the notice from the trademark review and adjudication board.

Where other entities or individuals request the trademark review and adjudication board to declare a registered trademark invalid, the latter shall, upon receiving the application, notify the party concerned in writing, and require the party concerned to respond within a time limit. The trademark review and adjudication board shall, within 9 months upon receiving the application, render a ruling on either maintaining the validity of the registered trademark or declaring the registered trademark invalid, and notify the party concerned in writing. Where it is necessary under special circumstances, an extension of 3 months may be granted upon approval by the administrative department for industry and commerce under the State Council. A party concerned dissatisfied with the ruling made by the trademark review and adjudication board may bring a lawsuit to the people's court within 30 days upon receiving the notice, in which case the people's court shall notify the opposing party in the trademark ruling procedure to participate in the litigation proceedings as a third party.

Article 45 Where a registered trademark is in violation of the second and third paragraphs of Article 13, Article 15, the first paragraph of Article 16, Article 30, Article 31 or Article 32 of this Law, the holder of prior rights or an interested party may, within 5 years upon the registration of the trademark, request the trademark review and adjudication board to declare the registered trademark invalid. In the case of bad faith registration, the owner of a well-known trademark is not bound by the five-year restriction.

The trademark review and adjudication board shall, after receiving an application for declaring the registered trademark invalid, notify the party concerned as such in writing, and require the party concerned to respond within a time limit. The trademark review and adjudication board shall, within 12 months upon receiving the application, render a ruling on either maintaining the validity of the registered trademark or declaring the registered trademark invalid, and notify the party concerned as such in writing. Where it is necessary under special circumstances, an extension of 6 months may be granted upon approval by the administrative department for industry and commerce under the State Council. A party concerned dissatisfied of the ruling made by the trademark review and adjudication board may bring a lawsuit to the people's court within 30 days upon receiving the notice, in which case the people's court shall notify the counterparty to the trademark ruling procedure to participate in the litigation proceedings as a third party.

In reviewing an application for declaring a registered trademark invalid pursuant to the preceding paragraph, the trademark review and adjudication board may suspend the review if the prior rights involved can only be ascertained based on the outcomes of another case currently tried by a people's court or tried by an administrative organ. The trademark review and adjudication board shall resume the review procedure once the circumstances for suspension are eliminated.

Article 46 Upon the expiry of the statutory time limit, if the party concerned fails to apply for a second review upon the trademark office's decision on declaring a registered trademark invalid, or fails to bring a lawsuit to the people's court against the trademark review and adjudication board's decision of the second review or its ruling on maintaining the validity of a registered trademark or declaring a registered trademark invalid, the trademark office's decision or the trademark review and adjudication board’s decision or ruling shall become effective.

Article 47 A registered trademark that is declared invalid in accordance with Article 44 or Article 45 of this Law shall be announced by the trademark office, and the exclusive right to the use of the registered trademark thereof shall be deemed as non-existent ab initio.

The decision or ruling on declaring a registered trademark invalid shall have no retroactive effect on a judgment, ruling or court mediation agreement on a trademark infringement case already rendered and enforced by a people's court, a decision on handling a trademark infringement case already made and enforced by an administrative department for industry and commerce as well as a trademark assignment or licensing contract already performed prior to such declaration. However, the trademark registrant shall be liable for compensation where losses are caused maliciously to another party.

Trademark infringement damages, trademark assignment fees or trademark royalties shall be refunded fully or partially if the non-refund thereof pursuant to the preceding paragraph is in obvious violation of the principle of fairness.

Chapter VI  Administration of Trademark Use

Article 48 For the purpose of this Law, the use of trademarks shall refer to the use of trademarks on goods, the packaging or containers of goods and the transaction documents of goods, as well as the use of trademarks for advertisement, exhibition and other commercial activities for the purpose of identifying the sources of goods.

Article 49 A trademark registrant that, without authorization, makes alternations with respect to the registered trademark, the name or address of the registrant or other registered matters during the use of the registered trademark shall be ordered to make corrections within a time limit by the relevant local administrative department for industry and commerce; in the case of failure to make corrections within the prescribed time limit, the trademark office shall revoke the registered trademark thereof.

Where a registered trademark has become the generic name of the goods for which its use is approved or a registered trademark has not been put in use for 3 consecutive years without a justifiable reason, any entity or individual may apply to the trademark office for revocation of the registered trademark, and the trademark office shall make a decision within 9 months upon receiving the application. Where it is necessary under special circumstances, an extension of 3 months may be granted for making a decision upon approval by the administrative department for industry and commerce under the State Council.

Article 50 Within 1 year from the time when a registered trademark is revoked or declared invalid, or is not renewed upon the expiry of its validity period, the trademark office shall not approve any application for registration of a trademark identical with or similar to the aforesaid trademark.  

Article 51 In the case of a violation of the provisions of Article 6 of this Law, the local administrative department for industry and commerce shall order the violator to file an application for registration within a time limit and if the illegal business revenue is not less than RMB 50,000 yuan, a fine of not more than 20% of the illegal business revenue may be imposed; if there is no illegal business revenue or the illegal revenue is less than RMB 50,000 yuan, a fine of not more than RMB 10,000 yuan may be imposed.

Article 52 Where a party passes off an unregistered trademark as a registered trademark or uses an unregistered trademark in violation of Article 10 of this Law, the relevant local administrative department for industry and commerce shall stop such acts, order the party to make corrections within a time limit, and may circulate a notice on the matter. If the illegal business revenue is not less than RMB 50,000 yuan, a fine of not more than 20% of the illegal business revenue may be imposed; if there is no illegal business revenue or the illegal business revenue is less than RMB 50,000 yuan, a fine of not more than RMB 10,000 yuan may be imposed.

Article 53 Whoever violates the fifth paragraph of Article 14 of this Law shall be ordered to make corrections by the relevant local administrative department for industry and commerce, and be fined RMB 100,000 yuan.

Article 54 A party concerned disagreeing with the decision made by the trademark office on revoking or not revoking a registered trademark may apply for a second review to the trademark review and adjudication board within 15 days upon receiving the notification of the decision. The trademark review and adjudication board shall, within 9 months upon receiving the application, make a decision and notify the party concerned in writing. Where it is necessary under special circumstances, an extension of 3 months may be granted upon approval by the administrative department for industry and commerce under the State Council. The party concerned disagreeing with the decision made by the trademark review and adjudication board may bring a lawsuit to the people's court within 30 days from the date of receiving the notification.

Article 55 Upon expiry of the statutory time limit, if the party concerned fails to apply for a second review of the trademark office’s decision on revoking a registered trademark, or fails to bring a lawsuit to the people's court against a decision of the second review made by the trademark review and adjudication board, the decision of revocation or the decision of the second review shall become effective.

The trademark office shall make an announcement on the revocation of the registered trademark. The exclusive right to the use of the aforesaid registered trademark shall terminate as of the date of announcement. 

Chapter VII  Protection of the Exclusive Right to the Use of a Registered Trademark

Article 56 The exclusive right to the use of a registered trademark shall be limited to the approved trademarks and to the approved scope of goods. 

Article 57 Any of the following acts shall constitute an infringement on the exclusive rights to the use of a registered trademark:

(1) using a trademark that is identical with a registered trademark on the same kind of goods without obtaining licensing from the registrant of the registered trademark;

(2) using a trademark that is similar to a registered trademark on the same kind of goods, or using a trademark that is identical with or similar to the registered trademark on similar goods without licensing from the registrant of the registered trademark, and is likely to cause confusion;

(3) selling goods that infringe on the exclusive right to the use of a registered trademark;

(4) counterfeiting, or making without authorization, representations of another person's registered trademark, or selling such representations;

(5) altering a registered trademark without permission of its registrant and selling goods bearing such an altered trademark on the market;

(6) providing, intentionally, convenience for such acts as infringing upon others' exclusive right to the use of a trademark, and facilitating the commitment of infringement on the exclusive right by others; and

(7) impairing in other manners another person's exclusive right to the use of its registered trademark.

Article 58 Whoever uses a registered trademark or an unregistered well-known trademark of another party as the trade name in its enterprise name and misleads the public, which constitutes unfair competition, shall be dealt with in accordance with the Anti-Unfair Competition Law of the People's Republic of China.

Article 59 The holder of the exclusive right to the use of a registered trademark shall have no right to prohibit others from properly using the generic name, graphics or models of a commodity contained in the registered trademark, or such information as directly indicates the quality, main raw materials, functions, purposes, weight, quantity or other features of the commodity, or the names of the geographical locations as contained therein.

The holder of the exclusive right to the use of a registered trademark that is a three-dimensional symbol shall have no right to prohibit others from properly using shapes contained in the registered trademark resulting from the inherent nature of the goods concerned, shapes necessary to achieve a specific technical function, or shapes that give substantive value to the goods.

Where, before a trademark registrant applies for registration of a trademark, another party has used a trademark that is of certain influence and is identical with or similar to the registered trademark on the same kind of goods or similar goods, the holder of the exclusive right to the use of the registered trademark shall have no right to prohibit the said party from continued use of the trademark within the original scope of use; however, the holder may require the latter to add a proper mark for distinguishment.

Article 60 A dispute that arises from an act infringing upon the exclusive right to the use of a registered trademark prescribed in Article 57 of this Law shall be settled by the parties concerned through consultation. Where the parties concerned are unwilling to engage in consultation or a consultation has failed, the trademark registrant or an interested party may bring a lawsuit to the people's court, or request the relevant administrative department for industry and commerce to address the dispute.

When addressing the dispute, if the administrative department for industry and commerce is of the opinion that the infringement is established, it shall order the relevant party to immediately cease the infringing act, and shall confiscate and destroy the infringing goods and instruments mainly used for manufacturing the infringing goods or forging the registered trademark. Where the illegal business revenue is not less than RMB 50,000 yuan, a fine of not more than five times the illegal business revenue may be imposed thereon; where there is no illegal business revenue or the illegal business revenue is less than RMB 50,000 yuan, a fine of not more than RMB 250,000 yuan may be imposed thereon. If a party has committed trademark infringement more than once within five years or if the infringement falls under any other serious circumstances, the party shall be subjected to a heavier punishment. If a party is unaware of the infringing nature of such products and is able to prove that the products are obtained by legitimate means and can provide information on the suppliers of the products, the party shall be ordered to stop selling the products by the administrative department for industry and commerce.

As to a dispute over the amount of damages for infringement on the exclusive right to the use of a trademark, the parties concerned may apply to the administrative department for industry and commerce that addresses the infringing dispute for mediation, or may bring a lawsuit to the people's court in accordance with the Civil Procedure Law of the People's Republic of China. In the case of failure to reach any agreement upon mediation by the administrative department for industry and commerce, or to perform the court mediation agreement after it becomes effective, the parties may bring a lawsuit to the people's court in accordance with the Civil Procedure Law of the People's Republic of China.

Article 61 The administrative department for industry and commerce shall have the power to investigate any act infringing upon the exclusive right to the use of a registered trademark. Where a crime is suspected to have been committed, the case shall be transferred to the judicial organ for handling in accordance with law.

Article 62  When an administrative department for industry and commerce at or above the county level, on the basis of the evidence obtained for a suspected violation of law, or on the basis of complaint, conducts investigation into a suspected infringement of another person's exclusive right to the use of a registered trademark, it may exercise the following functions and powers:

(1) questioning the parties concerned to find out the facts regarding the infringement of another person's exclusive right to the use of a registered trademark;

(2) checking and reproducing the parties' contracts, invoices, account books, and other materials relating to the infringement;

(3) conducting on-site inspection of the premises where the suspected party carries out activities infringing upon another person's exclusive right to the use of a registered trademark; and

(4) inspecting articles involved in the infringement; sealing or seizing the articles that are proven to been used for infringing upon another person's exclusive right to the use of a registered trademark.

When the administrative department for industry and commerce exercises the functions and powers provided for in the preceding paragraph in accordance with law, the parties shall assist and cooperate with it and shall not refuse or stand in its way.

During the investigation and handling of a trademark infringement case, an administrative department for industry and commerce may suspend the investigation and handling of the case if disputes arise over the ownership of the trademark or if the right holders simultaneously bring a trademark infringement lawsuit to a people's court. The investigation and handling procedures shall be resumed or terminated after the circumstances for suspension are eliminated.

Article 63 The amount of damages for infringement on the exclusive right to the use of a trademark shall be determined based on the actual loss suffered by the right holder as a result of the infringement; if it is difficult to determine the actual loss, the amount of damages may be determined according to the profits gained therefrom by the infringer; if it is difficult to determine the loss of the right holder and the profits gained by the infringing party, the amount of damages may be reasonably determined in reference to the multiples of the trademark licensing royalties. Where an infringer maliciously infringes upon another party's exclusive right to the use of a trademark and the infringement falls under serious circumstances, the amount of damages may be determined as not less than one time the amount that is determined according to the aforesaid methods but not more than five times of the amount. The damages awarded shall include the reasonable expenses incurred by the right holder to stop the infringing act.

Where the right holder has exhausted its efforts in discharging the burden of proof, while the account books and materials related to the infringing act are mainly controlled by the infringer, the people's court may, for the purpose of determining the amount of damages, order the infringer to submit account books and materials related to the infringing act. Where the infringer fails to provide such account books or materials or provides false account books or materials, the people's court may render a judgment on the amount of damages in reference to the claims of the right holder and the evidence furnished thereby.

Where it is difficult to determine the actual loss suffered by the right holder as a result of the infringement, the profits gained by the infringer from the infringement or the trademark licensing royalties, the people's court shall render a judgment on a compensation not more than RMB 5 million yuan based on the circumstances of the infringing act.

When trying trademark disputes, the people’s court shall, at the request of the right holder, order the destruction of the goods bearing counterfeit registered trademarks, except in special circumstances; shall order the destruction without any compensation of materials and tools that are primarily used to manufacture such goods; or shall, under special circumstances, order to ban without any compensation the aforementioned materials and tools from entering into commercial channels.

Goods bearing counterfeit registered trademarks shall not be allowed to enter into commercial channels after merely removing the counterfeit registered trademarks.

Article 64 Where the holder of the exclusive right to the use of a registered trademark claims for damages, and the alleged infringer makes a defense that the right holder has never used the registered trademark, the people's court may require the right holder to provide evidence of its actual use of the registered trademark during the past three years prior to the lawsuit. The alleged infringer shall not be liable for compensation if the right holder is neither able to prove its actual use of the registered trademark during the past three years prior to the lawsuit, nor able to prove other losses suffered as a result of the infringement.

Where a party is unaware that the goods he sells infringe upon another party's exclusive right to the use of a registered trademark, and the party is able to prove that the goods are obtained by legitimate means and provide information on the suppliers of the goods, it shall not be liable for compensation.

Article 65 Where a trademark registrant or an interested party has evidence proving that another party is committing or will soon commit an act that infringes upon the former's exclusive right to the use of the registered trademark and that such an act, unless promptly stopped, will cause irreparable damage to its legitimate rights and interests, the trademark registrant or interested party may, in accordance with law, apply to the people's court for ordering the stop of the act and taking asset preservation measures before filing a lawsuit.

Article 66 In order to stop an infringing act, and where evidence may be lost or may become unobtainable in the future, the relevant trademark registrant or interested party may, in accordance with law, apply to the people's court for evidence preservation before filing a lawsuit.

Article 67 In the case of using, without licensing from the registrant of trademark, an identical trademark on the same kind of goods, which constitutes a crime, criminal liability shall be born in accordance with law in addition to imposition of compensation for losses suffered by the infringed.

In the case of counterfeiting or making without authorization the representations of another person's registered trademark or sells such representations, which constitutes a crime, criminal liability shall be born in accordance with law in addition to imposition of compensation for losses suffered by the infringed.

In the case of knowingly selling goods bearing counterfeit registered trademarks, which constitutes a crime, criminal liability shall be born in accordance with law in addition to imposition of compensation for losses suffered by the infringed.

Article 68 A trademark agency that commits any of the following acts shall be ordered to make corrections within a time limit by the administrative department for industry and commerce, be given a warning, and be fined not less than RMB 10,000 yuan but not more than RMB 100,000 yuan; the directly responsible persons in charge and other directly responsible persons shall be given a warning and be fined not less than RMB 5,000 yuan but not more than RMB 50,000 yuan; where a crime is constituted, criminal liabilities shall be born in accordance with law:

(1) fabricating or tampering with legal documents, seals or signatures, or using fabricated or tempered legal documents, seals or signatures during the handling of trademark-related matters;

(2) soliciting trademark agency business by defaming other trademark agencies, or disrupting the order of the trademark agency market by other unjust means; or

(3) violating the provisions of Article 4, and the third and fourth paragraphs of Article 19 of this Law.

Where a trademark agency commits an act prescribed in the preceding paragraph, the administrative department for industry and commerce shall record such matters in the credit files; if the circumstances are serious, the trademark office or the trademark review and adjudication board may concurrently decide to cease the acceptance and handling of trademark agency business submitted by the trademark agency, and shall make an announcement thereon.

The trademark agency shall bear civil liabilities in accordance with law if it violates the principle of good faith and infringes upon the legitimate rights and interests of a principal, and shall be given sanctions by the industry association of the trademark agencies pursuant to its articles of association.

In the case of bad faith application of the trademark registration, administrative punishment such as warning and fine shall be imposed based on the circumstances; where a trademark lawsuit is maliciously brought, the people’s court shall impose punishment in accordance with law.

Article 69 Employees of state organs engaged in trademark registration, administration, and the second review shall be impartial in implementing the law, uphold integrity and remain self-disciplined, be devoted to their duties, and provide services with civility.

No employee of state organs working in the trademark office and the trademark review and adjudication board or engaged in trademark registration, administration, and the second review may work for trademark agencies or engage in the production or business operation of goods.

Article 70 Administrative departments for industry and commerce shall establish and improve an internal supervision system to supervise and inspect the way state organ employees in charge of trademark registration, administration, and the second review implement laws and administrative regulations and observe discipline.

Article 71 Where a state organ employee engaged in trademark registration, administration, and the second review neglects his duty, abuses his power, and engages in malpractice for personal gain, violates the law in trademark registration, administration, and the second review, accepts money or things of value from a party, or seeks illegitimate interests, which constitutes a crime, he shall be held criminally liable in accordance with law. Where the case does not constitute a crime, he shall be given sanctions in accordance with law.

Chapter VIII  Supplementary Provisions

Article 72 Applicants for trademark registration and for the handling of other trademark matters shall pay a fee, the specific rates of which shall be determined separately.

Article 73 This Law shall go into effect on March 1, 1983. The Regulations on Trademark Administration promulgated by the State Council on April 10, 1963 shall be revoked simultaneously, and other regulations concerning trademark administration that conflict with the provisions of this Law shall be nullified at the same time.

Trademarks registered before this Law goes into effect shall remain valid.