BEIJING, June 23 (Xinhua) -- A draft amendment to China's Trademark Law was submitted on Tuesday to the ongoing session of the Standing Committee of the National People's Congress, the country's top legislature, for its second deliberation, with enhanced measures to crack down on misleading trademark practices and better protect consumer rights.
The revision targets so-called "tricky trademarks" that are designed to resemble product ingredients or production processes, misleading consumers and disrupting the trademark administration order.
Under the proposed amendment, using a registered trademark in a way that misleads the public could result in fines of up to five times the illegal business turnover if the amount exceeds 50,000 yuan (about 7,342 U.S. dollars), or up to 250,000 yuan if the turnover is below that threshold.
"This strengthens the consumer protection orientation," said Ma Yide, dean of the School of Intellectual Property at the University of the Chinese Academy of Sciences, calling for supporting mechanisms to enhance consumer education and awareness.
The draft also takes aim at malpractice by trademark agencies, including malicious registrations and hoarding of trademarks for resale.
It requires trademark agencies and their practitioners to register their information with the trademark administration department under the State Council, a move that experts say signals stronger oversight.
"The difficulty in regulating the trademark agency market lies in the uneven quality of practitioners and inadequate industry self-regulation," said Guan Yuying, a researcher at the Institute of Law of the Chinese Academy of Social Sciences. "This revision sends a clear signal of stronger regulation," Guan noted.
In response to the rise of the digital economy, the draft explicitly states that trademark use includes use via the internet and other information networks.
Experts note that online platforms, social media and even virtual spaces like the metaverse have become key arenas for product promotion and consumer decision-making, and the revision is a timely response to these commercial developments.
To tighten the gateway for trademark registration, the draft provides more detailed provisions on signs that cannot be registered or used as trademarks.
It clarifies that national park emblems, Olympic symbols and other special signs shall be governed by the Trademark Law and relevant laws and regulations.
The draft also strengthens protection for Chinese companies' overseas rights. It stipulates that those who use fraudulent or other improper means to handle overseas trademark registrations for domestic clients, harming the clients' interests or national and public interests, shall be dealt with according to the law.
Further regulating overseas squatting will help safeguard the legitimate overseas interests of Chinese enterprises and foster a business environment with coordinated domestic and international development, Guan said.
There were more than 4.2 million trademarks registered on the Chinese mainland last year, while the total number of effectively registered trademarks had exceeded 49.87 million by 2025. ■
