International Law

China Trademarks. Rumors Of Speed Are Greatly Exaggerated.

By Dan

Recently gave some China trademark advice of somewhat universal applicablity.

The first was for a client getting ready to register a couple of its trademarks in China. They asked how long "it would all take" and I gave my standard answer. We typically take a week or two to get everything set up and filed, but China's Trademark Office itself typically takes two to three years (yes, years) to go from the filing to actual registration of the trademark. Rejections tend to happen within a year or so, but approvals take way longer. China keeps talking about speeding up the process, but we ain't seeing it.

I then talked of how until the trademark is approved, the client will not be able to stop others in China from using "their" trademarks, but by filing now, it will at least ensure it will be first in line for the trademarks when issued.  

I also recently gave some China trademark advice to a client whose China trademarks are held in the name of the United States parent company, yet its China WFOE subsidiary is the one in China using the trademarks. The WFOE is going to be selling the trademarked products in Chinese retail stores and so they asked us whether the fact that their United States parent holds the China trademark might pose them some problems.

Our answer was that it might because some stores (particularly the larger ones) in China require the companies from whom they purchase products to prove that their products are legitimate and legitimately theirs. One way they do this is to require proof of the trademark and if the trademark is held by a United States company and the Chinese retail store is doing business with a different company (i.e. the China WFOE), the Chinese retailer might get concerned.  

The best solution to this problem is for the United States parent company to license use of its trademark to its China WFOE and then register that licensing agreement with China's Trademark Office. 

Full post as published by China Law Blog on October 16, 2010 (boomark / email).