China has adopted a sweeping revision of its Trademark Law, introducing what many practitioners regard as the most significant reform of the country’s trademark system since 2013. Approved by the Standing Committee of the National People’s Congress on June 26, 2026, the revised law will come into force on January 1, 2027, bringing substantial changes to trademark filing, enforcement and portfolio management.
The amendments arrive at a pivotal moment in China’s economic development. With nearly 50 million registered trademarks on the mainland by the end of 2025, policymakers have increasingly focused on improving the quality of registrations rather than simply expanding the volume of filings. The new legislation reflects that shift, seeking to strengthen protection for legitimate rights holders while making the system less hospitable for trademark squatters and speculative filers.
At the heart of the reforms is a renewed emphasis on genuine commercial use. Historically, companies and individuals have often accumulated large trademark portfolios without any immediate intention of bringing products or services to market. While defensive filing remains a common global practice, Chinese lawmakers have signalled a desire to reduce registrations that serve little genuine business purpose. Under the revised framework, authorities will scrutinize more closely whether applications reflect genuine business needs and a bona fide intention to use the mark.
Perhaps the most headline-grabbing measure is the introduction of direct financial penalties for certain bad-faith filing activities. Previous reforms largely focused on refusing problematic applications or invalidating registrations after the fact. The new law goes further by empowering regulators to impose fines of up to Rmb100,000 (US$14,700) on applicants who engage in specified bad-faith or abusive trademark filing conduct. Trademark agencies may also face liability if they knowingly assist in bad-faith trademark filings.
For foreign brand owners, the changes are likely to be welcomed. Trademark squatting has long been among the most commonly cited IP concerns for international companies entering the Chinese market. In many instances, opportunistic parties registered foreign brands before the legitimate owners secured protection, forcing businesses into costly legal battles or negotiations. By targeting bad-faith filings more aggressively, the reforms seek to strengthen confidence in China’s trademark system and reinforce its reputation as an innovation-driven economy.
The legislation also modernizes several aspects of trademark practice. Motion marks will become eligible for registration, allowing businesses to protect animated branding elements in a manner increasingly aligned with international standards. The law additionally recognizes trademark use through online channels, including social media platforms, ecommerce sites and digital environments that have become central to modern brand building.
Procedural changes will require rights holders to be more vigilant. The opposition period for challenging published trademark applications will be shortened from three months to two months. While intended to streamline the registration process, the shorter timeline means brand owners will need more robust watching services and quicker decision-making when potentially conflicting applications emerge.
For multinational businesses, the practical consequences extend beyond China. Legal teams will now need to reassess filing approaches, evidence-gathering procedures and portfolio structures to ensure compliance with the revised standards. Defensive registrations may face increased scrutiny where they clearly exceed normal business needs, while commercial intent could become a more important component of application planning.
Ultimately, the reform represents a maturation of China’s trademark system. Rather than encouraging trademark accumulation for its own sake, policymakers are signalling that registered rights should be tied to genuine economic activity. Whether the reforms succeed in significantly reducing trademark squatting remains to be seen, but they clearly mark a new chapter in the evolution of one of the world's most important trademark jurisdictions.
- Asia IP
