Search

Region
Jurisdiction
Firm
Author
Date
to
Keywords
Search

Strengthening Trademark Use Governance – Policy Insights from China from a Corporate Legal IP Perspective - - AIPPI China

Nestle (China) Ltd. China


As intellectual property protection continues to deepen globally, trademark governance is increasingly shifting from a sole focus on registration and enforcement toward greater attention to how trademarks are actually used in the marketplace. In this context, the Notice on Strengthening Trademark Use Management issued by the Office of the China National Intellectual Property Administration (CNIPA Notice No. 916 [2025]) (the Notice) offers important insights into China’s evolving regulatory approach and its implications for corporate brand governance.

From a corporate legal perspective, the Notice reflects a broader policy trend: trademark compliance is no longer limited to securing rights, but has become an integral part of consumer protection, market order, and sustainable brand development.

Trademark Use Compliance as a Matter of Public Interest

A key policy message of the Notice is that trademark use must serve not only brand interests, but also broader public and market interests. By explicitly targeting misleading and deceptive trademark use, the Chinese authorities underscore the role of trademarks as information carriers that shape consumer perception and market trust.

For enterprises, this represents a clear signal that trademark use strategies should be assessed not only from a marketing perspective, but also through the lens of social responsibility and regulatory risk. Inaccurate or exaggerated trademark-related claims—whether intentional or not—may undermine consumer confidence and disrupt fair competition.

Key Risk Areas in Trademark Use

The Notice identifies seven categories of trademark use that warrant heightened scrutiny:

  1. the deceptive use of unregistered trademarks containing quality-related, origin-related, or absolute claims, such as using “organic”, 100% in brand name when the product does not meet those standards;
  2. misleading use of registered trademarks, such as combining a registered mark with packaging or slogans suggesting a specific origin which is misleading;
  3. passing off unregistered trademarks as registered;
  4. failure to use registered trademarks where legally required, such as electronic cigarettes sold without the required registered trademark;
  5. improper commercial use of the term “well-known trademark” such as highlighting this in advertising materials;
  6. non-compliant use of collective or certification marks, such as applying a certification mark to products that do not meet the relevant standard;
  7. illegal conduct by trademark agencies.

From an international corporate compliance standpoint, these risk areas are not unique to China. Similar concerns arise across jurisdictions where consumer protection and unfair competition laws intersect with trademark law. What is noteworthy, however, is China’s increasingly explicit articulation of these risks at the policy level, providing clearer expectations for corporate behavior.

Implications for Corporate Trademark Governance

Beyond identifying prohibited practices, the Notice emphasizes preventive and systemic governance measures, such as early-stage risk screening, inter-agency coordination, and compliance guidance for market participants. This reflects a regulatory shift toward ex ante control rather than purely ex post enforcement.

For corporate legal and IP teams, the policy direction suggests several practical takeaways:

  1. Trademark use compliance should be embedded into internal brand governance frameworks, rather than treated as an isolated legal issue.
  2. Early legal review at the stages of product naming, packaging design, and marketing communication can significantly reduce downstream regulatory and reputational risks.
  3. Internal training and cross-functional collaboration are essential to align business teams with evolving regulatory expectations.

Trademark Compliance as a Foundation for Sustainable Brand Value

Importantly, the Notice positions compliant trademark use not merely as a defensive obligation, but as a foundation for long-term brand value. Consistent, truthful, and regulated trademark use enhances the stability of trademark rights, reduces disputes, and strengthens consumer trust—key assets for enterprises operating in increasingly transparent and competitive markets.

From this perspective, China’s approach aligns with broader international trends emphasizing responsible branding, fair competition, and high-quality growth. Trademark governance, when effectively integrated into corporate compliance systems, can serve as both a risk management tool and a strategic enabler of sustainable development.

Conclusion

CNIPA Notice No. 916 (2025) illustrates China’s ongoing efforts to refine trademark governance by placing greater emphasis on use-based compliance. For multinational enterprises and brand owners, the policy offers valuable insight into regulatory expectations in one of the world’s largest markets, while also contributing to a broader global conversation on the role of trademarks in consumer trust and market integrity.

By proactively aligning trademark use practices with these principles, enterprises can better navigate regulatory risk, strengthen brand credibility, and support long-term, responsible growth.

 

 

AIPPI China

Tel: +86 10 66046121

Email: aippichina@ccpit-patent.com.cn

Link: www.aippi.org.cn

 

Nestle (China) Ltd.



About the Firm



Related Articles