Notice for soliciting comments on the draft revision of the Trademark Law

In order to further enhance the openness and transparency of legislation and improve the quality of legislation, the Legislative Affairs Office of the State Council has decided to publish the full text of the "Trademark Law of the People's Republic of China (Revised Draft for Comments)" to solicit opinions from all walks of life so that it can be further studied, revised and submitted to the State Council executive meeting for review. The relevant matters are now notified as follows:

Relevant units and people from all walks of life can submit opinions through the following three methods before October 8, 2011:

(1) Log in to the Chinese Government Legal Information Network (website: http://www.chinalaw.gov.cn), you can provide comments on the draft regulations through the "Comments Collection System for Draft Regulations and Regulations" on the left side of the homepage of the website.

(2) Send your opinions by letter to the Legislative Affairs Office of the State Council, address: No. 33, Ping'anli West Street, Xicheng District, Beijing (Postal Code: 100035), and please indicate on the envelope "Soliciting Opinions on the Trademark Law of the People's Republic of China".

(3) Send comments via email to: shangbf@chinalaw.gov.cn.

Legislative Affairs Office of the State Council

September 1, 2011

Trademark Law of the People's Republic of China (Revised Draft for Comments)

Chapter 1 General

Article 1 This Law is formulated in order to strengthen trademark management, protect the exclusive rights to trademarks, urge producers and operators to ensure the quality of goods and services, maintain trademark reputation, protect the interests of consumers and producers and operators, and promote the development of the socialist market economy.

Article 2 The Trademark Office of the Industrial and Commercial Administration Department of the State Council is responsible for the registration and management of trademarks nationwide.

The Administration for Industry and Commerce of the State Council has established a Trademark Review and Adjudication Committee to handle trademark disputes.

Article 3 Trademarks approved and registered by the Trademark Office are registered trademarks, including commodity trademarks, service marks, collective trademarks, and certification marks; the trademark registrant enjoys the exclusive right to use the trademark and is protected by law.

The term “collective trademark” as mentioned in this Law refers to a mark registered in the name of a group, association or other organization for use by members of the organization in commercial activities to indicate the user’s membership in the organization.

The term "certification trademark" as used in this Law refers to a mark controlled by an organization with the ability to supervise certain goods or services and used by units or individuals other than the organization for its goods or services to certify the origin, raw materials, manufacturing methods, quality or other specific qualities of the goods or services.

Special matters concerning the registration and management of collective trademarks and certification marks shall be stipulated by the industrial and commercial administration department of the State Council.

Article 4 If a natural person, legal person or other organization needs to obtain the exclusive right to use a trademark for the goods it produces, manufactures, processes, selects or distributes, it shall apply to the Trademark Office for commodity trademark registration.

If a natural person, legal person or other organization needs to obtain the exclusive right to use a trademark for the services it provides, it should apply to the Trademark Office for service trademark registration.

The provisions of this Law regarding commodity trademarks shall apply to service trademarks.

Article 5 Two or more natural persons, legal persons or other organizations may jointly apply to the Trademark Office for registration of the same trademark, and jointly enjoy and exercise the exclusive right to the trademark.

Article 6 For goods that require the use of registered trademarks as stipulated by the state, you must apply for trademark registration. Products without registration approval shall not be sold in the market.

Article 7 Trademark users shall be responsible for the quality of the goods on which their trademarks are used. Industrial and commercial administrative departments at all levels should use trademark management to prevent behaviors that deceive consumers.

Article 8 Any sign that can distinguish the goods of a natural person, legal person or other organization from the goods of others, including words, graphics, letters, numbers, three-dimensional signs, colors and sounds, as well as combinations of the above elements, can be applied for registration as a trademark.

Article 9 The trademark applied for registration shall have distinctive features and be easy to identify, and shall not conflict with the legal rights previously obtained by others.

The trademark registrant has the right to indicate "registered trademark" or registered mark.

Article 10 The following signs shall not be used as trademarks:

(1) Those that are the same as or similar to the country name, national flag, national emblem, military flag, military emblems, medals of the People's Republic of China, as well as the names and signs of central state agencies and the names of specific places where they are located or the names and graphics of landmark buildings;

(2) Identical or similar to the name, flag, national emblem, or military flag of a foreign country, except with the consent of the government of that country;

(3) Identical or similar to the name, flag, or emblem of an intergovernmental international organization, except with the consent of the organization or if it is not likely to mislead the public;

(4) Identical or similar to the official signs and inspection marks indicating control and guarantee, except those authorized; (5) Identical or similar to the names and signs of "Red Cross" and "Red Crescent"; (6) Ethnic or racial discrimination;

(7) It is deceptive and can easily cause the public to misunderstand the quality or origin of the product; (8) It is harmful to socialist morals or has other adverse effects.

Place names of administrative divisions at or above the county level or foreign place names known to the public shall not be used as trademarks. However, exceptions are made where place names have other meanings or are part of collective trademarks or certification marks; registered trademarks using place names will continue to be valid.

Article 11 The following signs shall not be registered as trademarks:

(1) Only the common name, graphics and model of the product;

(2) Only directly express the quality, main raw materials, functions, uses, weight, quantity and other characteristics of the goods;

(3) Other lack of distinctive features.

If the marks listed in items (2) and (3) of the preceding paragraph have acquired distinctive features through use and are easy to identify, they may be registered as trademarks.

Article 12 When applying for a registered trademark with a three-dimensional mark, the shape resulting only from the nature of the goods themselves, the shape of the goods required to obtain technical effects, or the shape that makes the goods have substantial value shall not be registered.

Article 13 If a trademark applied for registration on the same or similar goods is a copy, imitation or translation of someone else’s well-known trademark that has not been registered in China, and is likely to cause confusion, it shall not be registered and its use shall be prohibited.

If a trademark applied for registration for different or dissimilar goods is a copy, imitation, or translation of a well-known trademark that has been registered in China by others, misleading the public, and causing the interests of the registrant of the well-known trademark to be potentially damaged, registration will not be granted and use will be prohibited.

Article 14 Well-known trademarks shall be recognized at the request of the parties to the case during administrative procedures such as trademark registration, review, and management, and trademark civil dispute litigation procedures.

The following factors should be considered when determining a well-known trademark:

(1) The degree of awareness of the trademark by the relevant public;

(2) The duration of use of the trademark;

(3) The duration, extent and geographical scope of any publicity work for the trademark;

(4) Records that the trademark is protected as a well-known trademark;

(5) Other factors that make the trademark famous.

The recognition and protection of famous trademarks shall be handled in accordance with local laws and regulations and local government regulations.

Article 15 Without authorization, an agent or representative registers the trademark of the principal or represented person in his or her own name. If the principal or represented person raises an objection, the registration shall not be granted and use shall be prohibited.

Article 16 If a trademark contains a geographical indication of a product, but the product does not originate from the area indicated by the mark and misleads the public, it shall not be registered and its use shall be prohibited; however, registration that has been obtained in good faith will continue to be valid.

The geographical indications mentioned in the preceding paragraph refer to signs indicating that a certain commodity originates from a certain region, and that the specific quality, reputation or other characteristics of the commodity are mainly determined by the natural factors or human factors of the region.

Geographical indications can be applied for registration as certification trademarks or collective trademarks and obtain exclusive rights to trademarks.

Article 17 If a foreigner or foreign enterprise applies for trademark registration in China, it shall be handled in accordance with the agreement signed by the country where it belongs and the People's Republic of China or the international treaty to which they are both parties, or in accordance with the principle of reciprocity.

Article 18 When foreigners or foreign enterprises apply for trademark registration and handle other trademark matters in China, they shall entrust a state-recognized organization with trademark agency qualifications to act as their agent.

Article 19 International registration of trademarks shall be handled in accordance with relevant international treaties to which the People’s Republic of China is a party. The specific application methods shall be stipulated by the industrial and commercial administration department of the State Council.

Article 20 Trademark agency organizations shall abide by laws and administrative regulations, handle trademark registration applications or other trademark matters as entrusted by the agent, and shall not harm the interests of the agent.

The industrial and commercial administrative departments should strengthen the supervision and management of trademark agency organizations.

Chapter 2 Application for Trademark Registration

Article 21 When applying for trademark registration, the product category and product name for which the trademark is used shall be filled in according to the prescribed product classification table.

Trademark registration applications and other relevant documents can be submitted in written form or electronically. If submitted in paper form, it shall be typed or printed.

Article 22 If a trademark registration applicant applies to register the same trademark on different categories of goods, he shall submit a registration application according to the commodity classification table.

The specific methods for applying to register the same trademark for multiple categories of goods through one application shall be stipulated by the industrial and commercial administration department of the State Council.

Article 23 If a registered trademark needs to be used on goods beyond the approved scope of use, a separate application for registration shall be submitted.

Article 24 If a registered trademark needs to change its sign, a new registration application shall be submitted.

Article 25 The application date for trademark registration shall be the date when the Trademark Office receives the application documents.

Article 26 Before the Trademark Office makes a preliminary approval announcement, the applicant may apply to the Trademark Office to change its name, address, agent, or delete designated goods, or may apply to transfer its trademark registration application; an application to change the name or address of the trademark registrant cannot be withdrawn once submitted.

Article 27 If a trademark registration applicant files another trademark registration application for the same goods in China with the same trademark within six months from the date when the trademark registration application is first filed in a foreign country, the applicant may enjoy priority in accordance with the agreement signed by the foreign country and China or an international treaty that both countries are parties to, or in accordance with the principle of mutual recognition of priority.

Those who claim priority in accordance with the preceding paragraph shall make a written statement when submitting the application for trademark registration, and submit a copy of the first trademark registration application document within three months; if no written statement is made or a copy of the trademark registration application document is not submitted within the time limit, priority shall be deemed not to be claimed.

Article 28 If a trademark is used for the first time on goods exhibited at an international exhibition sponsored or recognized by the Chinese government, within six months from the date of exhibition of the goods, the applicant for registration of the trademark may enjoy priority.

Those who claim priority in accordance with the preceding paragraph shall make a written statement when submitting the application for trademark registration, and submit within three months the name of the exhibition where the goods are exhibited, evidence of the use of the trademark on the goods on display, the date of exhibition and other supporting documents; if no written statement is made or supporting documents are not submitted within the time limit, it shall be deemed that priority has not been claimed.

Article 29 The matters reported and the materials provided for applying for trademark registration shall be true, accurate and complete.

Chapter 3 Review and Approval of Trademark Registration

Article 30 Any trademark applied for registration that complies with the relevant provisions of this Law shall be initially reviewed and announced by the Trademark Office.

Article 31 If a trademark applied for registration does not comply with the relevant provisions of this Law or is identical or similar to a trademark that has been registered or preliminarily approved by others on the same or similar goods, the Trademark Office will reject the application and will not publish it.

Article 32 During the examination procedure, if the Trademark Office believes that the contents of the trademark registration application need to be explained or amended, it may send an "Examination Opinion" to the applicant and require it to make explanations or amendments within thirty days from the date of receipt. If the applicant fails to respond within the time limit, it will not affect the decision of the Trademark Office.

Article 33 If two or more applicants for trademark registration apply for registration of identical or similar trademarks on the same goods or similar goods, the trademark applied for first will be preliminarily reviewed and announced; if applications are made on the same day, the trademark previously used will be preliminarily reviewed and announced, and the applications of others will be rejected and will not be announced.

Article 34 (Option 1)

Application for trademark registration shall not damage other existing prior rights of others, nor shall unfair means be used to preemptively register a trademark that has been used by others and has certain influence.

(Option 2)

Application for trademark registration shall not damage other existing prior rights of others, nor shall unfair means be used to preemptively register a trademark that has been used by others and has certain influence.

If the applied-for trademark is identical or similar to a trademark previously used by another person in China on the same or similar goods, and the applicant is aware of the existence of the other person’s trademark due to contracts, business dealings, geographical relations or other relationships with the other person, registration will not be granted.

If the trademark applied for registration is a copy of someone else’s registered trademark on different or similar goods that is highly distinctive and has a certain influence, and is likely to cause confusion, it will not be registered.

Article 35 If the Trademark Office discovers that a trademark that has been preliminarily approved and announced has violated the provisions of this Law, or has applied for registration by deception or other improper means, it may revoke the preliminary approval announcement before the trademark is approved for registration.

Article 36 For a trademark that has been initially approved, within three months from the date of announcement, if the prior right holder or interested party believes that the provisions of Articles 13, 15, 16, 31, 33, and 34 of this Law have been violated, they may file an objection with the Trademark Office. If there is no objection at the expiration of the announcement period, the registration will be approved, a trademark registration certificate will be issued, and the announcement will be made.

Article 37 For a trademark that rejects the application, refuses to announce it, or revokes the preliminary approval announcement, the Trademark Office shall notify the trademark registration applicant in writing. If the trademark registration applicant is dissatisfied, he may apply to the Trademark Review and Adjudication Board for review within thirty days from the date of receipt of the notice. The Trademark Review and Adjudication Board will make a decision and notify the applicant in writing.

If the party concerned is dissatisfied with the decision of the Trademark Review and Adjudication Board, it may file a lawsuit in the People's Court within thirty days from the date of receipt of the notice.

Article 38 If an objection is raised against a trademark that has been initially approved and announced, the Trademark Office shall listen to the facts and reasons stated by the opponent and the objected party, and after investigation and verification, make a decision on whether to approve registration, and notify the opponent and the objected party in writing.

If the Trademark Office makes a decision to approve registration, it will issue the trademark registration certificate to the opposed party and make an announcement. If the opponent is dissatisfied, he may request the Trademark Review and Adjudication Board to cancel the registered trademark in accordance with the provisions of Article 48 of this Law.

If the Trademark Office makes a decision not to grant registration and the opponent is dissatisfied, it may apply to the Trademark Review and Adjudication Board for review of denial of registration within 30 days from the date of receipt of the notice. If you are dissatisfied with the decision of the Trademark Review and Adjudication Board, you may file a lawsuit in the People's Court within 30 days from the date of receipt of the decision. The people's court shall notify the opponent to participate in the litigation as a third party.

Article 39 If a party fails to apply for review within the statutory period against the Trademark Office’s decision not to register in accordance with the provisions of Article 38 of this Law or does not file a lawsuit in the People’s Court against the review decision made by the Trademark Review and Adjudication Board, the decision not to register or the decision to review shall take effect.

For a trademark that is approved for registration if the objection is not established after examination, the time for the trademark registration applicant to obtain the exclusive right to trademark shall be calculated from the expiration of the three-month period of the preliminary examination announcement.

Article 40 Applications for trademark registration and trademark review shall be reviewed in a timely manner.

Article 41 If a trademark registration applicant or registrant discovers that there are obvious errors in the trademark application documents or registration documents, they may apply for correction. The Trademark Office shall make corrections within the scope of its powers in accordance with the law and notify the parties concerned.

The correction errors referred to in the preceding paragraph do not involve the substantive content of the trademark application documents or registration documents.

Chapter 4 Renewal, Change, Assignment, Transfer and Use License of Registered Trademarks

Article 42 The validity period of a registered trademark is ten years, calculated from the date of approval of registration.

Article 43 If a registered trademark expires and needs to be continued to be used, an application for renewal of registration shall be made within six months before expiration; if the application fails to be made during this period, a six-month extension period may be granted. If an application has not been made before the extension period expires, the registered trademark will be cancelled.

Each renewal of registration is valid for ten years.

After the registration renewal is approved, it will be announced.

Article 44 If a registered trademark needs to change the name, address or other registration matters of the registrant, an application for change shall be submitted. An application to change the name or address of the trademark registrant cannot be withdrawn once submitted.

If the name or address of the trademark registrant is changed, the trademark registrant shall change all registered trademarks together; if the changes are not made together, the Trademark Office will notify the trademark registrant to make corrections within a time limit; if the trademark registrant fails to make corrections within the time limit, the change application will be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Article 45 When transferring a registered trademark, the transferor and the transferee shall sign a transfer agreement and jointly submit an application to the Trademark Office. The transferee shall ensure the quality of the goods using the registered trademark.

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

When a registered trademark is transferred, the trademark registrant shall transfer the same or similar trademark registered on the same or similar goods together; if the trademark is not transferred together, the Trademark Office shall notify the trademark to make corrections within a time limit; if no correction is made within the time limit, the application for transfer of the registered trademark shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

If the transfer of a registered trademark may cause misunderstanding, confusion or other adverse effects, the Trademark Office will not approve it, but shall notify the applicant in writing and explain the reasons.

Article 46 If the exclusive right to use a registered trademark is transferred for reasons other than transfer, the party accepting the transfer of the exclusive right to use the registered trademark shall go to the Trademark Office to handle the transfer procedures of the exclusive right to use the registered trademark with the relevant supporting documents or legal documents. After approval by the Trademark Office, it will be announced, and the assignee will enjoy the exclusive right to use the trademark from the date of announcement.

When the exclusive right to a registered trademark is transferred, the same or similar trademarks registered by the holder of the exclusive right to the registered trademark on the same or similar goods shall be transferred together; if they are not transferred together, the Trademark Office shall notify the applicant to make corrections within a time limit; if no correction is made within the time limit, the application for transfer of the registered trademark shall be deemed to have been abandoned, and the Trademark Office shall notify the applicant in writing.

Article 47 A trademark registrant may authorize others to use its registered trademark by signing a trademark license contract. The licensor shall supervise the quality of the goods used by the licensee using its registered trademark. The licensee shall ensure the quality of the goods using the registered trademark.

If you use someone else’s registered trademark with permission, you must indicate the name of the licensee and the place of origin of the goods on the goods using the registered trademark.

If permitting others to use its registered trademark, the licensor shall submit its trademark use license to the Trademark Office for record, and the Trademark Office shall announce it. The trademark use license shall not be used against bona fide third parties without registration.

Chapter 5 Ruling on Registered Trademark Disputes

Article 48 If a registered trademark violates the provisions of Articles 10, 11, and 12 of this Law, or the registration was obtained by deception or other improper means, the Trademark Office shall revoke the registered trademark; other units or individuals may request the Trademark Review and Adjudication Board to rule on revoking the registered trademark.

If a registered trademark violates the provisions of Articles 13, 15, 16, 31, 33, and 34 of this Law, within five years from the date of trademark registration, the prior right owner or interested party may request the Trademark Review and Adjudication Board to rule on the cancellation of the registered trademark. For cases registered in bad faith, the owner of a well-known trademark is not subject to the five-year time limit.

After receiving the ruling application, the Trademark Review and Adjudication Board shall notify the relevant parties in writing and submit a defense within a time limit.

Article 49 For a registered trademark canceled in accordance with the provisions of Article 48 of this Law, the exclusive right to use the trademark shall be deemed to have ceased to exist from the beginning. Decisions or rulings regarding the cancellation of registered trademarks do not have retroactive effect on the judgments and rulings on trademark infringement cases made and executed by the People's Court before the cancellation, the handling decisions on trademark infringement cases made and executed by the industrial and commercial administration departments, and the trademark transfer or license contracts that have been performed before the cancellation; however, compensation shall be provided for losses caused to others due to the bad faith of the trademark registrant.

If failure to return trademark infringement compensation, trademark usage fees, and trademark transfer fees in accordance with the provisions of the preceding paragraph clearly violates the principle of fairness, all or part of the compensation shall be returned.

Article 50 After the Trademark Review and Adjudication Board makes a ruling to maintain or cancel a registered trademark, it shall notify the relevant parties in writing.

If the party concerned is dissatisfied with the ruling of the Trademark Review and Adjudication Board, it may file a lawsuit with the People's Court within thirty days from the date of receipt of the notice. The people's court shall notify the other party in the trademark adjudication procedure to participate in the litigation as a third party.

Chapter 6 Management of Trademark Use

Article 51 The use of trademarks as mentioned in this Law refers to the use of trademarks on goods, commodity packaging or containers and commodity transaction documents for production and business purposes, or the use of trademarks in advertising, exhibitions and other commercial activities, which is sufficient to make the relevant public think that it is used as a trademark.

Article 52 Anyone who uses a registered trademark and commits any of the following acts shall be ordered by the Trademark Office to correct or cancel the registered trademark within a time limit:

(1) Changing the registered trademark on his own initiative; (2) Changing the name, address or other registration matters of the registered trademark on his own initiative; (3) Transferring the registered trademark on his own initiative;

(4) Stopped from use for three consecutive years.

Article 53 If a registered trademark is used to produce shoddy goods, pass them off as good quality, and deceive consumers, the industrial and commercial administrative department shall, depending on the circumstances, order correction within a time limit, and may notify or impose a fine, or the Trademark Office may revoke the registered trademark.

Article 54 A registered trademark that has been revoked in accordance with the provisions of Articles 52 and 53 of this Law shall be announced by the Trademark Office; the exclusive right to use the registered trademark shall be terminated from the date of the Trademark Office’s cancellation decision.

Article 55 If a registered trademark is revoked or is not renewed upon expiration, within one year from the date of cancellation or cancellation, the Trademark Office will not approve other people’s trademark registration applications that are identical or similar to the trademark. However, this exception is the case where the registered trademark has been revoked due to suspension of use for three consecutive years.

Article 56 Anyone who violates the provisions of Article 6 of this Law shall be ordered by the local industrial and commercial administration department to apply for registration within a time limit and may be fined.

Article 57 Anyone who uses an unregistered trademark and commits any of the following acts shall be stopped by the local industrial and commercial administration department, corrected within a time limit, and may be notified or fined:

(1) Pretending to be a registered trademark;

(2) Violating the provisions of Article 10 of this Law;

(3) Shoddy manufacturing, passing off inferior products as good ones, and deceiving consumers.

Article 58 If the party concerned is dissatisfied with the Trademark Office’s decision to cancel a registered trademark, he may apply to the Trademark Review and Adjudication Board for review within thirty days from the date of receipt of the notice. The Trademark Review and Adjudication Board will make a decision and notify the applicant in writing.

If the party concerned is dissatisfied with the decision of the Trademark Review and Adjudication Board, it may file a lawsuit in the People's Court within thirty days from the date of receipt of the notice.

Article 59 If the party concerned is dissatisfied with the penalty decision made by the administrative department for industry and commerce in accordance with the provisions of Articles 52, 53, 56, and 57 of this Law, he may file a lawsuit with the People's Court within two months from the date of receipt of the decision; if he fails to file a lawsuit and fails to perform the penalty within the period of time, the administrative department for industry and commerce that made the decision to impose the penalty shall apply to the People's Court for enforcement.

Chapter 7 Protection of exclusive rights to registered trademarks

Article 60 The exclusive right to register a trademark is limited to the trademark approved for registration and the goods approved for use.

Article 61 Anyone who commits any of the following acts shall infringe upon the exclusive right to use a registered trademark:

(1) Using an identical or similar trademark on the same or similar goods without the permission of the trademark registrant;

(2) Selling goods that infringe the exclusive right to use a registered trademark;

(3) Counterfeiting or unauthorized manufacturing of other people’s registered trademarks or selling counterfeit or unauthorized registered trademarks;

(4) Changing the registered trademark without the consent of the trademark registrant and putting the goods with the replaced trademark back on the market;

(5) Using signs that are identical or similar to others’ registered trademarks as trade names or product decorations on the same or similar goods to mislead the public;

(6) Deliberately providing warehousing, transportation, mailing, concealment and other convenient conditions for infringement of other people's exclusive rights to trademarks;

(7) Causing other damage to others' exclusive rights to registered trademarks.

Article 62: If the use of someone else’s well-known trademark as a trade name in a business name may deceive the public or cause misunderstanding to the public, the trademark owner may file a lawsuit in the People’s Court, or may request the industrial and commercial administration department at or above the provincial level to order the company to stop using the name or to register a change of business name.

Article 63 The owner of the exclusive right to a registered trademark has no right to prohibit others from using the following content in a registered trademark:

(1) The common name, graphics, and model of the product;

(2) Content that directly expresses the quality, main raw materials, functions, uses, weight, quantity, and other characteristics of the product;

(3) Place name;

(4) Shape resulting from the nature of the commodity itself;

(5) Shape of the commodity required to obtain technical effects;

(6) Shape that gives the commodity substantial value.

Article 64: If a dispute arises from any of the acts that infringe on the exclusive right to use a registered trademark as listed in Article 61 of this Law, the parties shall resolve the dispute through negotiation; if the parties are unwilling to negotiate or the negotiation fails, the trademark registrant or interested party may bring a lawsuit to the People's Court or request the industrial and commercial administrative department to handle the matter. When the industrial and commercial administration department determines that the infringement is established, it may order the infringement to cease immediately, confiscate and destroy the infringing goods and tools specifically used to manufacture infringing goods and counterfeit registered trademarks, and may impose a fine. Anyone who commits more than two trademark infringements within five years shall be severely punished. If the party concerned is dissatisfied with the handling decision, he or she may file a lawsuit with the People's Court in accordance with the Administrative Litigation Law of the People's Republic of China within two months from the date of receipt of the handling notice; if the infringer neither files a lawsuit nor performs the case upon expiration of the time limit, the administrative department for industry and commerce may apply to the People's Court for compulsory enforcement. The industrial and commercial administrative department that handles the case may mediate the amount of compensation for infringement of trademark exclusive rights at the request of the parties; if mediation fails, the parties may file a lawsuit in the People's Court in accordance with the Civil Procedure Law of the People's Republic of China.

Article 65: The industrial and commercial administrative department has the right to investigate and deal with any infringement of the exclusive rights of registered trademarks in accordance with the law; if a crime is suspected, it shall be promptly transferred to the judicial authority for handling in accordance with the law.

Article 66 When the industrial and commercial administrative department at or above the county level investigates and handles suspected infringement of the exclusive right to use registered trademarks of others based on the obtained evidence or reports of suspected violations, it may exercise the following powers:

(1) To inquire about the relevant parties and investigate the situation related to the infringement of the exclusive right to use registered trademarks of others;

(2) Review and copy the parties’ contracts, invoices, account books and other relevant materials related to the infringing activities;

(3) Conduct on-site inspections of the places where the parties are suspected of engaging in activities that infringe on the exclusive rights of others’ registered trademarks;

(4) Inspect items related to infringing activities; items that are evidenced to infringe the exclusive rights of others’ registered trademarks may be sealed or detained.

When the administrative department for industry and commerce exercises the powers stipulated in the preceding paragraph in accordance with the law, the parties concerned shall assist and cooperate and shall not refuse or obstruct.

The industrial and commercial administrative department may suspend the investigation and handling of the case based on specific circumstances that may affect the outcome of the case.

Article 67 The amount of compensation for infringement of the exclusive right to use a trademark shall be determined based on the actual losses suffered by the right holder due to the infringement; if the actual losses are difficult to determine, the amount of compensation shall be determined based on the benefits obtained by the infringer due to the infringement. The amount of compensation should include the reasonable expenses paid by the right owner to stop the infringement.

If the actual losses suffered by the right holder due to infringement as mentioned in the preceding paragraph, or the benefits obtained by the infringer due to infringement are difficult to determine, the people's court shall award a compensation of not more than one million yuan based on the circumstances of the infringement.

If you sell goods that are not known to infringe the exclusive rights of a registered trademark, and you can prove that you obtained the goods legally and explain the supplier, you will not be liable for compensation.

When the owner of the exclusive right to a registered trademark requests compensation, he should provide evidence of the use of the registered trademark within the previous three years and other relevant evidence.

Article 68 If a trademark registrant or interested party has evidence to prove that others are committing or about to commit acts that infringe upon the exclusive right to use a registered trademark, and if they are not stopped in time, their legitimate rights and interests will be irreparably damaged, they may apply to the People's Court for measures to order the cessation of the relevant acts before filing a lawsuit.

When applying, the applicant shall provide a guarantee; if the applicant fails to provide a guarantee, the application shall be rejected.

The People’s Court shall make a ruling within 48 hours from the time of accepting the application; if there are special circumstances that require an extension, it may be extended for 48 hours. If a ruling orders the cessation of relevant conduct, it shall be implemented immediately. If the parties are dissatisfied with the ruling, they may apply for reconsideration once; the execution of the ruling will not be suspended during the review period.

If the applicant does not file a lawsuit within 15 days from the date when the People's Court takes measures ordering the cessation of relevant conduct, the People's Court shall terminate the measures.

If there is an error in the application, the applicant shall compensate the respondent for the losses caused by stopping the relevant behavior.

Article 69: In order to prevent infringement, if the evidence may be lost or difficult to obtain later, the trademark registrant or interested party may apply to the People's Court for the preservation of evidence before filing a lawsuit.

After accepting the application, the People's Court must make a ruling within 48 hours; if it decides to take preservation measures, its implementation shall begin immediately.

The People’s Court may order the applicant to provide a guarantee. If the applicant fails to provide a guarantee, the application shall be rejected.

If the applicant does not file a lawsuit within fifteen days after the People’s Court takes preservation measures, the People’s Court shall terminate the preservation measures.

Article 70 If the use of a trademark identical to the registered trademark on the same product without the permission of the trademark registrant constitutes a crime, in addition to compensating the losses of the infringed party, criminal liability will be pursued in accordance with the law.

If forgery or unauthorized manufacture of registered trademarks of others or sale of counterfeit or unauthorized registered trademarks constitutes a crime, in addition to compensating the losses of the infringed party, criminal liability shall be pursued in accordance with the law.

If selling goods that are knowingly counterfeit registered trademarks constitutes a crime, in addition to compensating the losses of the infringed party, criminal liability will be pursued in accordance with the law.

Article 71 State agency staff engaged in trademark registration, management and review must enforce the law impartially, be honest and self-disciplined, be loyal to their duties, and serve in a civilized manner.

Employees of the Trademark Office, Trademark Review and Adjudication Board and state agencies engaged in trademark registration, management and review are not allowed to engage in trademark agency business and commodity production and operation activities.

Article 72 The industrial and commercial administrative department shall establish and improve an internal supervision system to supervise and inspect the implementation of laws, administrative regulations and compliance with disciplines by state agency staff responsible for trademark registration, management and review.

Article 73 If state agency staff engaged in trademark registration, management and review work neglect their duties, abuse their power, practice favoritism, handle trademark registration, management and review matters illegally, accept property from parties, and seek illegitimate interests, which constitutes a crime, they shall be investigated for criminal responsibility in accordance with the law; if it does not constitute a crime, they shall be punished in accordance with the law.

Chapter 8 Supplementary Provisions

Article 74 When applying for trademark registration and handling other trademark matters, fees must be paid. The specific fee items and standards shall be stipulated and announced by the finance department and price department of the State Council in conjunction with the national industrial and commercial administration department.

Article 75 This Law shall come into effect on March 1, 1983. The "Trademark Management Regulations" promulgated by the State Council on April 10, 1963 shall be abolished at the same time; other provisions related to trademark management that conflict with this Law shall be invalid at the same time.

Trademarks that have been registered before the implementation of this law will continue to be valid.