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New Rules, New Risks: Navigating China’s 2027 Trademark Law

On 26 June 2026, the Standing Committee of the 14th National People’s Congress passed a landmark revision of the Trademark Law of the People’s Republic of China, which will come into force on 1 January 2027. This marks the first comprehensive overhaul since the law’s introduction in 1983, expanding the framework from 8 chapters and 73 articles to 9 chapters and 87 articles.

More significantly, the revision reflects a fundamental shift in legislative philosophy – from a system that primarily encouraged registration to one that emphasizes genuine use and market order. For brand owners operating in or entering China, the transition period leading up to 2027 is strategically important.

Key Legislative Shifts

The revised law introduces several structural changes that will directly impact trademark filing and enforcement strategies.

1. Stricter Controls on Malicious Filings

The new law explicitly prohibits trademark applications filed without intent to use and exceeding normal business needs. To enforce this, the authorities have introduced quantitative examination criteria in updated guidelines:

• Applying for 50 or more trademarks within 12 months without a clear commercial rationale
• Filing 10 or more trademarks across unrelated industries in a single batch
• Targeting well-known names, internet trends, or generic industry terms

Applications meeting these thresholds may be rejected at the examination stage, and applicants risk being placed on regulatory watchlists. This signals a decisive move against trademark hoarding and bad-faith filings.

2. Increased Liability for Deceptive Use

The law now classifies misleading use of registered trademarks as a punishable offence. This includes branding strategies that rely on wordplay or presentation likely to confuse consumers.

Penalties may reach up to five times the illegal gains, capped at RMB 250,000. Failure to rectify violations within a prescribed period may result in revocation of the trademark registration.

3. Recognition of Digital Use

Trademark “use” is now expressly extended to online and digital environments. Acceptable evidence includes:

• E-commerce listings and online storefronts
• Social media accounts and promotional content
• Livestreaming and digital marketing activities
• NFTs and digital collectibles displaying the mark

This clarification significantly lowers evidentiary uncertainty for online businesses and aligns the law with modern commercial practices.

4. Expanded Protection for Unregistered Well-Known Marks

Foreign brand owners entering China may benefit from enhanced protection even prior to registration. The revised law allows recognition of well-known trademark status, which can be invoked to support invalidation or opposition actions against bad-faith filings across different classes.

Enhanced Regulatory Oversight

The revised law also strengthens enforcement mechanisms and imposes greater compliance obligations.

1. Proactive Revocation for Non-Use

Authorities are now empowered to initiate revocation actions against trademarks that have not been used for three consecutive years, without requiring a third-party challenge. This increases the risk of maintaining defensive or unused registrations.

2. Earlier Evidence Cut-Off

The evidentiary window for proving use has shifted to the three years preceding the alleged infringement, rather than the commencement of legal proceedings. This limits the effectiveness of last-minute or “token” use.

3. Shortened Opposition Period

The opposition period has been reduced from three months to two months, requiring more efficient trademark monitoring and faster decision-making by brand owners.

4. Increased Liability for Trademark Agencies

Trademark agencies that knowingly assist in bad-faith filings may face administrative penalties, including suspension or revocation of their business licences. This is likely to improve overall filing quality and professional accountability.

New Types of Protection and Procedural Changes

The revision also introduces protections for emerging forms of branding and tightens procedural strategies.

• Dynamic trademarks, including animated logos and sequential marks, are now explicitly recognised
• Limitations have been placed on delaying tactics in examination and litigation, reducing opportunities for procedural abuse

Practical Implications for Brand Owners

The 2027 Trademark Law signals a transition from a volume-driven filing strategy to one focused on substantiated commercial use. Businesses should:

• Review existing portfolios to identify unused or vulnerable marks
• Ensure consistent and well-documented use, particularly in digital channels
• Reassess filing strategies to avoid excessive or unjustified applications
• Strengthen monitoring systems to meet shorter opposition timelines

For example, a company that previously filed broad defensive applications across multiple unrelated classes may now face rejection or regulatory scrutiny. A more targeted, use-based filing strategy supported by evidence will be essential.

Conclusion

China’s revised Trademark Law represents a decisive move toward a more disciplined and use-oriented trademark system. The emphasis is no longer on securing as many registrations as possible, but on demonstrating genuine commercial use and maintaining orderly competition.

Brand owners who proactively adapt their strategies – by aligning registrations with actual business activities and strengthening evidence of use – will be better positioned to protect and enforce their rights in this evolving legal landscape.

Disclaimer: This article is for reference only. Nothing herein shall be construed as Hong Kong legal advice or any legal advice for that matter to any person. Oldham, Li & Nie shall not be held liable for any loss and/or damage incurred by any person acting as a result of the materials contained in this article.

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