The problem of misappropriation
In 2019, there were approximately 783.7 million trademark applications filed in China, with approximately 1 applications filed per day and approximately 2.1 million registered trademarks, making China the world leader in terms of the number of applications, surpassing the U.S. and Japan. This is thought to be due to the fact that companies from all over the world are seeking to secure trademark rights first in order to enter the rapidly expanding Chinese market.
For Chinese companies, securing trademark rights in the country is becoming increasingly important in order to eliminate counterfeit products and expand their own market share. In this context, so-called misappropriated applications, in which unrelated third parties apply for and register trademarks of Japanese companies that are not registered in China, have become a major problem.
In particular, in China, foreign place names are not subject to registration (Article 10 of the Trademark Law) unless they are well known to the public, and Japanese place names and regional brands are being applied for and registered by third parties, which has become a major problem.
A regional brand name used at events introducing Japanese industry in China was applied for and registered by a Chinese individual, and Japanese organizations that actually use the regional brand are suffering major disadvantages, such as being unable to sell products using the brand name in China. It was also in the news when Arita Town in Saga Prefecture and the Saga Prefecture Ceramic Industry Cooperative Association requested the China Trademark Office to cancel the registered trademark "Arita ware (figure)," and the trademark registration in China was cancelled.
Even in cases of misappropriation, if the character structure is different, the trademark may be registered even if it looks similar. In this case, the registration must be cancelled by an interested party or right holder. The key points in determining whether an opposition will be accepted are whether the trademarks are similar as a whole and whether there was any malice involved. In addition, due to safety issues, arguments in oppositions tend to be accepted for trademarks related to products and services related to life.
Countermeasures include filing applications for similar trademarks that require protection, utilizing trademark watching, and securing evidence of use in China.