Under Chinese trademark law, a collective mark may be granted to any group, association, or organization for the exclusive use of its members as an indication of their membership. The purpose of a collective mark is to show that the goods or services provided by those businesses have similar qualities, and businesses are entitled to use collective marks under their own trademarks.
China’s Trademark Act permits the registration of collective marks. Under the act, collective marks are jointly owned by a group of individuals, entities, or organizations, rather than by a single person, and marks show an origin in a collective organization, such as a trade association, chamber of commerce, or other industry group. Collective marks do not reveal the source of the goods or services, as membership information is not disclosed, thereby emphasizing the collective nature of this approach.
The application process for a collective mark in China is structured to emphasize that the members are applying for ownership in the name of their collective organization. Therefore, only collective organizations with separate legal personalities are eligible to apply for a collective mark, as only legal entities are entitled to exclusive ownership of trademark rights. While the organization owns the trademark, it does not use it; instead, its individual members will each use the mark collectively. Only organizational members are entitled to use the mark, and they are each granted equal rights to its use even if they are not otherwise affiliated with each other. Additionally, they must monitor how the collective organization members use the mark and penalize violators.
Chinese trademark law also allows for the registration of geographic indications as collective marks. A geographical indication can be registered in the name of a group, which must then admit individuals, legal entities, or organizations from the geographical region to the group in accordance with its charter. Businesses that are not admitted to groups that own collective marks may still make legitimate use of the geographical indications, and in these cases, the collective organizations will not be allowed to prohibit their use.
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