In China’s trademark laws, the exclusive rights in a trademark refer to the legal rights granted to a trademark owner, preventing others from using the same mark on their own goods or services. The trademark system is a key part of the socialist market economy. Chinese historians point out that the country has used branding since ancient times, which shows the close connection between trademarks and economic progress.
However, significant developments in Chinese trademark law started in the 1980s. The evolution of the socialist market economy policy made exclusive rights protection for trademarks indispensable. Trademarks are now a well-recognized form of intellectual property by the public in China. In recent decades, China has implemented a legal system and administration for enforcing trademark rights.
Legal Aspects
Chinese legal theorists believe that rapid regulatory protection is more efficient than litigation for protecting exclusive rights. Regulatory enforcement of exclusive rights is currently about 90% of the trademark office’s caseload. Rapid regulatory enforcement is typically achieved by issuing a cease and desist order to the infringer. Administrative agencies can reach decisions much faster than the courts, even for difficult questions that require escalating issues.
Administrative agencies have a wide range of techniques at their disposal to take enforcement action against suspected infringements, including questioning, reviews, investigation, and injunctive orders. They also have a variety of penalties available to them, including injunctions, seizures, and destruction of infringing marks and the goods bearing these marks, in addition to fines. The administrative agency can also order the infringer to pay damages if requested by a party.
Business regulators are authorized to regulate how trademarks are used and may take enforcement action if they believe there may be infringement. The owner of the trademark exclusive rights or ordinary consumers who discover infringement may file a complaint with the local business regulator’s office.
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