24/07/2017
Re.: How to avoid a registered trademark being canceled on grounds of non-use in China
1. In the current examination practice in China, the applicant shall not bear any burden of proof when filing a Request for Cancellation of registration grounded on non-use for a period of three consecutive years without any justified cause. The applicants in China can just file the request for cancellation without doing any investigation or providing any evidence.
Therefore, filing a Request for Cancellation of a registered trademark grounded on non-use for a period of three consecutive years without any justified cause has become a preferred weapon used by the accused infringer to respond to lawsuits in most trademark infringement lawsuits in China.
2. For the current cancellation requests on the ground of non-use in China, most trademark registrants shall bear the obligation to submit use evidence of his trademark during the period immediately preceding the filing date of the cancellation request.
The requirements for submitting use evidences of a registered trademark are that the registrant shall submit ample evidence of use proving the goods and/or services bearing the registered trademark have been publically, consecutively and commercially put into the market in China and can be identified by related consumers.
The requirements above also apply to the licensee where a license agreement to use the registered trademark has been reached between the owner and the licensee.
3.How to avoid the registered trademark not used in China from being canceled
There are two strategies prevalently adopted by registrants to fight against the cancellation action on the ground of non-use for three consecutive years without justified causes:
a. Consecutive application for registration
In other words, the applicant may file, every two years, a new trademark application for the identical mark covering identical goods as the registered trademark which has not been used so that the new trademark application may be approved even if the registered trademark is eventually canceled.
Although, the above is an effective counter measure with minimum costs, certain flaws do exist, namely, the new trademark application for registration may still be refused by China Trademark Office due to the principle of “individual examination for each case”.
b. Acquire valid use evidence of the trademark through true distribution
As stated in Part (III), evidence of use shall prove the goods and/or services bearing the registered trademark have been publically, consecutively and commercially put into the market in China and can be identified and purchased by related consumers.