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China Tries to Reduce Malicious Hoarding of Trademarks

China Strives to reduce Malicious Hoarding of Trademarks. China found out that very few numbers of applicants tried to register trademarks beyond the normal business needs and transfer the hoarded trademarks to the actual users at a high price for seeking illegitimate benefits.

For instance, Guangzhou 4399 Information Technology Co., Ltd. applied for more than 9000 trademarks, out of which 210 were opposed by different rights holders while the Trademark Office (TMO) handled 39 trademarks in question; Shanghai Wuyue Information Technology Co., Ltd. filed more than 500 trademark applications, out of which 77 were opposed by different rights holders while the TMO dealt with the 13 trademarks in question. In the above mentioned cases, the TMO rejected the challenged marks.

It has been openly pointed out that malicious hoarding of trademarks is a key target of trademark administrative authorities by Cai Qiongyan, director of the Comprehensive Division of the Trademark Review and Adjudication Board (TRAB) and Fan Yali, deputy director of Division of Trademark Examination Administration of the TMO.

The authorities have taken intelligent measures to classify acts of squatting with bad faith and would take hoarding trademark resources, frequently squatting well-known trademarks, damaging legitimate rights and interests of trademark right holders as reference to maliciousness determination.

At this year’s National Court of Intellectual Property Trial Work Conference it has been noted by the vice president of the Supreme People’s Court Mr. Tao Kaiyuan that the People’s Court should curb malicious hoarding behavior of trademark registration based on the spirit of the intent of real use of trademark registration.

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