In China, trademarks follow a first-to-file system. This means the party who files the trademark application first obtains the exclusive right. Many overseas brands suffer from trademark squatting before officially entering the Chinese market. Resolving squatting issues through opposition, invalidation or trademark acquisition usually costs huge time and money.

Taking proactive measures can effectively avoid such risks.

Practical Ways to Prevent Trademark Squatting

1. Conduct trademark search before entering the market

Before launching products, attending exhibitions or selling on cross-border platforms, complete a preliminary trademark clearance search. It helps you check identical or similar existing marks and identify potential squatting risks in advance.

2. File your trademark as early as possible

Do not wait until your official product launch. Once you plan to expand into China, start your trademark application immediately. You should also register your Chinese brand name together with your English mark for full protection.

3. Register multi-class defensive trademarks

Besides your core business class, register related defensive classes. This closes the protection loopholes and prevents others from squatting your brand on related products or services.

4. Add IP clauses in cooperation contracts

Distributors and business partners are high-risk groups for trademark squatting. Your contract should clearly state that all brand rights belong exclusively to your company and prohibit partners from registering your brand or any similar variations.

5. Maintain regular trademark monitoring

Trademark protection is long-term. Continuously monitor newly published trademark applications. If any similar mark appears, file an opposition within the official time limit to block squatting registration.

6. Preserve brand usage evidence

Keep all brand materials, including official websites, promotional content, exhibition records and sales documents. In case of disputes, prior usage evidence is critical to fight bad-faith squatting. You may also register copyright for your brand logo to strengthen your rights.

What to Do If Your Trademark Is Already Squatted

• File trademark opposition during the publication period.
• Apply for trademark invalidation within 5 years after the squatting mark is registered.
• Collect your prior usage evidence and the squatter’s bad-faith evidence.
• Entrust a professional Chinese IP agency to handle the official procedure.

Final Tips

Trademark protection is always better in advance than after trouble occurs. Pre-filing search and strategic registration can help foreign brands avoid huge losses in the Chinese market.

IPUVCHINA provides free preliminary trademark search for overseas companies. Send your brand name and target classes to us to get your professional risk assessment and filing suggestions.