After decades of rapid development, the mighty force of consumerism has taken hold in China. The growing middle class here has been eager to buy luxuries, cellphones and cars. A recent report by Standard & Poor’s states that retails in China will hit a stunning amount of $5.8 trillion and overtake the US to become the largest consumer market by 2019. There is no doubt that such a burgeoning market will bring huge business opportunities to enterprises from all over the world. Obviously, it‘s a smart move to have their trademark registered for those who are planning to exporting to China.

Prevent squatting

In the United States and many other countries, it is not registration, but actual use of a mark that creates exclusive rights and priority over others. However, the rule in China is completely different, the ownership of a trademark follows the first-to-use system rather than first-to-file system, which means the rights are granted to who that files the trademark first. The first-to-file system has enhanced efficiency of trademark registration, but on the other hand, makes squatting a common problem in China. Thus, to file your application as early as possible is the most reliable way to protect your IP and prevent other people from taking it.

Crack down counterfeits

Considering the fact that China produces 80% of the world’s counterfeits, to stop counterfeit from the source, it has been “absolutely essential” to register your trademark in China. With the improvement of Chinese legal system, today a China trademark gives the rights owner more exclusive rights than ever. You can easily stop counterfeits from being exported by claiming your rights at the customs, or simply remove infringing listings from China’s largest ecommerce platforms like Taobao and Alibaba.

Contact info@cbecasia.com for more details about how to register trade marks in China, including upcoming webinars focused on digital asset protection.