Why Your US Trademark May Not Protect You in China
If your business owns a registered trademark in the United States, you may assume your brand is protected when you manufacture, source, or sell products in China. Unfortunately, that assumption can expose your business to significant legal and commercial risks.
A US trademark registration does not automatically give you registered trademark rights in China. Trademark rights are generally territorial. A trademark registered with the United States Patent and Trademark Office (USPTO) primarily provides protection under US law. China has its own trademark registration and protection system.
This means that even if you have used your brand in the United States for many years, another party may apply to register the same or a similar trademark in China. Depending on the circumstances, that registration could create legal and commercial difficulties for your business.
Foreign trademark owners may have other grounds for protection under Chinese law, including certain prior rights, prior use, or bad-faith registration rules. However, these protections depend on the facts and evidence.
What Happens If Someone Registers Your Brand in China?
Consider a hypothetical example. An American company has sold backpacks under the brand 'ABC OUTDOOR' since 2019. The company owns a US trademark registration but has never applied for trademark protection in China.
In 2024, a Chinese company registers an identical trademark for backpacks in China. The American company later discovers the registration when planning to expand its manufacturing operations.
Potential problems may include: trademark infringement allegations involving activities in China; disputes with Chinese manufacturers or distributors; difficulties entering the Chinese market; disruptions involving goods, distribution, or commercial arrangements; and additional legal costs to challenge the Chinese registration.
The actual legal consequences depend on the relevant trademark rights, products, business activities, and applicable law.
Can You Challenge a Trademark Registered by Someone Else?
Possibly. Chinese trademark law provides several mechanisms for challenging certain registrations.
Trademark invalidation: If the registration violates relevant provisions of Chinese trademark law, the legitimate rights holder may have grounds to request invalidation.
Bad-faith registration arguments: Evidence that the registrant knew of your brand, had a relevant business relationship with your company, or engaged in improper registration conduct may be important.
Non-use cancellation: Under the applicable rules, a registered trademark may be vulnerable to cancellation if it has not been used for three consecutive years without a justifiable reason.
However, not every registration can be successfully challenged. The legal grounds, evidence, registration dates, and applicable deadlines must be carefully evaluated.
What If Your Chinese Manufacturer Registers Your Trademark?
This situation deserves particular attention. Suppose your American business has worked with a Chinese manufacturer for several years. You have provided the factory with branded packaging, product specifications, and manufacturing instructions.
The manufacturer then applies to register your brand in China without authorization. Under certain circumstances, the business relationship and evidence of the manufacturer's prior knowledge may support a challenge to the registration.
Important evidence may include: manufacturing and supply agreements; purchase orders and invoices; emails discussing the brand; product designs and packaging files; and records showing when the manufacturer first learned of the trademark.
The absence of a specific trademark ownership clause does not necessarily mean that the manufacturer is entitled to register the brand. The legal outcome depends on the facts and applicable Chinese law.
How Can American Companies Reduce Trademark Risks in China?
Before entering into a manufacturing or distribution relationship, businesses should consider several preventive steps.
Step 1: Conduct a China trademark search. Check whether identical or potentially conflicting trademarks have already been applied for or registered.
Step 2: Consider Chinese trademark registration. Assess the relevant classes and goods or services based on your actual business activities.
Step 3: Review supplier agreements. Clearly address trademark ownership, authorized use, confidentiality, product designs, and restrictions on unauthorized registration.
Step 4: Preserve evidence. Maintain records showing the creation, ownership, use, and commercial history of your brand.
Step 5: Obtain legal advice before a dispute escalates. Early assessment may help identify available options and avoid unnecessary costs.
How Can a China-Qualified Lawyer Help?
A China-qualified lawyer can assist foreign businesses with matters such as: preliminary Chinese trademark searches and risk assessments; trademark ownership and registration disputes; supplier intellectual property agreements; evidence collection and legal strategy; trademark invalidation proceedings, where appropriate; and China-related intellectual property litigation and dispute resolution.
The appropriate approach depends on the business objectives, available evidence, and legal risks.
Need Help Protecting Your Trademark in China?
If your company owns a brand in the United States and manufactures, sources, or plans to sell products in China, consider reviewing your trademark position before a dispute occurs.
Our practice assists foreign businesses with China-related commercial contracts, intellectual property risk assessments, and dispute resolution.
Contact us to discuss a preliminary China trademark risk assessment.
Email: lawyermichaelcn@outlook.com | Phone: +86 158 1078 8943
Disclaimer: This article provides general information about Chinese trademark law as of October 2026 and does not constitute legal advice. Legal requirements and available remedies depend on the specific facts and applicable law.
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