05

2023-07

How can a principal deal with trademark squatting by an agent in business?

Article 15 of the Trademark Law stipulates that if an agent or representative registers a trademark of the principal or represented party in their own name without authorization, and the principal or represented party objects, the registration will not be granted and the use will be prohibited. If a trademark applied for registration for the same or similar goods is identical or similar to an unregistered trademark used by another party prior to the application, and the applicant has a contractual, business, or other relationship with the other party other than those stipulated in the preceding paragraph, and is aware of the existence of the other party's trademark, and the other party objects, the registration will not be granted. In commercial practice, especially in international business dealings, it is common for agents or representatives (hereinafter referred to as "agents") to register trademarks of the principal or represented party (hereinafter referred to as "principal") in their own names without authorization. In Chinese judicial practice, the vast majority of cases applying Article 15, paragraph 1 of the Trademark Law are disputes caused by goods crossing borders but trademark registration failing to cross borders. The reason for these disputes is that the principal's trademark has not been applied for registration in the jurisdiction where the agent is selling the goods. How to protect the trademark rights of the principal should be taken seriously by the principal. In reality, when a principal's products want to quickly enter foreign markets outside their home country, they often choose a distributor franchise model at the beginning, because in the principal's view, distributors in other countries are more familiar with the local market, have mature marketing advantages and established consumer groups. This agency model can quickly promote and integrate the principal's products and brands into the local market. At that time, the principal only applied for trademark registration in the home country, ignoring the provision that trademark protection is subject to geographical limitations, and the exclusive right to use the trademark obtained in the home country does not automatically extend to other countries outside the home country. The agency relationship should be a special legal relationship with dependence, and the agent owes the principal special duties of loyalty and diligence, and should perform their duties diligently and act in accordance with the principle of maximizing the interests of the principal. However, in fact, agents often register the principal's trademarks, so the principal itself needs to do a good job in trademark protection, and apply for trademark registration before the products enter other countries outside the home country, to prevent agents from registering trademarks during cooperation from the source. If a dispute arises over an agent registering a trademark, the principal can maintain its trademark rights by collecting and organizing the following evidence: 1. The principal can provide evidence of its application, registration, or use of the trademark in its own name in its home country to prove ownership. 2. The principal determines the ownership of the trademark rights through prior use or agreement with the agent. 3. The authorization agency (distribution) agreement issued by the principal to the agent. 4. Business correspondence between the principal and the agent, product supply and sales contracts, customs clearance lists, express delivery documents, etc. In short, doing a good job in trademark layout in advance and applying for trademark registration in time is the best way to deal with squatting. If timely application for registration is not done, then preserving evidence of trademark use and business documents with the agent is a favorable support for trademark squatting disputes.

05

2023-07

Progress of Zhongbei Rights Protection

On the afternoon of March 28, 2023, Zhongbei dispatched lawyer Li Ting and her assistant Song Yu to present a banner reading "Impartial Law Enforcement, Dedicated Performance of Duties" to the Houshayushu Office of the Shunyi District Market Supervision and Administration Bureau in Beijing. This was to express gratitude for their proactive efforts in serving the public, protecting the legitimate rights and interests of enterprises, and cracking down on unfair competition and infringement. Established in 1992, Zhongbei was one of the first trademark agencies designated by the State Administration for Industry and Commerce. After more than 30 years of development, Zhongbei now includes four companies: Beijing Century Ocean Intellectual Property Agency Co., Ltd., Beijing Zhongzhi Fuyuan Intellectual Property Agency Co., Ltd., and Beijing Beishang Law Firm.

05

2023-07

Zhongbei Intellectual Property was rated as a "AAA" level intellectual property service agency

On March 31, 2023, the Capital Intellectual Property Service Industry Association announced the results of the 2022 intellectual property service agency rating, and Beijing Zhongbei Intellectual Property Agency Co., Ltd. was awarded the "AAA" grade intellectual property service agency.

05

2023-07

Evidence of trademark use

Friendly reminder: Trademark registrants are advised to start preserving evidence of trademark use now to prepare for handling various potential trademark cases in the future!

05

2023-07

The State Administration for Market Regulation released the "Enforcement Guidelines on Absolute Terms in Advertising"

09

2023-02

In 2023, we celebrate the "can-do" attitude and groundbreaking work of women inventors, creators, and entrepreneurs around the world.

On January 29, 2023, the World Intellectual Property Organization (WIPO) released the theme for World Intellectual Property Day 2023: Women and Intellectual Property: Accelerating Innovation and Creativity. Today, women make up nearly half of the world's population (49.58%). While women around the world are using their intelligence to create and change the world, they also encounter more difficulties and challenges in this process. To encourage more female creators and innovators, it is particularly important to enable women to benefit more from the intellectual property system, integrate women into the intellectual property system, and accelerate innovation, creation, and business growth. This year's