The National People’s Congress of the People’s Republic of China (PRC) passed the latest amendment to the PRC Trademark Act on August 30, 2013. The amended articles will be in effect from May 1, 2014. Contents of this amendment are briefly listed as follows:

1. New regulations to facilitate the trademark applications: 

A. The “sound” has become eligible for trademark applications now. 
B. Applicants may file for one trademark in multiple classes by submitting a single application form. 
C. A timeline for examining trademark applications will be added. The Trademark Office is required to complete examination of a new trademark application after receiving the required documents; the Trademark Review and Adjudication Board is also required to render its decision within 9 months for a review on refusal of a trademark application. However, the period can be extended for 3 months after receiving the permission of the administrative authority for industry and commerce under the State Council. In addition, the Trademark Office should decide if an opposed trademark could be registered within 1 year from expiration of the time limit, which starts from the date of publication; such period could be extended for 6 months after receiving the permission of the administrative authority for industry and commerce under the State Council.
D. Only prior right holders or interested parties are allowed to file trademark oppositions after the amendment (current provision: anyone may file trademark oppositions). 
E. The Trademark Office will issue trademark certificates and publish the trademark if it has decided to approve registration. However, the opponent may still file an invalidation action to the Trademark Review and Adjudication Board and ask them to invalidate such trademark. 
F. Trademark registrants should renew their trademark 1 year before the expiry date (current provision: 6 months) if they desire to use such trademark after the original expiry date.

2. New amendments to maintain the market order and fair competition:

A. Product manufacturers or distributors shall not utilize the term “well-known trademarks” on their products, packaging, advertisements or any other commercial activities.
B. Utilizing well-known trademarks of another person as part of the company name therefore causing confusion to public will be regarded as unfair competition.
C. The trademark shall be rejected for registration if the trademark is identical or similar to another person’s prior-used yet unregistered mark and is for use on identical or similar goods, and the applicant knew the existence of another person’s mark through contractual, business or other relationship with said person, and said person filed an opposition.
D. Trademark agencies may not apply trademark registrations unless being entrusted by the trademark owner since some China trademark agents act as trademark “cybersquatters” by registering various trademarks or well-known trademarks and then sell them to buyers. In addition, trademark agencies shall maintain trade secrets of their customers; trademark agencies shall inform their customers if their trademark registration is to possibly be refused; trademark agencies may not be entrusted to apply for registration involving trademark “cybersquatting”. In violation of the above, the trademark agency may liable for administrative and/or criminal responsibilities such as a fine between 10,000 to 100,000 RMB and even cease from business operation.

3. Amendments to enhance the protection of trademark rights: 

A. The fine imposed for trademark infringement is raised, and punishment for infringers who commit trademark infringement for two times or more within five years shall be aggravated. Punitive damages may be imposed to malicious infringers whose infringement is serious. 
B. The People’s Court is entitled to render damages for no more than 3 million RMB (current provision: 500 thousand RMB) if they are unable to determine the damage suffered by the trademark owner due to infringement, the profit gained by the infringer due to infringement or the trademark license fee.       
C. The infringer is not liable for damages if the trademark owner cannot prove that they utilized such trademark in the past 3 years or they suffered any loss due to infringement.