Why the 2019 Amendments Matter

On November 1, 2019, China's revised Trademark Law took effect, representing the most significant overhaul in years. The amendments specifically target bad faith trademark filings — a long-standing headache for foreign brands — while strengthening enforcement mechanisms and increasing damages.

Key Change 1: Bad Faith Filings (Article 4)

The most impactful amendment: trademark applications filed in bad faith and without intent to use may now be rejected at the examination stage. Previously, bad faith was primarily addressed through opposition or invalidation proceedings, which could take years. Now, CNIPA examiners can reject such applications proactively.

CNIPA has since issued guidelines defining bad faith indicators: filing large numbers of marks beyond reasonable business needs, copying well-known marks, and patterns of trademark squatting.

Key Change 2: Higher Statutory Damages

Statutory damages for trademark infringement increased from a maximum of RMB 3 million to RMB 5 million (approximately USD 700,000). Courts are also empowered to impose punitive damages of 1-5 times the actual damages for intentional infringement with serious circumstances.

Key Change 3: Enhanced Destruction Powers

Courts may now order the destruction of counterfeit goods, materials, and tools used primarily for manufacturing counterfeits — not just at the infringer's request, but at the rights holder's request. Previously, destruction remedies were inconsistently applied.

Key Change 4: Tighter Agency Rules

Trademark agencies that knowingly facilitate bad faith filings face administrative penalties, including fines, suspension, or revocation of their license. This puts pressure on agencies to screen clients and refuse suspicious filings.

Impact on Foreign Applicants

• Faster bad faith attack defense: If a squatter files your mark, it may be rejected outright rather than requiring lengthy opposition.
• Stronger deterrent: Higher damages and punitive awards make infringement more costly and less attractive.
• Cleaner register: As bad faith marks are purged, the register becomes less cluttered, reducing citation risks for legitimate applications.

Ongoing Implementation

Since 2019, CNIPA has rejected over 200,000 bad faith applications. The crackdown continues, with increasingly sophisticated screening algorithms. For legitimate foreign applicants, the landscape has never been better — but thorough pre-filing searches remain essential.