On August 30, 2013, the legislature of China passed a new trademark law in order to crack down on infringements and provide a fair market for trademark holders. The revised law was passed after three readings over the past two years, at the bimonthly session of the National People’s Congress (NPC) Standing Committee.


According to the revised law, the compensation ceiling for a trademark infringement has been increased to 3 million yuan, which is six times more than the earlier limit. Wang Qing, an official with the Legal Affairs Commission of the NPC Standing Committee said that the revision was based on comments made by lawmakers, experts and representatives of businesses and trademark agencies from both China and abroad.

The new law also mentioned that the trademark agencies are not permitted to accept entrustment if they are aware of or should be aware of the fact that their clients are conducting a malicious registration or are infringing on the trademark rights of others.

Agencies which are found violating the law will have to face fines and a bad credit record which are filed by industrial and commercial authorities. Those people involved in serious cases will have to suspend their businesses. The new law also provides protection for renowned trademarks.

Photo Credits: Want China Times