The Bridge Newsletter（Dec.）新法速递十二月刊

THE BRIDGE

 

Monthly Newsletter of the New Laws and Regulations in China

DECEMBER- 2021  VOL.9

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最高法就修改人身损害赔偿案件适用法律若干问题解释征意 

     Recently, the Supreme People's Court ("SPC") has released the Decision on Revising the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in Hearing Cases of Compensation for Personal Injury (Draft for Comment) (the "Draft for Comment") for public comments by December 10, 2021.

      The Draft for Comment intends to amend the provisions on different compensation standards for urban and rural residents in respect of disability compensation, death compensation, and living expenses for dependents. Among them, the Draft for Comment amends the original Article 15 to read: "The death compensation shall be calculated based on the per capita disposable income of urban residents in the previous year in the place where the court that accepts the case is located, as per 20 years. However, for a person over 60 years old, it shall be reduced one year for each year over 60; for a person over 75 years old, it shall be calculated as per five years." The Draft for Comment also revises Articles 12, 17, 18, 22 and 24.

财政部就国际会计准则理事会附有契约条件的非流动负债征意 

        日前，财政部会计司发布由国际会计准则理事会制定的《附有契约条件的非流动负债（征求意见稿）》（下称《征求意见稿》），面向有关单位征求意见，意见反馈截止于2022年1月10日。

      《征求意见稿》的核心规定为：此类债务不再以主体在报告日是否符合契约条件作为流动性划分的依据，而是根据借款合同约定的测试日期的测试结果来判断负债的流动性，并披露相关信息。《征求意见稿》明确，主体对未来12个月内需要偿付且无法推迟偿付的“由交易对手或第三方酌情决定的负债”等两类负债，应划分为流动负债。

MOF Seeks Comments on IASB's Non-current Liabilities with Covenants 

       The Accounting Department of the Ministry of Finance ("MOF") has recently issued the Non-current Liabilities with Covenants (Exposure Draft) (the "Exposure Draft"), which is formulated by the International Accounting Standards Board ("IASB"), to solicit opinions from relevant entities by January 1, 2022.

        The Exposure Draft mainly specifies that as for the non-current liabilities, whether the covenants are complied with by the entity at the reporting date will no longer be used to classify the liabilities as current or non-current; instead, the classification of liabilities shall be based on the test result on the test day agreed in a loan contract and relevant information is required to be disclosed. The Exposure Draft makes clear that, for liabilities that become repayable within the upcoming 12 months and cannot be deferred, if they fall into two circumstances, including, "at the discretion of the counterparty or a third party", they will be classified as current liabilities.

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海关总署明确《区域全面经济伙伴关系协定》实施事项

近日，海关总署发出2021年第106号公告，明确《区域全面经济伙伴关系协定》实施相关事项，自2022年1月1日起实施。

公告指出，《中华人民共和国海关〈区域全面经济伙伴关系协定〉项下进出口货物原产地管理办法》以及本公告中所述的成员方是指中国、文莱、柬埔寨、老挝、新加坡、泰国、越南、日本、新西兰、澳大利亚等自2022年1月1日起正式实施《区域全面经济伙伴关系协定》（下称《协定》）的国家。公告规定，进口货物收货人或者其代理人、出口货物发货人或者其代理人办理《协定》项下货物海关申报手续的，按照海关总署公告2021年第34号对“尚未实现原产地电子信息交换的优惠贸易协定项下进口货物”的有关要求填制《海关进（出）口货物报关单》，提交原产地单证。《协定》的优惠贸易协定代码为“22”。

The General Administration of Customs ("GAC") has recently issued the Announcement [2021] No. 106, with effect from January 1, 2022, to clarify matters concerning the implementation of the Regional Comprehensive Economic Partnership ("RCEP").

According to the Announcement, the member countries specified in the Administrative Measures of the Customs of the People's Republic of China for the Origin of Imports and Exports under the Regional Comprehensive Economic Partnership and the Announcement shall refer to China, Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, Japan, New Zealand, Australia, and other countries where the RCEP will officially take effect from January 1, 2022. The Announcement specifies that when a consignee of imported goods or its agent, or a consignor of exported goods or its agent handles the customs declaration procedures for goods under the RCEP, it shall complete the Customs Declaration Forms for Imports and Exports of the Customs pursuant to the requirements for "imports under a preferential trade agreement, where the exchange of electronic information on the origin thereof has not yet been achieved", and submit the documents of origin. The code of preferential trade agreement for the RCEP shall be "22".

GAC Clarifies Matters Concerning RCEP Implementation 

日前，国家发展和改革委员会下发《关于建立违背市场准入负面清单案例归集和通报制度的通知》（下称《通知》）。

《通知》规定，纳入违背市场准入负面清单案例通报的，主要包括“地方政府及有关机构违背市场准入负面清单禁止准入类或许可准入类事项要求进行审批的”等几类情况。《通知》要求，对违背市场准入负面清单的典型案例情况进行通报，在国家发改委门户网站和“信用中国”网站向社会公示，同步纳入全国城市信用状况动态监测。《通知》还明确，福建、云南、宁夏等第一批试点地区在现有工作基础上，完善市场准入效能评估指标体系，将案例归集情况作为评估重要内容。将北京、河北、上海、浙江、安徽、广东、重庆纳入第二批试点范围。

Recently, the National Development and Reform Commission ("NDRC") has issued the Circular on Establishing the System for Collection and Notification of Cases Violating the Negative List for Market Access (the "Circular").

According to the Circular, the notification of cases involving the violation of the negative list for market access mainly include situations such as "local governments and relevant agencies grant approval in violation of the requirements for items prohibited for market entry or items requiring approval for market entry in the negative list for market access". The Circular requires notification of those typical cases of violation of the negative list for market access, disclosure of the cases to the public on the official website of the NDRC and the "Credit China", and concurrent inclusion of the cases in the China credit city dynamic monitoring. The Circular also clarifies that the first batch of pilot regions including Fujian, Yunnan, and Ningxia will improve the market access efficiency evaluation indicator system on the basis of existing work, and use case collection as an important part of the evaluation. Beijing, Hebei, Shanghai, Zhejiang, Anhui, Guangdong, and Chongqing will be included in the second batch of pilot regions.

国家发改委：建立违背市场准入负面清单案例归集和通报制度 

NDRC Establishes a System for Collection and Notification of Cases Violating the Negative List for Market Access 

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四部门印发《关于加强减刑、假释案件实质化审理的意见》 

近日，最高人民法院等四部门联合下发《关于加强减刑、假释案件实质化审理的意见》（下称《意见》）。

《意见》共20条，从准确把握实质化审理基本要求、严格审查实体条件、切实强化案件办理程序机制、大力加强监督指导及工作保障等四个方面，进一步细化了减刑、假释案件实质化审理的工作要求。《意见》强调，强化审判组织的职能作用，人民法院审理减刑、假释案件，合议庭成员应当对罪犯是否符合减刑或者假释条件、减刑幅度是否适当、财产性判项是否执行履行等情况，充分发表意见。对于重大、疑难、复杂的减刑、假释案件，合议庭必要时可以提请院长决定提交审判委员会讨论，但提请前应当先经专业法官会议研究。

Recently, four authorities including the Supreme People's Court ("SPC") have jointly issued the Opinions on Strengthening the Substantive Trial of Cases of Commutation and Parole (the "Opinions").

The Opinions, encompassing 20 articles, further refine the requirements for the substantive trial of cases of commutation and parole from four aspects: accurately understanding the basic requirements of substantive trial, strictly reviewing the substantive conditions, effectively strengthening the procedural mechanism for case handling, and vigorously enhancing supervision and guidance as well as support for the work. The Opinions stress the need to strengthen the functions and roles of the trial organization, and that when a people's court hears commutation and parole cases, and the members of the collegiate panel shall fully express their opinions on whether the offender meets the conditions for commutation of sentence or parole, whether the range of commutation is appropriate, and whether the property sentence is enforced or fulfilled. For major, difficult, and complicated cases of commutation and parole, the collegiate panel may, when necessary, request the president of the court to make a decision on submitting such cases to the adjudication committee for discussion, but the study of the cases through a specialized judge meeting is required before submission.

Opinions on Strengthening the Substantive Trial of Cases of Commutation and Parole Issued

近日，国家外汇管理局发布《外汇市场交易行为规范指引》（下称《指引》），自2022年1月1日起实施。

《指引》旨在促进外汇市场诚信、公平、有序、高效运行。其主要内容如下：一是适用于银行间市场和对客户柜台市场。二是规范对象包括外汇市场参与各方，既包括从事外汇交易的机构，也包括中国外汇交易中心、银行间市场清算所股份有限公司、货币经纪公司等。三是重点规范外汇市场交易行为，核心内容是交易管理和信息管理。四是为银行等金融机构对客户在柜台开展的外汇交易设置1年的过渡期。

Recently, the State Administration of Foreign Exchange ("SAFE") has issued the Guidelines on the Code of Conduct for Transactions in the Foreign Exchange Market (the "Guidelines"), with effect on January 1, 2022.

The Guidelines aim to promote the honest, fair, orderly and efficient operation of the foreign exchange (FX) market. The Guidelines include the main content as follows: the provisions of the Guidelines (1) are applicable to the inter-bank market and the over-the-counter (OTC) market; (2) regulate all parties involved in the FX market, including not only institutions engaged in FX transactions, but also the China Foreign Exchange Trading Center ("CFETC"), Shanghai Clearing House, and currency brokerage companies; (3) place focus on regulating the FX market transaction conduct, centering on transaction management and information management; and (4) set a one-year transitional period for banks and other financial institutions to conduct FX OTC transactions with customers.

国家外汇局印发《外汇市场交易行为规范指引》 

SAFE Issues the Guidelines on the Code of Conduct for Transactions in the Foreign Exchange Market 

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国务院税委会：给予最不发达国家98%税目产品零关税待遇

日前，国务院关税税则委员会发布《关于给予最不发达国家98%税目产品零关税待遇的公告》（下称《公告》）。

《公告》称，按照我国给予最不发达国家部分产品零关税待遇的有关承诺，扩大与我国建交的最不发达国家输华零关税待遇的产品范围，对原产于最不发达国家98%的税目产品，适用税率为零的特惠税率。适用国家和实施时间根据我与相关国家的换文进展，由国务院税委会另行公布。根据《公告》所附《98%税目产品特惠税率表》，共计涵盖“改良种用马”等8930个商品名称。此前，我国已给予安哥拉共和国等42国97%税目产品零关税待遇，给予东帝汶民主共和国、缅甸联邦共和国95%税目产品零关税待遇。

State Council Grants Zero-tariff Treatment to 98% of Taxable Products from LDCs 

       Recently, the Customs Tariff Commission of the State Council has issued the Announcement on Granting Zero-tariff Treatment to 98% of Taxable Products from Least Developed Countries (the "Announcement").

  The Announcement states that, in accordance with China's commitment to grant zero-tariff treatment to some products of least developed countries (LDCs), the scope of products exported to China with zero-tariff treatment from LDCs with which China have established diplomatic relations will be expanded, and a preferential tax rate of zero will apply to 98% of taxable products originating from LDCs. The applicable countries and implementation schedule depend on the progress of the exchange of letters between China and the relevant countries and will be announced separately by the Customs Tariff Commission of the State Council in accordance with. According to the Preferential Tax Rate Table of 98% of Taxable Products attached to the Announcement, a total of 8,930 commodity names such as "Improved Breeding Horses" are covered. China previously has granted zero-tariff treatment to 97% of taxable products from 42 countries including the Republic of Angola, and zero-tariff treatment to 95% of taxable products from the Democratic Republic of East Timor and the Republic of the Union of Myanmar.

国知局出台《商标一般违法判断标准》

近日，国家知识产权局发布《商标一般违法判断标准》（下称《标准》），自2022年1月1日起施行。

《标准》系统梳理和提炼总结商标管理的有益经验与做法，聚焦执法实践中普遍存在的突出问题，为商标执法部门提供针对性较强的指引，为市场主体营造透明度高、可预见性强的商标管理规则。《标准》共三十五条，对现行商标法律、法规及部门规章规定的必须使用注册商标而未使用，使用不得作为商标使用的标志，在商业活动中使用“驰名商标”字样，商标被许可人未依法标明其名称和商品产地，自行改变注册商标、注册人名义、地址或者其他注册事项，将未注册商标冒充注册商标使用，未履行集体商标、证明商标管理义务，未履行商标印制管理义务，恶意申请商标注册等九类违反商标管理秩序的违法行为进行了细化规定。

CNIPA Issues Judgment Standards for General Trademark Violations 

      The China National Intellectual Property Administration ("CNIPA") has recently issued the Judgment Standards for General Trademark Violations (the "Standards") for implementation from January 1, 2022.

   The Standards systematically sort out and summarize good experiences and practices in trademark management, focus on the prominent issues that generally exist in the course of law enforcement, provide targeted guidelines for trademark law enforcement authorities, and offer market entities with the trademark management rules with high transparency and foreseeability. Consisting of 35 articles, the Standards set forth detailed provisions on nine types of illegal behaviors that disrupt the order of trademark management as identified in the existing laws, regulations and departmental rules, namely, failure to use a registered trademark when it must be used, use of any mark that cannot be used as trademark, use of the words "well-known trademark" in a commercial activity, trademark licensee's failure to indicate its name and the origin of goods as required by law, change of the registered trademark, registrant's name, and address or other registration items without permission, use of an unregistered trademark as a registered one, failure to perform management obligations in collective trademark and certification trademark and trademark printing management obligations, and malicious application for trademark registration.

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国家发改委：建立违背市场准入负面清单案例归集和通报制度 

    Recently, the China National Intellectual Property Administration ("CNIPA") has issued the Guide on Trademark Examination and Adjudication (the "Guide"), with effect on January 1, 2022.

   The Guide consists of two parts, respectively regulating the formality examination and trademark affairs as well as trademark examination and adjudication. Among them, the part "trademark examination and adjudication" includes the examination and adjudication of: (a) malicious trademark registration applications that are not intended for use, (b) marks that cannot be used as trademarks, (c) distinctive features of trademarks, (d) identical and similar trademarks, and (e) three-dimensional mark trademarks. With the "examination and adjudication of malicious trademark registration applications that are not intended for use" as an example, the Guide lists the legal basis, interpretation, applicable elements, consideration factors, applicable scenarios, typical cases, etc., with a view to ensuring the uniform application of laws and implementation of unform standards in the whole process of trademark examination and adjudication.

海关总署明确进口食品境外生产企业注册管理规定等实施事宜 

近日，海关总署发出2021年第103号公告，对《中华人民共和国进口食品境外生产企业注册管理规定》和《中华人民共和国进出口食品安全管理办法》实施相关事宜作出规定。

公告明确了境外生产企业注册申请及企业信息查询、境外生产企业注册涉及产品类别及商品编号查询、境外生产企业注册办事指南等七个问题。其中，根据公告，2022年1月1日起启运的输华食品，在进口申报时应在报关单“产品资质”项下“进口食品境外生产企业注册”证书栏（许可证类别代码519）规范填写该企业在华注册编号。在实施2020版申报项目的海关申报进口食品，应在“其他企业”项下的“其他企业类别”栏选择“进口食品境外生产企业”，在“编号或企业名称”栏填报该企业在华注册编号。

GAC Clarifies Matters on Implementation of Administrative Provisions on Registration of Overseas Manufacturers of Imported Food 

      Recently, the General Administration of Customs ("GAC") has issued the Announcement [2021] No. 103, stipulating matters concerning the implementation of the Administrative Provisions of the People's Republic of China on Registration of Overseas Manufacturers of Imported Food and the Administrative Measures of the People's Republic of China for the Safety of Imported and Exported Food.

     The announcement has clarified seven issues, including the registration application of overseas manufactures and the enterprise information inquiry, the inquiry of product categories and HS codes involved in the registration of overseas manufactures, and the guidelines for the registration of overseas manufactures. Among them, according to the announcement, for the food exported to China and shipped from January 1, 2022, the overseas manufacture shall fill in its registration no. in China into the certificate column "Registration of Imported Food Overseas Manufacture" (license category code 519) under the "Product Qualification" Item of the customs declaration form. When declaring imported food with customs authority that implements the 2020 declaration projects, manufacturers shall select the "Imported Food Overseas Manufacture" in the column "Other Enterprise Category" under "Other Enterprise" item, and fill in its registration no. in China into the column "Number or Enterprise Name".

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The Customs Tariff Commission ("CTC") of the State Council has recently issued the Circular on the 2022 Tariff Adjustment Plan (the "Circular").

According to the Circular, starting from January 1, 2022, China will implement provisional tariff rates lower than the most-favored-nation tariff rates on 954 commodities. The adjustments proposed in the Circular are mainly based on the following considerations: (1) implementing zero tariffs on radium chloride injection, the new anti-cancer drug, to reduce the economic burden of the patients; (2) reducing import tariffs on some consumer goods, including some high-quality aquatic products such as salmon, to meet the people's needs for a better life, and create a sound atmosphere for the Beijing Winter Olympics; (3) implementing zero tariffs on oil paintings and other artworks that have been produced for more than 100 years, to meet the needs of cultural consumption; (4) reducing import tariffs on gasoline particular filters that can improve vehicle fuel efficiency and reduce exhaust emissions to raise environmental quality; (5) reducing import tariffs on key components such as high-purity graphite accessories to help optimize and upgrade the manufacturing industry; (6) reducing the import tariffs on resource products that are in short supply domestically, such as pyrite and pure potassium chloride.

国务院税委会公布2022年关税调整方案 

       近日，国务院关税税则委员会发出《关于2022年关税调整方案的通知》（下称《通知》）。

       根据《通知》，自2022年1月1日起，我国将对954项商品实施低于最惠国税率的进口暂定税率。此次调整主要基于以下考虑：一是为减轻患者经济负担，对新型抗癌药氯化镭注射液实施零关税等。二是为满足人民美好生活需要，营造浓厚北京冬奥会氛围，降低部分消费品的进口关税，包括鲑鱼等优质水产品等。三是适应文化消费需求，对超过100年的油画等艺术品实施零关税。四是为改善环境质量，对可提高车辆燃油效率、减少尾气排放的汽油机颗粒捕集器等，降低进口关税。五是助力制造业优化升级，降低高纯石墨配件等关键零部件的进口关税等。六是降低国内短缺的黄铁矿、纯氯化钾等资源产品的进口关税。

CTC of the State Council Announces 2022 Tariff Adjustment Plan 

银保监会明确保险中介市场对外开放有关措施

CBIRC Clarifies Matters Concerning the Opening-up of Insurance Intermediary Market 

       日前，中国银行保险监督管理委员会办公厅印发《关于明确保险中介市场对外开放有关措施的通知》（下称《通知》）。

     《通知》共三条：第一条大幅取消外资保险经纪公司的准入限制，不再要求股东经营年限、总资产等条件；第二条进一步降低外资保险中介机构的准入门槛，允许外国保险集团公司、境内外资保险集团公司投资设立的保险中介机构经营相关保险中介业务；第三条是保险中介机构按照“放管服”改革要求、适用“先照后证”政策的相关规定。下一步，银保监会将持续稳妥推进银行业保险业对外开放，完善监管规则，改善营商环境，构建新型保险中介市场体系，提高我国保险中介市场服务水平，更好服务于国民经济和社会发展。

     The General Office of the China Banking and Insurance Regulatory Commission ("CBIRC") has recently distributed the Circular on Clarifying Relevant Measures for the Opening-up of Insurance Intermediary Market (the "Circular").

         The Circular consists of three articles: Article 1 significantly lifting the restrictions on market access for foreign-invested insurance brokerage companies, removing such conditions as operation lengths of shareholders and the total asset. Article 2 further lowers the threshold for entry of foreign-invested insurance intermediaries, allowing the insurance intermediaries established by foreign insurance group companies and foreign-invested insurance group companies in China to carry out relevant insurance intermediary businesses. Article 3 requires insurance intermediaries to comply with the requirements for the reform of "streamlining administration, delegating power and strengthening regulation and improving services" and to follow the relevant policies for the Reform of "License First, Certificate Second". In its next step, the CBIRC will steadily advance the opening up of the banking and insurance industry, improve regulatory rules, optimize the business environment, build a new insurance intermediary market system, improve the service level of China's insurance intermediary market, and better serve the national economy and social development.

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Recently, the China Securities Regulatory Commission ("CSRC") has drawn up the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comment) (the "Draft") and the Administrative Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comment), both are now open for public comments, and the cut-off date for receiving comments is January 23, 2022.

The Draft, encompassing 28 articles in five chapters, has four highlights as follows: the first is to improve the regulatory system and implement a uniform filing management for domestic companies' direct and indirect overseas listings. The second is to strengthen regulatory coordination, establish a regulatory coordination mechanism for overseas listing of domestic companies, and strengthen regulatory coordination. The third is to clarify the legal liability for violations of laws and regulations such as failure to undergo the filing procedures and falsification of filing materials, to increase the cost of violations. The fourth is to enhance the inclusiveness of the system, and allow domestic companies directly issuing securities and list overseas to offer securities to specific domestic entities on the satisfaction of conditions such as implementing equity incentives, which is laid out by considering the practice of expanding the opening up of the capital market and supporting the needs of business development.

证监会就境外上市相关制度规则公开征求意见 

日前，中国证券监督管理委员会起草了《国务院关于境内企业境外发行证券和上市的管理规定(草案征求意见稿)》（下称《征求意见稿》）和《境内企业境外发行证券和上市备案管理办法(征求意见稿)》,一并向社会征求意见，意见反馈截至2022年1月23日。                                《征求意见稿》共五章二十八条,主要内容包括:一是完善监管制度，对境内企业直接和间接境外上市活动统一实施备案管理。二是加强监管协同，建立境内企业境外上市监管协调机制,强化监管协同。三是明确法律责任，明确未履行备案程序、备案材料造假等违法违规行为的法律责任,提高违法违规成本。四是增强制度包容性，结合资本市场扩大开放实践和支持企业发展需要,明确在股权激励等情形下,境外直接发行上市可向境内特定主体发行。

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CSRC Seeks Public Comments on the System and Rules for Overseas Listing 

五部门：境外组织或个人不得在境内从事互联网宗教信息服务 

Five Authorities to Ban Overseas Organizations and Individuals from Running Internet Religious Information Services in China 

近日，国家宗教事务局等五部门发布《互联网宗教信息服务管理办法》（下称《办法》），自2022年3月1日起施行。

《办法》明确，从事互联网宗教信息服务，应当向所在地省级人民政府宗教事务部门提出申请，并对许可条件、申请材料、使用名称、受理时限等作了规定。《办法》要求，网上讲经讲道应当由取得《互联网宗教信息服务许可证》的宗教团体、宗教院校和寺观教堂组织开展。《办法》规定，除《办法》第十五条、第十六条规定的情形外，任何组织或者个人不得在互联网上传教，不得开展宗教教育培训、发布讲经讲道内容或者转发、链接相关内容，不得在互联网上组织开展宗教活动，不得直播或者录播宗教仪式。《办法》还明确，任何组织或者个人不得在互联网上以宗教名义开展募捐。

     The National Religious Affairs Administration and four other authorities have recently issued the Administrative Measures for Internet Religious Information Services (the "Measures") for implementation from March 1, 2022.

      The Measures specify that, to carry out any internet religious information service, an application shall be made to the religious affairs administration of the provincial people's government at the business location; permission condition, application materials, use of name, time limit for acceptance, and other matters are also clarified. The Measures require that online preaching can only be organized and carried out by religious groups, religious schools, temples and churches that have obtained the license for internet religious information services. According to Measures, except as stipulated in Articles 15 and 16 of the Measures, no organization or individual may preach any religion on the internet, carry out any religious education or training, publish any preaching content, repost or set up link to any relevant content, organize or carry out any online religious activity, or livestream or play the recording of any religious ritual. Furthermore, the Measures prohibit any organization or individual from carrying out any fundraising on the internet in the name of religion.

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THE BRIDGE NEWSLETTER

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THE BRIDGE NEWSLETTER

Monthly Article

However, when Monster tried to enter the Chinese market, with a trademark squatter. The Chinese version of their trademark “Monster” had already been registered by a Shanghai-based company who produced drinks with similar look and formulation to Monster Beverage.

This is a common phenomenon, in China, that many people or companies will try to register some famous oversea brands before they enter the Chinese market. Trademark squatters attempt to take advantage genuine well-known brands in the Chinese market. This derives a special act of trademark registration, which is so-called “malicious registration.”

For most practical purposes, China is a “first-to-register” jurisdiction in regards to trademarks. Some famous foreign brands cannot be registered because of the existence of the prior “zombie trademarks.” Malicious mark holders then sue famous brands for infringement, to taking advantage of well-known brands.

According to the trademark law in China, there are two different ways to deal with this problem.

Firstly, if the prior trademark has already been registered for more than 3 years, a brand can try to use the Article 49 of the Trademark Law to protect their rights. According to the Article 49, where a registered trademark becomes a generic name of the commodities for which it is approved or a registered trademark has not been used for three years consecutively without a proper reason, any organization or individual may apply to the Trademark Bureau for revocation of the said registered trademark.

During this procedure, the owner of a trademark is required to provide evidence of use of the trademark in a period of three years to the Trademark Office to avoid the cancellation. That is to say the owner of the prior trademark must submit evidence to show that it has use the trademark effectively or it has good causes under the law which makes them unable to use it. Otherwise, the trademark will be cancelled.

Furthermore, in the past practice of trademark examination and administrative adjudication on affirmation of trademark rights, adjudicators have paid more attention to whether trademark rights are actually used by trademark holders. However, in the increasingly severe situation of preemptive registration of trademarks, some trademark holders need to prove both actual use and effective use.

The Malicious Registration “Monster”

Preemptive Registration

Secondly, if the trademark has been registered for less than 3 years, you can only use article 44 of the Trademark Law. This article is the closest thing to "preemptive registration" under the existing legal framework. Because in Article 44, "by deception or other improper means" can be interpreted to include common circumstances of malicious preemptive registration, and the application requirements of such Article 44 do not require similar goods or services or prior use of the citation mark or even well-known trademark.

Rita Huang    Peter Fenton

Conclusion

In 2016, the Beijing Higher People's Court ruled in an appeal case involving review of objections to trademark between Liu Hongqun and Facebook Co, holding that the "facebook." Liu Hongqun apply to use the mark for commodities under Class 32 "juice beverages, ice, vegetable juice". The legal basis that the case relies upon was Trademark Law Article 44 and the mark was not granted.

Ultimately, Monster failed in its attempt to revoke the malicious trademark and took the commercial decision to buy out the mark holder.

In many cases involving malicious preemptive registration, it is difficult to prevent the trademark from being registered (as the dissenter/withdrawing person has too much burden of proof); unless:

Therefore, the best preventative steps, still requires prior registration in China and maintaining vigilance over valuable intellectual property. It is essential for foreign brands to actively search the trademark register and take steps to register their brand first. It is essential to obtain professional advice and searches to ensure brand protection and avoid malicious registration in the first instance. Though remedies are available to prevent malicious registration, these are costly, time consuming and have risks that they burden of proof can not be discharged. 

广东金桥百信律师事务所

Guangdong Kingbridge Law Firm

      广东金桥百信律师事务所创设于1995年，是中国最早期合伙制律事所之一。经过多年耕耘和积累，在2016年完成特殊普通合伙改制，成为拥有执业律师近400百人、22个专业部门齐全、在佛山、中山、江门、长沙、三亚、粤港澳大湾区及华南区域设有分所的大规模、综合化律师事务所。

       金桥百信律所的宗旨是提供明确、简明、及时的实用建议，支持客户业务目标的可交付的法律成果。创新务实的解决方案，以满足客户的业务需求。专业的法律服务团队深度融合法律和商业实践，为客户提供高价值的专业法律服务。

        Guangdong Kingbridge Law Firm, established in 1995, is one of the earlist partnership law firms in China, Kingbridge has been transformed to the special limited partnership law firm in 2016. The firm has a team consisting of 400 professionals lawyers who are result driven. with Foshan, Zhongshan, Jiangmen, Changsha, Sanya branch offices and 22 professional sectors in Guangdong-Hong Kong-Macao Greater Bay Area and South China, Kingbridge has become the full service law firm.

        The aim of the Kingbridge firm is to provide clear, concise and practical advice with time bound deliverables to support its clients' business objectives. Its innovative and pragmatic solutions extend beyond practices and borders to suit clients' business needs. The team of professionals understand issues across a broad spectrum of business and legal practices. This fluency allows the firm to bring the right talent and knowledge to deliver commercially pragmatic advice.

涉外法律部

International Legal Sector 

       金桥百信涉外法律部由专业的涉外律师团队组成（中国司法部公布的涉外律师人才，广东省涉外律师人才），有丰富的涉外法律服务经验，尤其在跨境投资（对境外投资以及外商来华投资）、跨境并购、国际商事争议解决机制 (国际诉讼和国际商事仲裁)等方面有着丰富的法律服务经验，对“一带一路”沿线国家和大湾区的法律环境熟悉，高效为全球化、多语种、多类型的客户提供有效便捷的法律服务。

        涉外法律部的律师大多毕业于国内外法律名校，经过多年的耕耘和精炼，积累了丰富的经验和熟练的技能。已经先后为来自超过35个国家的客户提供专业法律服务，并且与国外50多家律所建立了长期的合作关系。金桥百信的专业律师团队提供有效、及时和切实可行的解决方案, 这也正是众多客户选择金桥百信的原因。

         金桥百信涉外部将通过国际化的专业团队，为您提供优质的法律服务。

       The International legal sector is consisted of excellent foreign Elite lawyers（The listed foreign Elite Lawyers of Ministry of Justice of China, Guangdong International Leading Elite Lawyer), with skilled experience especially in the cross-border investment. 

      Especially most lawyers of International legal service sector are graduated from the famous university in domestic or abroad, and the professional team already served the foreign clients from more than 35 countries, and also our law firm already establish the close legal cooperation with more than 50 law firms in the world, The firm’s expertise coupled with effective, timely and practical legal solutions are the factors which are predominant in choosing the firm by the clients.

     Our international sector will provide high quality service for you through our international team of professionals with different backgrounds and educations.

CONTACT US

立足粤港澳大湾区

Email: Lawyerxugz@163.com 

Wechat:13760676956

Whatsapp:+8613760676956

地址：广州市天河区珠江新城珠江东路16号高德置地G座24楼和25楼

Add：24F and 25F, Tower G, GT Land, No.16 Zhujiang East Road,  Zhujiang New Town, Tianhe District, 

Post Code：510600