Trademark cancellation in China is no longer so easy

The initiative to enact this Article 49 was to prevent trademark hoarding and encourage the active use of each registered trademark by registrants. However, the misuse of this cancellation right by some applicants has led to malicious cancellation, mainly due to (i) the low cost of filing a trademark cancellation application and (ii) the lower burden of proof for the applicant when initiating cancellation proceedings. In particular, the Malicious cancellation has gained popularity in recent years with the evolution of the model OEM in China, under which many foreign companies only manufacture their products in China, while sales and promotion activities are carried out entirely outside of China, making it virtually impossible for them to provide sufficient evidence of use when faced with a trademark cancellation procedure, even if their trademark is duly registered in China.

In February 2025, the CNIPA introduced a series of significant changes to combat malicious cancellations by increasing the burden of proof on applicants, specifying and quantifying the scope of the evidence submitted. These new rules are ending the era of "simple cancellation," where applicants are only required to submit screenshots of the web pages searching for the trademark applied for. They will now open the new chapter of "strict cancellation," where applicants must submit the following preliminary evidence to initiate a cancellation procedure:

A. The registrant's basic information, including the registrant's business scope, business status, and registered trademark information.

B. An investigation report, supported by evidence, that specifies:

The trademark owner's commercial activity (sale of goods or provision of services) related to the trademark, and the location of its business establishment (for example, photographs of said establishment); and

Brand search results on at least three (3) online platforms (e.g., Baidu, Taobao, JD.com), each of which must occupy at least the first five (5) pages of search results.

The new rules mentioned above, on the one hand, seek to effectively reduce malicious acts in trademark cancellations and, on the other, require greater dedication of time and effort, as well as greater participation of professionals in the "due diligence"of the holder's background, the collection and analysis of evidence, the design of defense strategies, etc.

However, increasing the applicant's burden of proof when initiating trademark cancellation proceedings does not necessarily imply a reduction in the burden of proof for the owner when defending themselves in said proceedings.

In short, for effectively protect a trademark and prevent its cancellation, all activity related to its use must be properly documented (contract, invoice, newsletter, etc.) and well maintained (continuous display on the company's website, social media, online store, etc.) and, if necessary, hire professionals to obtain the appropriate advice and solutions to initiate or defend a trademark cancellation procedure.

Chloe Huang

Senior Legal Advisor Net Craman Asian Desk