Research on Legal Regulation of Bad-faith Trademark Registration of China

Against the backdrop of the continuous growth in the number of trademark registrations in China, the phenomenon of bad-faith trademark registration occurs frequently, which not only damages the interests of prior right holders but also disrupts the trademark registration order. Through a review of the relevant laws and regulations governing bad-faith trademark registration, it is found that there are still problems such as inconsistent determination standards, insufficient review of use obligations, and imperfect legal liabilities. Combining international experience with China's reality, the following suggestions are specifically proposed: First, unify the determination standard of “bad faith,” requiring the actor subjectively to have the subjective awareness of “knowing or should have known” and the subjective intent to seek improper benefits, corroborated by objective acts. Second, strengthen the review of trademark use obligations. Introduce a “intent to use” declaration system at the registration stage, and clearly prohibit the transfer of trademarks that have not been actually used at the trademark assignment stage. Third, improve the legal liability for bad-faith trademark registration. At the level of administrative liability, increase the types of administrative penalties and establish a “blacklist” system for suspects of bad-faith trademark registration. In terms of civil compensation liability, expand the scope of compensation to include indirect losses caused. And establish a punitive damages system to severely combat on bad-faith trademark registration acts. It is hoped that these suggestions can provide some ideas for the revision of China's Trademark Law in the fifth round, promote the orderly development of the trademark registration order, and escort the high-quality development of the market economy.