Many businesses assume that if they have no intention of selling or manufacturing in China, they don’t need to worry about trademark protection there. That’s a costly mistake. China’s first-to-file trademark system, combined with a thriving counterfeit market, means that failing to secure your brand early can lead to serious challenges. Whether it’s fake products flooding global markets or discovering that someone else has legally claimed your brand in China, the risks are too great to ignore.
Protecting Your Brand from Counterfeiters
1. Register Your Trademark in China—Even If You Don’t Sell There
China operates on a first-to-file system, meaning the first entity to register a trademark owns the rights to it—regardless of whether they are the legitimate owner. If your product is one that can be manufactured in China (which applies to most consumer goods), securing your trademark early is essential. Without registration, counterfeiters can legally produce and sell knockoff versions of your brand, making it difficult and expensive to regain control. Worse, these unauthorized products can enter not just the Chinese market but also international markets where you do business.
2. Protect Service-Based Trademarks Too
It’s not just physical goods that are at risk—your brand’s reputation can also suffer from service-based infringement. Imagine a restaurant chain discovering its name being used in low-quality dining establishments in China or a tech company finding its brand linked to unreliable software. These types of misuses can damage credibility worldwide, especially in today’s era of global travel and digital connectivity. Registering service marks in China helps mitigate this risk and protects your brand’s integrity.
3. Strengthen Your Global Defenses
While counterfeits often originate in China, they frequently spread to international markets. Ensuring that your trademarks are registered in key countries where you operate provides an added layer of security. Additionally, recording your trademarks with customs agencies, such as U.S. Customs and Border Protection (CBP), can help authorities seize counterfeit goods before they reach consumers.
A proactive trademark strategy in China is a crucial step in protecting your brand on a global scale. Even if you have no immediate plans to enter the Chinese market, securing your China trademark ensures that your brand remains under your control. Should you ever decide to expand into China, you’ll already have the legal protections necessary to operate under your own name. Investing in trademark protection now can save your business from significant financial and reputational harm in the future.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.