China’s 2025 Trademark Law (Draft Revision) represents a targeted overhaul of the country’s intellectual property framework, addressing longstanding challenges such as trademark hoarding, abusive enforcement, and the protection of modern brand formats. The draft signals a clear regulatory shift from a rigid “first-to-file” regime toward a model that prioritizes genuine use and brand integrity, while aligning Chinese practice more closely with international standards.
On December 27, 2025, the official website of China’s National People’s Congress (NPC) published the Trademark Law (Draft Revision) (hereinafter “the Draft”) for public consultation. The consultation period lasts for 45 days, ending on February 9, 2026. After the comment period concludes, the NPC Standing Committee will continue its legislative review process. Based on current legislative projections, the new Trademark Law is expected to be adopted as early as the first half of 2026, with the possibility of formal enactment and implementation also occurring within 2026.
This briefing outlines the most consequential amendments and their practical implications for foreign brand owners and IP practitioners.
Key Amendments & Practical Impacts
Introduction of “dynamic signs” as registrable.
Article 14 of the Draft expands the scope of registrable trademark subject matter to expressly include “dynamic signs”, marking their first formal recognition under China’s trademark framework. Upon enactment, this provision will equip technology, gaming, and digital-native brands with more robust mechanisms to secure and enforce their intellectual property rights.
Rejection of applications lacking genuine intent to use.
Article 18 of the Draft establishes a clear refusal ground for applications filed without genuine commercial intent or that substantially exceed normal business needs, directly targeting hoarding and speculative practices. Stakeholders should ground their registration portfolios in demonstrable commercial use, as CNIPA is likely to implement more rigorous examination standards regarding the scale and bona fides of incoming filings should the provision take effect.
Administrative penalties for bad-faith trademark filings.
Article 53 of the Draft provides that individuals and entities that file bad-faith trademark applications causing adverse social impact face administrative penalties, including warnings and fines of up to RMB 100,000. Coupled with Article 18 listed above, this introduces meaningful financial deterrence against abusive filing behaviour. It signals a regulatory shift from purely corrective measures to punitive enforcement, benefiting legitimate market participants.
Civil liability for malicious litigation.
Article 78 of the Draft provides that parties initiating trademark litigation in bad faith face judicial sanctions and civil liability for damages caused to defendants. This provision provides deterrent against trademark trolls and abusive enforcement campaigns.
Expanded cross-class protection for unregistered well-known marks.
Article 20 of the draft removes the longstanding requirement that well-known trademarks must be registered in China to qualify for cross-class protection against dilution or free-riding on dissimilar goods. Unregistered marks that have achieved well-known status may enjoy the same anti-dilution protection previously reserved for registered marks.
This significantly lowers the enforcement barrier for foreign brands with high fame, particularly in fast-moving digital or niche sectors where registration may lag behind market recognition. It is always advisable that brand owners should systematically document sales volume, advertising reach, and industry awards to substantiate well-known status in CNIPA or court proceedings.
Shortened opposition period: from three months to two.
According to Article 35 of the Draft, the opposition window for challenging published trademark applications is compressed from three months to two months. The tighter deadline demands faster trademark monitoring and more agile response mechanisms. More proactive measures, such as upgrading watch services and pre-authorizing opposition budgets, may be considered to ensure local counsel is on standby to avoid missing critical dates.
Proactive administrative cancellation powers and sanctions for misleading use of trademarks.
Based on Article 56 of the Draft, CNIPA is empowered to proactively cancel trademarks that have become generic or remained unused for three consecutive years without legitimate reason. Additionally, using a registered trademark in a manner that misleads the public may result in orders to rectify, fines of up to RMB 50,000, and cancellation of the registration in serious cases.
This reinforces the “use-it-or-lose-it” principle and accelerates the clearance of deadwood from the register. Brand owners should conduct regular portfolio audits to ensure active use. It also requires multinational companies to align their Chinese labelling, advertising, and product documentation with local regulations to avoid administrative sanctions or involuntary loss of trademark rights.
Licensor’s right to terminate the license for licensee’s breach of quality assurance obligations.
Article 55 of the draft explicitly provides that if a licensee fails to fulfil quality assurance obligations, the licensor has the right to terminate the trademark license agreement. This elevates quality control from a contractual preference to a statutory safeguard, lowering the evidentiary threshold for termination.
Conclusion
The 2025 Trademark Law (Draft Revision) reflects China’s decisive move toward a more disciplined, use-driven, and internationally aligned IP regime. While the draft remains pending final legislative approval, the trajectory is clear: enhanced protection for legitimate brand owners, stricter accountability for bad-faith actors, and greater emphasis on commercial reality over speculative registration. Our team will closely track further legislative developments and deliver expert analysis to ensure stakeholders are well-prepared for the upcoming regulatory shifts.
