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Q&A on Top Issues of Guidelines for Trademark Examination and Trial

Q: What is the difference between "malicious trademark registration for non-use purpose" and malicious registration behaviors such as "free-ride on famous brands or hot spots"? How to judge on "non-use purpose" and "malice"?

A: There is no definition of "malice" in the legal provisions of China's Trademark Law, and the relevant provisions on combating malicious trademark registration are scattered in Articles 4, 7, 15, 19, 32 and 44 of the Trademark Law. It is generally believed that the malicious registration of trademarks can be roughly divided into two types according to the infringed interests: one is the malicious squatting of trademarks, that is, the trademark registration application with the core characteristics of damaging or clinging to the goodwill, civil rights and legitimate rights and interests of others, such as "famous brands", "hot spots" and free-riding the names of public figures; the other is "malicious trademark registration application for non-use purpose", that is, "batch application", "occupation of resources" and other trademark registration application behaviors with the core characteristics of disturbing or impacting the order of trademark registration and management.

The two types of malicious trademark registration are somewhat related. "Malice" in "malicious trademark registration application for non-use purpose" refers to the intention of applying for a large number of trademarks for non-use purpose and making profits, which is different from "malice" in "malicious squatting". Where malicious squatting of trademarks, such as "free-ride of famous brands and hot spots", only damages the civil interests of specific subjects and does not harm the public interests, it should be regulated by the relative reason clause, which does not belong to the regulation situation of "malicious trademark registration application for non-use purpose". Of course, if the number of malicious squatting trademarks is large, the trademark resources are improperly occupied, and the order of trademark registration is disturbed, the first paragraph of Article 4 of the Trademark Law should be applied to regulate it at the same time.

The so-called "for non-use purpose" of applying for trademark registration means that when the applicant applies for trademark registration, he has neither the purpose of actually using the trademark nor the act of preparing to use the trademark, or according to reasonable inference, there is no possibility of actually using the trademark. The legislative purpose of Article 4 of Trademark Law is to curb malicious application behaviors such as improper occupation of trademark resources and trademark hoarding that disturb the order of trademark registration. The intention of applying for a large number of trademarks for non-use purpose and making profits would subject to the "malice" as regulated by this clause.