April 14 2021
Trademark squatting is a perennial headache for existing foreign companies and those trying to enter the Chinese market. In China, squatters may not just be local competitors but also syndicates operating as a giant profit-making machine, and they are upping their game as the Chinese government and brand owners have both increased their efforts in defending legitimate trademark rights.
While tackling trademark squatters may seem daunting, a well-devised strategy would go a long way in acting in both offence and defense against bad faith trademark squatting in China. In this article, recent trends in curbing bad faith filings are explored and practical tips on combatting squatters are considered.
False advertising, unlicensed workers and non-refundable advance payments are rife. Digital economy accounts for growing share of GDP but the law has not been updated at the same pace. SCMP
Ma Yuting has been in a tussle with an education company for three months. She prepaid more than 15,000 yuan (US$2,300 or RM9,462) in 2019 for her then eight-year-old daughter to have 360 sessions online to practise English with teachers in the Philippines. But at the end of last year, with half of the classes still to come, the company’s Beijing office was shut down and its service hotline disconnected.
“I contacted the salesperson,” Ma said. “At the beginning, she explained that the business was hit by Covid-19, with many teachers in the Philippines unable to work in lockdown, and asked me to be patient. Then later calls went unanswered.
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