We have recently participated in multiple trademark non-use cancellation cases for foreign companies. We highly advise trademark owners in China to conduct regular audits of their portfolios to identify which trademarks may be vulnerable to non-use cancellation challenges and to develop strategies to mitigate this risk. 

As of the end of 2023, China has a congested trademark register with 46.1 million active trademark registrations, nearly half of which were rejected by the CNIPA. This surge in applications and the high refusal rate highlight the significant risk of non-use cancellation actions for trademark registrants. 

Since 2022, both the Trademark Office and the Courts have generally been reluctant to accept co-existence agreements and letters of consent. This shift in policy leaves applicants with no choice but to either remove or acquire conflicting prior registrations. Initiating a non-use cancellation to eliminate earlier conflicting marks is a simpler and more cost-effective option compared to opposition and invalidation proceedings. 

Chinese trademark practice places considerable importance on official documents, such as stamped invoices, and the completeness of the evidence chain. Merely providing product images, labels, brochures, and leaflets is insufficient to defend against non-use cancellation challenges. Therefore, it is crucial for entities holding Chinese Trademark Registrations to establish an internal system for archiving evidence of trademark use and to maintain thorough records of this evidence.