China IP Law Blog

Overview To tackle the increasing problem of trademark violations in China rapidly expanding e-commerce industry, the State Administration for Market Regulation (SAMR) has introduced draft regulations titled Regulations on E-commerce Platforms’ Assistance in Investigating and Handling Trademark Infringement Cases (Draft Regulations). This initiative supports China wider intellectual property (IP) protection goals outlined in the Outline of the National Intellectual Property Strategy (2021–2035) and directives from the Communist Party of China and State Council on strengthening IP enforcement. The Draft Regulations focus on closing enforcement loopholes, especially concerning ghost online stores — sellers using fake or untraceable information — which have complicated IP protection efforts. For foreign companies operating in or exporting to China, understanding these proposed rules is crucial for protecting trademark rights and navigating the changing regulatory environment. This article analyzes the background, main provisions, and practical effects of the Draft Regulations for international businesses. Background: The Need to

Over the last ten years, China legal framework has made remarkable progress by enhancing IP protections, establishing specialized courts, and raising statutory damage limits. The government stance is clear: IP is a valuable asset, and violations will face penalties. Nonetheless, there often remains a considerable gap between the legal entitlement to prevent others from using your IP and the practical ability to secure financial compensation that accurately reflects the infringement value. Calculating damages is the most complicated and frequently contested part of IP enforcement in China. Even a ruling in favor of infringement can feel hollow if the awarded damages are minimal. This article seeks to clarify the process of determining damages in China through an in-depth, firsthand examination of a recent, illustrative case: JOYCITY Corporation v. Chengdu Lemondo Technology Co., Ltd. and Giant Network Group entities (Case No. (2024) Hu 73 Min Zhong No. 436). Acting as counsel for

China offers unmatched business opportunities for overseas businesses. However, before selling products or promoting services, they must face a critical and growing obstacle: the trademark registration process. Recently, the rejection rate for trademark applications has surged to record highs. By early 2025, China had about 50 million active registered trademarks, with nearly 20,000 new applications submitted daily. The numbers are telling. In 2024, China National Intellectual Property Administration (CNIPA) examined over 6.6 million applications, but the initial approval rate dropped to just under 54%, meaning nearly half of all applications were rejected. This raises an important question for foreign brands: why has obtaining a trademark in China become so difficult? Is it simply due to a lack of originality, or are there deeper, more influential factors? Understanding this reality is essential for developing a successful market entry plan. The Scale Challenge: Operating in a Saturated Market China trademark environment resembles