China’s National People’s Congress (NPC) Standing Committee has approved a comprehensive revision of the country’s Trademark Law aimed at fostering innovation and ensuring fair competition in the market. The updated legislation, consisting of 87 articles across nine chapters, was adopted on June 26 and will take effect on January 1, 2027.

The amendments respond to growing concerns over malicious trademark registrations and related abuses that strain public resources and disrupt market order. The NPC Standing Committee’s Legislative Affairs Commission highlighted problems including repeated bad-faith filings, trademark hoarding, unauthorized use, imitation, and infringement of existing rights. The commission also cited inadequate penalties, excessive enforcement actions by trademark holders, and disorder among trademark agencies as issues necessitating reform.

To curb these problems, the revised law introduces stricter regulations on trademark registration practices. It explicitly prohibits applications submitted without genuine intent to use the mark or those exceeding normal business scope. Entities found registering trademarks in bad faith causing adverse effects will face warnings and fines up to 100,000 yuan (about $14,710).

The law expands protections against deceptive or misleading trademarks that could misrepresent product quality, craftsmanship, raw materials, or origin. Applicants knowingly submitting such trademarks will be subject to legal liability. Registered trademarks used misleadingly may prompt corrective orders from authorities, with fines reaching up to five times the illegal turnover for amounts exceeding 50,000 yuan, or up to 250,000 yuan for lower turnovers.

Failure to comply with corrective measures within specified deadlines may result in revocation of the trademark. Additionally, the law addresses longstanding issues of trademark non-use by clarifying that registrations left unused without proper justification for three consecutive years are subject to cancellation.

Recognizing digital and technological advances, the revision accommodates the registration of new types of trademarks linked to emerging industries and the mobile internet economy. At the same time, it increases regulatory oversight, including requirements for trademark agencies to register both their organization and employee details with the State Council’s trademark authority.

The revised Trademark Law is positioned as a key step toward implementing China’s strategy to build an intellectual property powerhouse and promote high-quality development within its socialist market economy. By tightening registration standards and toughening enforcement, the country aims to enhance protection for genuine trademarks, deter bad-faith practices, and strengthen fair competition nationwide.