Registering your trademark is a crucial first step when you are looking to do business in China. Unlike Australia, China operates a “first to file” system of trademark registration, which means whoever files the registration first gets protection to use it, regardless of which company used it first or owns it in another country.

A number of high profile global players have already fallen foul of this pitfall because they didn’t register their trademark fast enough. And you have to get in quick. The Chinese Trademark Office receives 20,000 applications per day. Many of these applications are made by “professional trademark squatters” – companies or individuals who register thousands of trademarks a year in the hope one day it can charge huge sums to a famous or successful brand wanting to market their existing product in China.

To avoid these hefty bills, brand owners now file as many trademarks as possible for genuine use and defence against the squatters as well.  All of this makes the trademark options even more limited because so many are already taken. It is no surprise that in 2018, 51.35% of the new trademark filings were refused. And once an application is refused, you are facing a complicated appeal process which takes even more time and money.

So how does this affect Victorian businesses? It is a prominent issue for any business looking to enter the Chinese market, but you shouldn’t assume you have to navigate the application process alone.

The Victorian Chamber can assist you with any trademark related issues you may have regarding China. Contact our China trade adviser Eddie Zhao at EZhao@victorianchamber.com.au for his expert guidance and secure your pathway into the lucrative Chinese market.