Loopholes in China’s trademark registration may pose a threat to online businesses

China has strange rules for using the Internet. It is quite complex, and Chinese lawyers are always on the lookout to explain things to their clients about Internet use in the country. Using the internet in particular for gaming companies is even more difficult and they usually hire lawyers to talk about the pros and cons. China’s Internet rules are absolutely different from those of Western countries, and it’s hard for foreigners to understand. Having a clear idea about Chinese rules and regulations makes everything easier for foreign clients and companies.

Trademark registration in China

Trademark registration in China for the purpose of using the Internet is again complicated. It is not wise to confuse the process with that of the United States and Vietnam, since the story is totally different here. To begin with, you have to find out the class or category under which the trademark should be registered. Putting it in the correct class will avoid any kind of confusion and will help in the registration process. The biggest loophole in the process and its intention is that the company that registers the trademark does not receive any type of protection against duplication. If the brand logo is used on a book or t-shirt, the company has no power to do anything about it. In addition, the company applying for the trademark registration will only be registered when it submits the documents in Chinese.

In China, this is almost like an unwritten rule; all legal processes must be carried out in the Chinese language. Otherwise, there is a high chance that it will not complete and the purpose will fail. Also, one has to digest the fact that there is no copyright protection in China.

The special treatment for the gaming industry in China

China’s Internet gaming industry suffers from many shortcomings. The rules and regulations are numerous and are almost impossible to understand. To be precise, any kind of foreign content posted on Chinese websites is illegal. Foreign content on your own website is also illegal. However, this illegal business works in China, but some people have also been jailed for this. Sometimes few of the business or website owners earn a huge amount from this flawed system. This is a huge flaw in the Chinese legal system. Some people end up in a soup because of this, while others take illegitimate advantage of the flaws.

The most unfortunate part is that there is no consistency in the system that is harmonizing the entire internet fraternity and supported industries. These confusing rules and the disparity within the system have created havoc and distrust among companies towards the government.

Monetary Expense per Registration

Registering a trademark in China is expensive. Setting up the Internet and also using it together costs a lot. This is another big disadvantage of using the in China. This is especially true for foreign companies. There is another option for business people to do everything at a cheap price. However, that could lead them in the wrong direction. Every cheap transaction cannot be of good quality. Business owners can definitely be brought down by people who help in the registration process. It is not safe to do this cheaply. You may have to pay at the end for that. Some of these people are scammers and thieves who can commit identity theft. This is obviously detrimental to companies that practice.

Recovering a trademark is a very difficult, convoluted and complex process. It takes a lot of money and time on the part of the business owner if his brand is stolen even once. People are advised to be careful that they do not have to face this terrible consequence due to ignorance. Consulting with a lawyer who is trained and conversant in the Chinese system could help the foreign business owner regarding internet theft and fraud in China. It is always advisable to work with an experienced lawyer. Also, doing some research on your own might be helpful. One has to be extremely careful while setting up a business in China and also while using the Internet. Nothing is simple there and nothing is to be taken at face value.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top