Recently, a trademark case involving an internet user from Guangdong ended in defeat, aligning with the earlier analysis by Lao Yang from Putui Intellectual Property and Trademark. The loss was due to Article 32 of the Trademark Law, which prohibits trademark applications from infringing upon others’ prior rights. Among these, pre-existing trade name rights are particularly significant.
Although the other company had been established for many years, it had never registered a trademark in its relevant class. The Guangdong applicant used the company’s trade name to register a trademark. Notably, both companies are located very close to each other, essentially on the same street. Trademarks fall into two categories: registered and unregistered. Even though the other party had not registered its trademark, its continuous use of the name as a trade name qualifies as a prior right and is thus protected.
Nevertheless, it is advisable for enterprises to proactively register their trademarks for protection. Securing rights retroactively can incur significant costs and is far more complex than the initial registration process.
When applying for trademark registration, it’s crucial to note that intentionally or unintentionally using another party’s trade name carries infringement risks. Conversely, the same applies: registering a well-known trademark as one’s own trade name may also constitute infringement.