Applying for Trademark Registration with Special Relationships Involved Carries Risks!

A few days ago, a netizen from Inner Mongolia consulted Lao Yang from Putui Intellectual Property about an issue. He had registered a trademark in a service class and wanted to sue a shop owner for trademark infringement. At first glance, it seemed feasible, but further analysis revealed complications.

A local company had already registered the trademark name in product classes—such as Class 3 (cosmetics) and Class 5 (pharmaceuticals)—but not in specific service classes like Class 44 (beauty salons) or Class 35 (pharmacies). The company operates dozens of franchised stores. The netizen had previously sourced goods from this company, indicating a sales or agency relationship between them. Moreover, his trademark registration occurred after the company had established its stores.

This directly violates Article 32 of China’s Trademark Law, which prohibits trademark applications from infringing upon existing prior rights. When the netizen applied for registration, the company likely lacked sufficient awareness to file an opposition during the announcement period or seek invalidation after the certificate was issued.

Consequently, enforcing his trademark rights would be challenging. If the company engages even minimally qualified professionals, his trademark could be invalidated, and he may face corresponding liability for damages.