Thousands of Turkish businesses manufacture in China. Most of them assume registering their brand there is unnecessary: "I don't sell there anyway." That assumption is one of the most expensive misconceptions in trademark law. Staying unregistered in China doesn't just mean losing the Chinese market — it means putting your own manufacturing and export at risk. This article covers the dynamics of China's trademark system and the strategies for protecting yourself.
The First-to-File Rule and Its Consequences
China applies the first-to-file principle strictly. Having used a mark for years doesn't mean that mark belongs to you in China. The only thing that matters is who filed with the registry first.
This rule is exactly why trademark squatting is so widespread: local actors register foreign brands before they enter the market, then either offer to sell the registration at a high price or block its use altogether.
Chinese law has recently strengthened measures against bad-faith registrations and introduced administrative sanctions. Even so, the real protection still comes down to taking action yourself: filing before your competitor does.
The Concrete Risk for Manufacturers
Even if you don't sell in China, you can run into scenarios like these:
- Export blockage: If your brand is registered to someone else in China, that person can file a customs application and stop your own products from leaving China. Your production stays stuck at the factory.
- Manufacturer leverage: If your contract manufacturer has registered the brand in its own name, it gains the upper hand in price and terms negotiations; if you try to end the relationship, the brand stays with them.
- Loss of tooling and design: Once the manufacturer holds the brand, there's nothing stopping it from selling the same product to others under your brand.
- A closed door to market entry: If you later want to enter the Chinese market, you won't be able to use your own brand.
All of these risks disappear with a registration that costs relatively little.
China's Subclass System
China follows the Nice Classification but layers its own subclass structure on top of it. Each Nice class is broken down internally into subgroups, and protection is assessed at that subgroup level.
The practical consequences matter:
- Holding a registration in a class doesn't mean you're protected across the entire class.
- If the subgroup your product belongs to is left out of your application, someone else can register the same mark in that subgroup.
- Because similarity is also assessed at the subgroup level, the same mark in a different subgroup is often not treated as a bar to registration.
This structure means the goods and services list in a Chinese application needs to be drafted very carefully. Simply translating your Turkish scope word-for-word usually produces incomplete protection.
Why Getting a Chinese-Character Mark Matters
In the Chinese market, a foreign brand eventually gets referred to by a Chinese name, one way or another. That name can emerge in three ways: transliteration by sound, translation by meaning, or an entirely new name.
Here's the critical point: if you don't decide that Chinese name yourself, the market will decide it for you. And someone else can register whatever name the market lands on. In the end, your Latin-script mark belongs to you, but the name Chinese consumers actually recognise you by belongs to someone else.
That's why a standard China strategy includes:
- Registering the Latin-script mark
- Registering a Chinese-character mark (selected with linguistic advice)
- Registering a logo/figurative mark
- Defensive filings covering common misspellings and similar-sounding names
When choosing a Chinese name, both phonetic closeness and appropriateness of meaning need to be considered; a phonetically close name with a negative connotation can cause lasting marketing damage.
Filing Route: Madrid or Direct?
| Via the Madrid Protocol | Direct national application | |
|---|---|---|
| Cost | Economical for a multi-country plan | Reasonable for a single country |
| Scope control | Limited subclass detail | Subclasses can be selected individually |
| Dependence on base application | Tied to the Turkish registration for the first 5 years | Independent |
| Local agent | May not be needed if nothing goes wrong | Required |
Because of China's subclass structure, a direct national application is generally the safer route for companies that see China as a priority market. For companies expanding into many countries at once, the Madrid System offers a cost advantage. We explained the logic behind Madrid in our Madrid Protocol article.
What Can You Do If Your Brand Has Been Squatted?
If you've received the bad news, not every avenue is closed:
- Cancellation for non-use: Trademarks that go unused for three consecutive years can be subject to a cancellation request. Squatted marks generally aren't used, which makes this route effective.
- Bad-faith claim: If the applicant had a commercial relationship with you, or it can be proven they knew of your brand, oppositions and invalidation requests are stronger.
- Well-known status: If your brand is recognised internationally, you can rely on that status. See What Is a Well-Known Trademark?
- Negotiation: Sometimes the fastest fix is simply buying the registration back — given how long and uncertain legal proceedings can be, this can be commercially sensible.
Every one of these routes costs time and money. The cost of taking precautions up front is far lower than any of them.
The Use Requirement and Keeping an Evidence Archive
China, too, expects a registered trademark to be used; a mark left unused for a set period becomes open to a cancellation request. There's also ongoing regulatory discussion around requiring registrants to periodically declare their use.
For this reason, companies with a Chinese registration need to keep a use archive just as they would in Turkey: invoices, packaging images, trade fair participation, distribution agreements and promotional materials.
Process and Timeline
A trademark application in China broadly goes through these stages: acceptance and formal examination, substantive examination, publication and opposition period, then registration. The total time varies with how the file proceeds; applications that receive no opposition are usually completed in around a year.
This timeline needs to be considered alongside your production plans. Filing months before you even start looking for a manufacturer for a new product secures your priority right even while registration is still pending. Since the filing date is what matters, you don't have to wait for registration to complete — what matters is being first in line.
Defensive Filings
A common practice in China is to file defensive applications alongside the main brand. These fall into three groups:
- Similar-sounding names: Alternative character combinations close to the Chinese pronunciation of your brand.
- Common misspellings: Frequently seen misspelled versions of your Latin-script mark.
- Neighbouring subclasses: Subgroups related to, but not directly covering, your product.
These filings add extra cost, but in a market where squatting is common, they're often more economical than the cost of later cancellation and invalidation proceedings.
Contractual Safeguards in Supplier Relationships
Alongside registration, your manufacturing agreements need the following clauses:
- A ban on the manufacturer registering your brand or a similar sign in its own name
- A commitment to assign any such registration to you at no cost
- A ban on overrun production and clear ownership of tooling
- Destruction or delivery to you of any excess production
- A ban on, or approval requirement for, subcontracting
- Confidentiality and design rights
Timing: When Should You Apply?
The right time is before you start looking for a manufacturer. Even sending a sample request, visiting a factory, or getting a price quote makes your brand visible to local actors.
Your priority right is also protected during the period between filing and registration; that's why filing early gives you protection even while registration is still pending.
Build Your China Strategy with Webx
China is both the world's largest manufacturing hub and one of the markets with the heaviest trademark squatting. The conclusion from that combination is clear: every company working with China needs to be registered there.
At Webx, we build your trademark strategy for China and your other target markets, plan your subclass coverage, and run the process with local counterparts. Explore our trademark registration service or get in touch about your international plans.