Trademarks or company names: Clearer protection in new revisions

Atrademark is used to distinguish the source of a product, while a company name mainly serves to distinguish a market player. Although the two are different in terms of functions and management systems, they sometimes overlap when it comes to embodying a corporate or brand reputation. Instances such as Coca-Cola, which is both a brand name and a company name, are not uncommon.

However, when an entity uses or registers the same or a similar trademark as that of another entity, conflict is unavoidable. A typical example is using another company’s registered or unregistered well-known trademark in one’s own company name in a manner that misleads the public. Under the current legal framework, such acts of infringement are mainly governed by the Anti-Unfair Competition Law. After many years of judicial practice, rich experience has been accumulated in respect of judging such acts to be infringing, but challenges remain around enforcement, namely, compelling the infringer to stop using the trademark and change its registered company name. The additions to the Anti-Unfair Competition Law (revised draft) which was recently submitted to the NPC Standing Committee for consideration present a solution.

Both administration and justice are viable options, but there are enforcement challenges. As regards the current solution to the problem of using another company’s trademark as one’s own company name, according to relevant regulations, industrial and commercial organs with administrative authority can correct inappropriate company names directly or upon request. In addition, the party concerned may also file an unfair competition lawsuit in court, requesting the defendant to be ordered to stop using or change its company name.

Han Yufeng and Lu Lei are associates at Rui Bai Law Firm