Defining scope of ‘materially interested party’ in administrative trademark cases

The trademark registration system in China is a benefit-granting administrative act, with the approval of the registration of each trademark establishing a specific administrative act that is open to a legal action. Whether the registration of a trademark is approved or not has a decisive impact on the interests of the rights holder and the interests of persons not involved in the case.

Accordingly, the Trademark Law brings in the concept of “materially interested party” as determined in the Administrative Permission Law and Administrative Procedure Law, specifying that a materially interested party may raise an objection, petition for cancellation or invalidation, or institute a legal action, giving such a party the same procedural and substantive rights as a trademark rights holder or prior rights holder, so as to comprehensively cover subjects of rights to the greatest extent possible and avoid improper permission granting acts.

In the Administrative Permission Law and Administrative Procedure Law, the term “materially interested party” normally indicates a non-specific unit or group, with the key lying in determining whether the specific administrative act has the consequence of directly causing damages to rights and interests. The Interpretations of the Supreme People’s Court of Several Issues Concerning the Application of the Law in the Trial of Civil Disputes Involving Trademark Rights specify that “materially interested party” includes licensees under registered trademark licence contracts and legitimate successors of the registered trademark property rights. However, the intent of the interpretations lies in resolving civil disputes involving trademark rights, and on the basis of registered trademark rights, the licensees and legitimate successors enumerated are materially interested parties with a direct relation to registered trademark rights.