China awards trademarks to the first applicant, not to the company that built the brand. Squatters take advantage of this by registering foreign brands before the owner files, then selling the mark back, blocking exports or filing complaints against the real brand owner.
How squatting happens
- Opportunists watch trade fairs, e-commerce platforms and foreign trademark registers for brands that are not yet protected in China.
- Former partners, such as distributors, agents or OEM suppliers, register the brand they handled.
- Third parties register a Chinese translation or transliteration of your name, which is often what local customers actually use.
What you can do if your brand is squatted
There is no single remedy. The usual routes are opposition during the three-month window after a mark is published, invalidation of a registered mark on grounds such as bad faith, prior rights or unauthorised registration by an agent, and cancellation for three years of non-use. Sometimes a negotiated purchase is cheaper than a long dispute.
The right route depends on the filing date, what evidence you hold of earlier use or reputation, and whether the squatter is actually using the mark.
How to reduce the risk
- File in China before you manufacture, exhibit or launch, in all relevant classes.
- Register your Chinese-language name, not only the English brand.
- Monitor new filings that resemble your mark.
- Put brand ownership into every contract with Chinese partners.