The Third Amendment to the China’s Trademark Law came into force on May 1, 2014. According to the Amendment, the term “well-known trademark” is no longer allowed to be included in product description, nor is it to be allowed to be used for advertising, exhibition or any other business activities. Anyone violating this rule shall be liable for a monetary penalty of 100,000 RMB. The Amendment also clarifies that the products which have already been in market circulation with the term “well-known trademark” before May 1, 2014, may continue to sell until they are sold out.
In addition, the trademark owners who use the term "well-known trademark" on products, or packages or containers of goods, shall bear liabilities and be investigated by the local administrations for industry and commerce. Those who don’t have domiciles or have controversial domiciles in China will be disposed by the local department of industry and commerce appointed by the SAIC
According to the SAIC, the concept of “well-known trademarks” introduced in the version of the Trademark Law in 2001was to provide an enhanced level of protection for widely known trademarks from “free rider” infringement. The term was by no means a symbol of superiority in product quality as might be misinterpreted by most trademark owners.
It’s reported that some manufacturers have taken actions to change the packages for their products, and processes have also been taken in most market places to eliminate the “well-known trademark” term used on the products in selling.
