Chinese trademark registration provides many benefits to foreign-based companies. Many businesses, through manufacturing, distribution, and sales, will likely do business in China at some point. Therefore, it is best to obtain trademark registration in China as soon as possible, in order to avoid bad faith registrations and protect against counterfeiting.
As your business grows, it is important to create an international trademark plan. Even if you do not plan to do business in China, it is wise to consider registering your trademark with the Chinese Trademark Office, or CTO. Consider the following benefits of Chinese trademark registration for foreign companies.
The Ability to do Business in China
In today’s global economy, it isn’t farfetched to assume that many businesses, regardless of size or scale, may one day do business in China. In fact, with a population of over 1 billion, you may already be reaching Chinese customers. Once you factor in manufacturing and distribution channels, as well as potential licensing agreements, the likelihood that your brand will find its way to China at some point in the future increases further.
If you currently own a trademark registered in the U.S., you understand the important legal protections it provides. It’s important to note, however, that those protections only apply to disputes that occur within the United States. If you wish to gain legal protections for your brand internationally, you will need to register in the countries you wish to be protected, including China. If your business plan does not include entering the Chinese marketplace for some time, you may still want to consider beginning the process as soon as possible. This way, when you are ready to expand, your Chinese trademark will be ready as well.