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Trademark Coexistence Agreements in China: Filing Procedures and Legal Boundaries

For international businesses entering China, trademark conflicts pose significant risks. Similar marks in overlapping industries often trigger rejections under China’s Trademark Law (Article 30). Trademark coexistence agreements offer a strategic solution—yet their enforcement remains complex. This guide demystifies the process and limitations.

What Is a Trademark Coexistence Agreement?

A legally binding contract where two parties agree to register/use similar trademarks without consumer confusion. In China, these agreements:

  • Resolve prior-right conflicts (e.g., similar marks in related classes).
  • Supplement but don’t override absolute grounds for refusal (e.g., bad faith, public morality violations).

Filing Procedures with CNIPA

China’s National Intellectual Property Administration (CNIPA) evaluates agreements case by case:

  1. Document Submission:
  • Original agreement (Chinese translation required).
  • Evidence of distinct market presence (e.g., consumer surveys, geographic boundaries).
  1. Examination Criteria:
  • Distinctiveness: Marks must not cause confusion (Article 13, Trademark Law).
  • Good Faith: Agreements can’t circumvent legal prohibitions (Article 44).
  1. Timeline: 3–9 months for review post-submission.

⚠️ Critical Note: CNIPA rejects agreements if:

  • Marks are identical for identical goods/services.
  • Public interest is compromised (e.g., consumer safety).

Legal Limitations in China

Coexistence agreements have narrow enforceability:

  • No Precedent Value: Each CNIPA decision is independent—past approvals don’t guarantee future outcomes (Supreme Court Guiding Case No. 160).
  • Third-Party Challenges: Competitors can invalidate agreements via opposition/invalidation actions (Article 45).
  • Judicial Scrutiny: Courts may void agreements violating antitrust principles (Anti-Monopoly Law, Article 17).

Case Study: Starbucks vs. Xingbake

Starbucks secured “星巴克” (Xīngbākè) in China but faced conflicts with local coffee brand “Xingbake.” A coexistence agreement allowed both marks to register by:

  • Proving distinct customer bases (premium vs. budget segments).
  • Limiting “Xingbake” to specific provinces.

Strategic Recommendations

  1. Pre-Agreement Due Diligence:
  • Conduct a trademark similarity search using CNIPA’s database.
  • Verify no prior identical marks exist (Article 31).
  1. Drafting Essentials:
  • Define clear territorial/usage scopes.
  • Include dispute resolution clauses (e.g., arbitration).
  1. Post-Filing Monitoring:
  • Track third-party oppositions via CNIPA’s Gazette.
  • Renew agreements every 5–10 years.

Why Partner with China-Specialized Services?

Navigating CNIPA’s nuanced stance requires local expertise. ChinaBizInsight offers:

  • Trademark conflict resolution support, including agreement drafting and CNIPA liaison.
  • Comprehensive IP verification to preempt disputes.

📌 Explore our Intellectual Property Search Services for end-to-end trademark management.

Conclusion

Coexistence agreements are viable in China but demand precision. Align terms with CNIPA’s standards, anticipate third-party challenges, and engage experts to mitigate risks. For cross-border businesses, proactive trademark strategy is non-negotiable.


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