Why “Trademark Cancellation for Non-Use” (撤三) Threatens Your China Business
Under China’s Trademark Law (Article 49), registered trademarks risk cancellation if unused for three consecutive years. Known as “撤三” (chè sān), this rule combats trademark hoarding but also exposes legitimate brands to challenges if usage isn’t properly documented. For overseas companies, navigating evidence requirements demands precision.
What Constitutes Valid “Use” in China?
The China National Intellectual Property Administration (CNIPA) requires proof of public, commercial, and continuous use in China. Acceptable evidence includes:
- Product Sales & Distribution
- Dated sales contracts, invoices (showing the trademark and Chinese recipient details).
- Customs records for imports into China.
Example: A French cosmetics brand’s 2022–2024 invoices with its logo, shipped to Shanghai distributors.
- Marketing and Advertising
- Dated social media ads (WeChat/Weibo posts targeting Chinese users).
- Event photos, exhibition booth signage (e.g., China Import and Export Fair).
- Packaging/Labeling
- Product images showing the trademark physically used in China.
⚠️ Rejected Evidence: Internal documents, undated materials, or items without public visibility.
4 Critical Mistakes That Invalidate Your Evidence
- Non-China Focus: Global sales reports ≠ China usage.
- Insufficient Time Coverage: Gaps in the 3-year period.
- Missing Trademark Visibility: Invoices listing products but not the mark.
- Unverified Translations: Documents not notarized for Chinese proceedings.
Proactive Protection: 3 Steps for Foreign Brands
- Audit Annually
Track usage across sales, marketing, and logistics in China. - Centralize Documentation
Maintain a digital repository with:
- Dated, logo-branded invoices
- Market entry permits (e.g., China FDA approvals)
- Localized ad campaign records
- Preempt Challenges
Proactively file usage declarations with CNIPA every 2–3 years.
Case Study: A German machinery brand avoided cancellation by submitting 36 months of Shenzhen factory procurement contracts, Taobao store screenshots, and trade fair attendance records—all notarized.
When Evidence Falls Short: Mitigating Risks
If facing a cancellation petition:
- Rebuttal Window: File counter-evidence within 2 months of CNIPA notification.
- Legitimate Non-Use Excuses: Force majeure (e.g., COVID-19 disruptions), regulatory delays.
Why Evidence Collection Challenges Foreign Businesses
Compiling CNIPA-compliant proof requires:
- Understanding Chinese administrative procedures.
- Sourcing notarized/legalized documents (e.g., via Apostille or consular authentication).
- Navigating language barriers and local record-keeping norms.
💡 Tip: Digital platforms like Tmall generate automatic evidence—leverage China’s e-commerce footprint.
Conclusion: Turn Regulatory Risk Into Brand Assurance
China’s “use it or lose it” rule underscores the need for systematic trademark management. By embedding evidence collection into your China operations, you transform compliance into a strategic shield.
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