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No More Lifelong Protection for Well-known Trademarks in the Chinese Mainland
 
Over recent years, the Chinese Mainland has been beset by the problems arising from recognition of well-known trademarks (called as”famous trdemarks” in Taiwan). Since the well-known trademarks in the Chinese Mainland will not only present certain popalarity, but also bring the enterprises more preference in the aspects of investment and credit, no enterprise is recultant to try best to make its trademark a well-known trademark. As a result, many agencies for illegally “creating” well-known trademarks appear, which use false cases to get trademarks recognized as well-known trademarks through judicial procedure. In fact, however, the “lifelong system” for well-known trademarks impair the credibility of trademarks themselves, and some well-known trademarks exist in name only several years later. However, owing to the fact that the Trademark Law of the Chinese Mainland gives no provision on how to identify and cancel those trademarks which are no more well-known, huge controversy has risen in practice.

Fu Shuangjian, the deputy director of the State Administration for Industry and Commerce, expressed that, for the purpose of settling the problems relating to well-known trademarks as mentioned above, the Chinese Mainland is revising the Provisions on Recognition and Protection of Well-known Trademarks, so as to ensure that those well-known trademarks which are not well-known now can be illegally cancelled.

On September 20, 1991, the Chinese Mainland published the first batch of “China’s Well-known Trademarks,” including Maotao, Tsingtao, Zhonghua and Wuliangye. Among these well-known trademarks, some are still well-known now, but others have disappeared long ago. According to the statistics, at present the Chinese Mainland has more than 1,300 well-known trademarks, but some of them are well-known for adverse events. For example, in the Melamine Event breaking out in 2008, some well-known trademarks owned by 22 dairy enterprises in the Chinese Mainland, such as “Sanlu Milk Powder,” was also involved therein. This further causes consumers to harbour suspicions towards well-known trademarks: As the commodity has caused such a serious event, is the trademark still qualified to become a well-known trademark?

From the legal viewpoint, however, it is not easy to cancel the title of “well-known trademark,” because in the Chinese Mainland, the well-known trademarks are recognized by the State Administration for Industry and Commerce, but there is no legal provisions on the cancellation of well-known trademarks, and no regulation can be relied upon. Therefore, those trademarks which are no more well-known now will seriously impair the image of well-known trademarks, and will also harm consumer. To this end, the Chinese Mainland believes that it is urgent to revise the Provisions on Recognition and Protection of Well-known Trademarks. In addition to formulating the clause for cancellation of well-known trademarks, it is also necessary to give more specific provisions on the requisites based on which a trademark will be recognized as a well-known trademark.

Since the famous trademarks in Taiwan are recognized case by case, even if a trademark is recognized as famous in a litigation procedure, such trademark will not be deemed as famous for ever, and as a result, there is no similar problem. As viewed from the use of trademark, the recognition of famous trademark case by case in Taiwan is more reasonable. However, since the recognition of well-known trademark in the Chinese Mainland also involves other preference, such as the preference in credit and investment, it is a more complicated issue. Therefore, it is worthwhile to see how the relevant provisions will be perfected.
 
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