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RULES FOR IMPLEMENTATION OF THE TRADEMARK LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1993-07-15 Effective Date  1993-07-15  

Rules for Implementation of the Trademark Law of the People's Republic of China



Chapter I  General Provisions
Chapter II  Applications for Trademark Registration
Chapter III  Examination of Trademark Registration
Chapter IV  Modification, Assignment, Renewal and
Chapter V  Administration of the Use of Trademarks
Chapter VI  Protection of Exclusive Rights to Use a Registered Trademark
Chapter VII  Supplementary Provisions

(Approved by the State Council on January 3, 1988, promulgated by the

State Administration for Industry and Commerce on January 13, 1988 and
amended with the approval of the State Council on July 15, 1993, promulgated
by Decree No.14 of the State Administration for Industry and Commerce on
July 28, 1993)(Editor's Note: For the revised text, see Official Reply of
the State Council Concerning Papers Furnished as Attachments to Applications
for Trademark Registration promulgated on April 23, 1995)
Chapter I  General Provisions

    Article 1  The following Rules were formulated in accordance with the
provisions of Article 42 of the Trademark Law of the People's Republic of
China (hereinafter referred to as the Trademark Law).

    Article 2  Applicants for trademark registration must be enterprises,
institutions, social organizations, self-employed industrialists or
businessmen, individual partnerships established in accordance with the law,
foreigners or foreign enterprises listed in Article 9 of the Trademark Law.

    Provisions in the Rules concerning trademarks for goods shall also apply
to service trademarks.

    Article 3  When applying for initial registration, assignments, renewals,
name or address changes, replacement of the certificate of trademark
registration or other related matters, the applicant may either entrust the
process to a trademark agency approved by the State Administration for
Industry and Commerce, or shall otherwise personally handle the matter.

    When foreigners or foreign enterprises apply for trademark registration
in China, or when dealing with related trademark matters, all applications or
other related items shall be completed by an agency designated by the State
Administration for Industry and Commerce.

    Applications filed for international registration shall be submitted in
accordance with the "Madrid Agreement Concerning the International
Registration of Marks".

    Article 4  Fees shall be paid in accordance with relevant stipulations for
applications, assignment, renewal, alterations, replacement of certificates
and examination of trademark registration, and related matters.

    Article 5  The Trademark Office of the State Administration for Industry
and Commerce (hereinafter referred to as the Trademark Office) shall establish
and maintain a Trademark Register which records registered trademarks and
relevant registration matters.

    The Trademark Office shall edit and issue the Trademark Gazette, which
announces trademark registrations and related matters.

    Article 6  In accordance with Article 3 of the Trademark Law, all
collective and certification marks approved and registered with the Trademark
Office shall be protected by law.

    Procedures for the registration and administration of collective and
certification marks shall be separately outlined by the State Administration
for Industry and Commerce, in conjunction with related departments of the
State Council.

    Article 7  All pharmaceuticals for human consumption and tobacco products
listed by the State and published by the State Administration for Industry and
Commerce shall obtain a registered trademark.

    Other goods required to obtain a registered trademark in accordance with
stipulations of the State shall be published by the State Administration for
Industry and Commerce.

    Article 8  The State Administration for Industry and Commerce shall
establish up a Trademark Review and Adjudication Board responsible for final
decisions and adjudications on matters submitted for reexamination in
accordance with provisions of the Trademark Law and the Rules.
Chapter II  Applications for Trademark Registration

    Article 9  When applying for registration of a trademark, applicants shall
file the application with respect to each class of goods as outlined in the
published Classification of Goods. Each trademark registration application
submitted to the Trademark Office must be accompanied by an Application
for Trademark Registration, 10 prototypes of the requested trademark
(prototypes of colored trademarks must be submitted in the exact color), and
one black and white copy of the design blueprint.

    Prototypes of the trademark must be clearly discernible adhesive images
printed on durable paper with a smooth finish, or otherwise be a photograph.
The length or width shall be between 5 to 10 centimeters.

    Article 10  Application forms for trademark registration and related
papers shall be completed in pen and ink, writing brush and ink, or typed.
All information must be clearly written or typed.

    The name, stamp or seal of the applicant applying for trademark
registration shall be the same as that approved or registered. The subject
item shall not go beyond the approved or registered scope of business. The
designation of items shall be filed in accordance with the table for the
classification of goods. A description must be attached for items not listed
in the aforementioned table.

    Article 11  Applications for trademark registration of pharmaceuticals for
human consumption must bear an attached certificate issued by the
administrative department for public health.

    Applications for trademark registration of cigarettes, cigars or packed
cut tobacco must bear attached papers indicating certified production approval
by competent State authorities responsible for tobacco products.

    Applications for trademark registration of other goods which require a
registered trademark in accordance with the stipulations shall bear attached
papers certifying the approval of relevant competent departments.

    Article 12  The date of application for registration of a trademark shall
be the date the Trademark Office receives the application form and related
papers. In cases when the applicant has completed all required application
procedures and has completed the application form and related papers in
accordance with relevant stipulations, the Trademark Office shall assign the
application a file number and issue a Notification of Acceptance. However,
should the applicant fail to properly complete necessary procedures or in some
way fail to complete the application form and related papers in accordance
with relevant stipulations, the application form shall be returned to the
applicant, and no date of application shall be reserved.

    In cases when application procedures are basically complete or the
application form and the related papers are basically in conformity with the
relevant stipulations, but there is a need for the applicant to provide
necessary supplementary information or make corrections thereto, the Trademark
Office shall notify the applicant to submit said information or make said
changes and will require the latter to resubmit the supplementary or corrected
application to the Trademark Office within fifteen days of receipt of the
notification. The filing date shall be reserved if requested supplementary
information of or corrected application is resubmitted to the Trademark
Office within the specified time limit. However, the failure to submit
requested supplementary information or corrected application by the expiration
of the specified period or thereafter, the application form shall be returned
to the applicant, and no date of application shall be reserved.

    Article 13  Should two or more applicants apply for registration of an
identical or a similar trademark for the same or similar items on the same
day, they shall within 30 days after receiving notification from the Trademark
Office furnish requested proof of the dates on which they began using their
respective trademarks. In cases when use of the trademark began on the same
date, or in other cases when a trademark is not yet in use, applicants shall
be required to settle the matter through consultations, and further to submit
their written agreement to the Trademark Office within 30 days. If no
agreement can be reached within said 30 day period, the applicants in
question shall draw lots to determine trademark rights. The Trademark Office
shall either preside over the process, or shall otherwise adjudicate the
matter.

    Article 14  Applicants for trademarks shall submit a Power of Attorney
authorizing a trademark agency to file required applications for the
registration of trademarks, or for all other matters arising concerning said
trademark. The Power of Attorney shall indicate content and competent
authorization. In addition, in cases when the applicant is a foreigner or
foreign enterprise, the Power of Attorney shall clearly indicate the
nationality of the party granting authorization.

    Foreigners or foreign enterprises shall use the Chinese language when
applying for trademark registration or when handling related trademark
matters. Notarization and authentication procedures for Powers of Attorney
and relevant certificates shall be completed in accordance with the principle
of reciprocity. Chinese translations shall be attached to the completed
application form and all related papers submitted in a foreign language.

    Article 15  The Trademark Office maintains the option to review claims for
priority in all applications for trademark registration. Specific procedures
shall be followed as prescribed and promulgated by the State Administration
for Industry and Commerce.
Chapter III  Examination of Trademark Registration

    Article 16  The Trademark Office shall, in accordance with the Trademark
Law, examine all applications accepted. Following the prescribed examination,
distinctive trademarks which are in conformity with relevant provisions of
the Trademark Law, shall receive preliminary approval from the Trademark
Office and published in the Trademark Gazette. The Trademark Office shall
send a Notification of Rejection to all applicant submitting rejected
applications.

    In cases where requests for modifications to applications for trademark
are deemed incomplete, the Trademark Office shall send an Examination Advice
form to the applicant and require the latter make necessary modifications
within fifteen days of receipt of said notification. Should applicants fail to
submit requested modifications by the expiration date of the specified period,
or modifications are submitted at a date beyond the time limit, or modified
applications still fail to conform with the relevant provisions of the
Trademark Law, the Trademark Office shall reject the application and send a
Notification of Rejection to the applicant.

    Article 17  When applying for review of rejected trademarks, applicants
shall, within fifteen days of receipt of the notification of rejection, submit
an Application for Review of a Rejected Trademark to the Trademark Review and
Adjudication Board. The review application must be accompanied by the original
Application for Trademark Registration, ten prototypes of the original
trademark, one black and white copy of the design and the Notification of
Rejection.

    The Trademark Review and Adjudication Board shall render a final decision
and notify the applicant with a written reply. Thereafter, trademarks
receiving preliminary approval shall be transferred to the Trademark Office
for processing.

    Article 18  Parties contesting a trademark (hereinafter referred to as
Party B) which, after examination, has received preliminary approval and has
been published in the Trademark Gazette, shall submit two copies of the
Application for Trademark Opposition to the Trademark Office. The Application
for Trademark Opposition shall indicate both the page number and the issue
number of the Trademark Gazette in which the contested trademark was
published, as well as the number of the preliminary approval. The Trademark
Office shall send one copy of the Application for Trademark Opposition to
the contested party (hereinafter referred to as Party A), requesting a
rebuttal within thirty days of receipt of the notification. An adjudication
will then be made on the basis of facts and relevant information submitted by
the opposing parties. In the absence of a response from Party A by the
expiration date of the specified period, the Trademark Office shall render an
adjudication thereon and notify interested parties of the decision.

    Announcements of registered trademarks published in the Trademark Gazette
prior to final adjudication and entry of force of contested trademarks shall
be null and void.

    Article 19  Interested parties dissatisfied with the adjudication of the
Trademark Office concerning contested trademarks may, within fifteen days of
receipt of the notification of adjudication, apply for review by submitting
two copies of Application for Review of a Contested Trademark to the Trademark
Review and Adjudication Board.

    The Trademark Review and Adjudication Board shall make a final
adjudication, provide interested parties with written notification and
transfer the case to the Trademark Office for relevant processing.

    In cases when opposition to the issuance of a trademark is considered
inappropriate, the Trademark Office shall, after the entry into force of the
adjudication concerning a contested trademark, approve the registration of
the trademark involved therein.
Chapter IV  Modification, Assignment, Renewal and
Adjudication of Disputes Involving Registered Trademarks

    Article 20  When applying for modification of name, applicants shall
submit an Application for Modification of the Name of Trademark Registrant
and verification of the modification to the Trademark Office, and return the
original Certificate of Trademark Registration thereto. Following examination
and approval, the Trademark Office shall return the original Certificate of
the Trademark Registration to which the approval has been affixed to the
applicant, and shall publish said modifications.

    When applying for modifications of address or other relevant matters
related to trademark registration, applicants shall submit an Application for
Modification of the Address of the Trademark Registrant or an Application for
Modification of Other Matters Related to a Registered Trademark, as well as
verification of modifications to the Trademark Office, and shall return the
original Certificate of Trademark Registration thereto. Following examination
and approval, the Trademark Office shall return the original Certificate of
Trademark Registration to which the approval has been affixed to the
applicant, and shall publish said modifications.

    When applying for modifications of names or addresses, registrants shall
follow the same modification procedures in respect to all registered
trademarks.

    Article 21  When applying for the assignment of registered trademarks,
assignors and assignees shall jointly submit an Application for the Assignment
of Registered Trademark to the Trademark Office, accompanied by the original
Certificate of Trademark Registration. The assignee shall complete application
formalities required for applying for assignment of a registered trademark.
The assignee shall fulfill all qualifications outlined in Article 2 of the
Rules. Upon approving the assignment of trademark, the Trademark Office shall
return the original Certificate of Trademark Registration to which the
approval of the assignment has been affixed to the assignee, and shall publish
notification of the assignment.

    When applying for the assignment of a registered trademark, the
registrant shall simultaneously complete the same assignment procedure in
respect to all identical trademarks, which are either identical with or
similar to said registered trademark with respect to both the same or
similar goods. When a registered trademark is assigned in respect to such
goods as outlined in Article 7 of the Rules, the assignee shall, in accordance
with the provisions of Article 11 of the Rules, furnish the Trademark Office
with a certificate issued by the competent department concerned.

    In cases when an application for the assignment of a registered trademark
might in any way mislead the public, create confusion or engender any other
type of inappropriate influence, the Trademark Office shall reject approval
thereof.

    Article 22  When applying for renewal of a trademark registration, the
registrant shall submit an Application for Renewal of Trademark Registration
to the Trademark Office, accompanied by five prototypes of the trademark, and
return the original Certificate of Trademark Registration thereto. Following
examination and approval of the renewal, the Trademark Office shall return the
original Certificate of Trademark Registration to which the approval of the
renewal has been affixed to the applicant, and shall publish notification of
the renewal. The Trademark Office shall reject any renewal applications which
contravene relevant provisions of the Trademark Law.

    The period of validity of a renewed trademark registration shall be
calculated from the day following the expiration of the previous period of
validity of said trademark.

    Article 23  Applicant dissatisfied with the decision of the Trademark
Office to reject an application for assignment or renewal may, within fifteen
days of receipt of the notification of rejection, apply for review by
submitting an Application for Review of a Rejected Assignment or an
Application for Review of a Rejected Renewal, to the Trademark Review and
Adjudication Board. Applications should be accompanied by the original
Application for Assignment of Registered Trademark or Application for Renewal
of Trademark Registration, and the relevant Notification of Rejection.

    The Trademark Review and Adjudication Board shall render a final decision
and notify the applicant of the same in writing. Board approvals of the
assignment or renewal shall be transferred to the Trademark office for
corresponding processing.

    Article 24  Trademark registrants wishing to dispute the registered
trademark of a second party shall, within one year from the date of
announcement of the registered trademark of the latter in the Trademark
Gazette, submit two copies of the an Application for Adjudication of a
Disputed Trademark to the Trademark Review and Adjudication Board.

    Upon making a final adjudication of whether to maintain or cancel the
disputed registered trademark, the Trademark Review and Adjudication Board
shall notify interested parties of the decision in writing, and shall transfer
the case to the Trademark Office for corresponding processing. If the grounds
for cancellation involve only certain registered components, trademark
registration for components involved therein shall be cancelled. Should
adjudication result in cancellation, the proprietor of the disputed trademark
shall, within fifteen days of receipt of the notification of adjudication,
return the original Certificate of Trademark Registration to the Trademark
Office.

    Article 25  Paragraph 1, Article 27 of the Trademark Law outlines the
following fraudulent or unfair acts committed in the acquisition of a
trademark registration:

    (1) Fabricating, withholding the truth or forging an application and
related registration documents;

    (2) Violating the principles of honesty and full faith and credit to
reproduce, counterfeit or translate the well-known trademark of another party
in the registration;

    (3) Acquiring a trademark registration in the name of the trademark agent,
but without the authorization of the trademark proprietor who has entrusted
the registering party;

    (4) Infringing on any prior legal right of another party in the
registration; and

    (5) Using any other unfair means to acquire a registration.

    In accordance with Paragraph 1, Article 27 of the Trademark Law, trademark
registrants dissatisfied with the decision of the Trademark Office to cancel a
trademark registration may, within fifteen days of receipt of the notification
of the decision, apply for review by submitting an Application for Review of
the Cancellation of an Improperly Registered Trademark to the Trademark
Review and Adjudication Board. The Trademark Review and Adjudication Board
shall render a final decision thereon, notify the applicant in writing and
transfer the case to the Trademark Office for the corresponding processing.

    Any organization or individual claiming that a trademark has been
improperly registered may apply for adjudication by submitting two copies of
an original Application for the Cancellation of Improperly Registered
Trademark to the Trademark Review and Adjudication Board. The Trademark
Review and Adjudication Board shall render a final adjudication thereon,
notify interested parties of the decision in writing, and transfer the case
to the Trademark Office for the corresponding processing.

    The Trademark Office shall publish notification of the cancellation of
improperly registered trademarks. The trademark registrant in question shall,
within fifteen days of receipt of the notification of the decision or
adjudication, return the original Certificate of Trademark Registration to
the Trademark Office.

    In cases when a registered trademark is cancelled in accordance with
Paragraph 1 and Paragraph 2, Article 27, of the Trademark Law, exclusive use
rights shall be deemed invalid from the registered date. In cases when
registered trademarks have been cancelled in accordance with a decision or
adjudication, there shall be no recourse concerning any such judgement or
orders concerning trademarks involving infringement cases adjudicated and
enforced by people's courts, or for any such decisions rendered and enforced
by the administrative authority for industry and commerce, as well as any such
trademark assignments or trademark licensing contracts in place prior to said
cancellation. However, compensation shall be paid should the bad faith actions
of a trademark registrant result in damages to any other party.
Chapter V  Administration of the Use of Trademarks

    Article 26  Registered trademarks in use shall carry the indication of
" " (registered trademark - the editor) or the registration sign of
( ) (registered - the editor) or (R). In cases when it is inconvenient for a
commodity to bear such indications or signs, accompanying packaging or
description and other attachments shall be so marked.

    Article 27  In cases when a Certificate of Trademark Registration is lost
or damaged, the trademark registrant must apply for reissuance thereof. The
trademark registrant shall submit an Application for Reissuance of a
Certificate of Trademark Registration to the Trademark Office, accompanied by
five prototypes of the registered trademark. When a Certificate of Trademark
Registration is lost, the trademark registrant shall publish the loss thereof
in the Trademark Gazette. A damaged Certificate of Trademark Registration
shall be returned to the Trademark Office.

    In cases when any person commits any act of forging or altering a
Certificate of Trademark Registration, the local administrative authority for
industry and commerce shall, in accordance with prevailing circumstances,
impose a fine not exceeding 20,000 RMB Yuan, and shall seize all copies of
the forged or altered Certificate of Trademark Registration.

    Article 28  In cases when a person is found to have committed any act
referred to in Items (1), (2) and (3) of Article 30 of the Trademark Law, the
administrative authority for industry and commerce shall order the trademark
registrant to rectify the situation within a specified period. Should
registrant refuses to undertake rectification, the administrative authority
for industry and commerce in the relevant location shall submit the case to
the Trademark Office for cancellation of the registered trademark.

    Article 29  In cases when any person has committed acts referred to in
Item (4) of Article 30 of the Trademark Law, any other interested party may
apply to the Trademark Office for cancellation of the registered trademark in
question by stating the facts related thereto. The Trademark Office shall
notify the trademark registrant and require the registrant to furnish proof of
use of said trademark or otherwise state fair reasons for non-use thereof
within three months of receipt of said notifications. Should the registrant
fail to furnish proof of use by the expiration of the specified period, or
said proof is invalid, the Trademark Office shall cancel the registered
trademark.

    Use of a trademark referred to in the preceding paragraph shall include
the use of said trademark on the goods themselves, as well packages or
containers for said goods, in trade related documents, and use in advertising,
exhibitions or any other business activities.

    Article 30  Applications filed for the registration of trademarks
identical with or similar to a trademark cancelled under the provisions of
Article 29 of the Rules in respect to the same or similar goods shall not be
subject to the provisions of Article 32 of the Trademark Law.

    Article 31  The administrative authority for Industry and Commerce shall
order persons who have committed any act outlined in Article 31 and Item (3)
of Article 34 of the Trademark Law to rectify the situation within a specified
period. In serious cases, said authority shall order the infringing party to
carry out a self-examination of said violations, and circulate a notice
of criticism. In addition, the authority shall impose a fine not exceeding 20%
of the volume of his illegal business, or not exceeding twice the
amount of illegal profits; poisonous and harmful goods, or goods with no use
value, shall be destroyed; the Trademark Office shall cancel registered
trademarks used on such goods in accordance with provisions of the Trademark
Law.

    Article 32  The administrative authority for industry and commerce shall
prohibit any person found to have committed any acts referred to in Item (1)
and (2) of Article 34 of the Trademark Law from any form of advertising
thereof. In addition, the authority shall seal or seize representations of
said trademark and order the infringing party to rectify the situation within
a specified period. In accordance with the seriousness of the case, the
authority may also circulate a notice of criticism, and may impose a fine not
exceeding 20% of the volume of the illegal business.

    Article 33  The administrative authority for industry and commerce shall
prohibit any person found to have violated the provisions of Article 5 of the
Trademark Law from the sale and advertising of the goods in question. The
authority shall seal or seize the representations of the trademark, and may,
according to the seriousness of the case, impose a fine not exceeding 10% of
the volume of the illegal business.

    Article 34  No person shall be permitted to engage in illegal activities
related to traffic in, printing or reproducing representations of registered
trademarks.

    The administrative authority for industry and commerce shall force any
person found in violation of provisions outlined in the preceding paragraph
to cease and desist from illegal activities and shall seize all
representations of the trademark. In addition, in accordance with the
seriousness of the case, the authority may impose a fine not exceeding 20% of
the volume of his illegal business. The Trademark Office may cancel the
registered trademark of any person found illegally selling representations of
said registered trademark. Cases involving infringements on the exclusive
rights for a registered trademark shall be handled in accordance with
provisions in Article 43 of the Rules.

    Article 35  Trademark registrants authorizing any other person to use a
registered trademark shall sign a trademark license contract for such use.
Both the licensor and licensee shall, within three months of the consummation
of a trademark license contract, submit a copy of said contract to the
administrative authority for industry and commerce at the county level of his
location for reference. The licensor shall submit a second copy of said
contract to the Trademark Office for record, with the latter publishing same
in the Trademark Gazette.

    The administrative authority for industry and commerce at the reference
location of the licensor or the licensee shall order any party found violating
the provisions of the preceding paragraph to rectify the situation within a
specified period. Should said party refuse to rectify the problem, the
administrative authority for industry and commerce shall impose the
prescribed fine and submit the case to the Trademark Office for cancellation
of the registered trademark.

    The administrative authority for industry and commerce at the licensee's
reference location shall order any party found violating the provisions of
Paragraph 2, Article 26 of the Trademark Law to rectify the situation within
a specified period, and shall seize representations of the licensed trademark
of the licensee. In addition, in accordance with the seriousness of the case,
may impose a fine not exceeding 50,000 RMB Yuan.

    Article 36  Trademark registrants authorizing any other person to use a
registered trademark shall ensure the licensee is qualified in accordance with
stipulations in Article 2 of the Rules.

    In cases when licensors authorize any other person to use a registered
trademark with respect of any goods outlined in Article 7 of the Rules,
licensee's shall, in accordance with Article 11 of the Rules, furnish the
certifying papers issued by the competent authority concerned as an attachment
thereto when submitting a copy of the contract to the administrative authority
for industry and commerce for reference.

    Article 37  When making a decision to cancel a registered trademark under
the provisions of Article 30 or 31 of the Trademark Law or Article 28, 29, 31,
34 or 35 of the Rules, the Trademark Office shall provide the trademark
registrant and the administrative authority for industry and commerce at the
registrant's reference location with written notification.

    Trademark registrants dissatisfied with the decision of the Trademark
Office to cancel a registered trademark, may, within fifteen days of
receipt of the notification of cancellation, apply for review by submitting
an Application for Review of the Cancelled Trademark to the Trademark Review
and Adjudication Board.

    The Trademark Review and Adjudication Board shall render a final decision,
and provide written notification to the trademark registrant and the
administrative authority for industry and commerce at the registrant's
reference location. The case will then be transferred to the Trademark Office
for corresponding processing.

    Article 38  Trademark registrants applying for removal of a registered
trademark from the Trademark Register, shall submit an Application for
Trademark Removal to the Trademark Office, and return the original Certificate
of Trademark Registration thereto.

    Article 39  The Trademark Office shall publish the cancellation or
removals of all registered trademarks in the Trademark Gazette. Effective
from the date of announcement of the cancellation or removal thereof, there
shall be no further exclusive use rights to the trademark. Where a registered
trademark is cancelled, the administrative authority for industry and commerce
at the registrant's reference location shall recall the Certificate of
Trademark Registration in question and transfer same to the Trademark Office.

    Article 40  Interested parties dissatisfied with decisions made by the
administrative authority for industry and commerce under the provisions
of Chapter VI of the Trademark Law and Chapter V of the Rules may, within
fifteen days of receipt of the notification of the decision, apply to
the administrative authority for industry and commerce at the higher level
for reconsideration of the decision. Said authority at the higher level shall
render a decision within two months of receipt of the application for
reconsideration. Interested parties dissatisfied with the reconsideration
decision may, within fifteen days of receipt of the notification of the
decision, institute legal proceedings in the people's court. In cases when no
application for reconsideration has been filed, no legal proceedings
instituted or there is no on-going performance related to the decision by the
expiration of the specified period, the administrative authority for industry
and commerce shall request that the relevant people's court execute compulsory
action thereof.
Chapter VI  Protection of Exclusive Rights to Use a Registered Trademark

    Article 41  The following acts shall constitute infringements of the
exclusive rights to use a registered trademark as referred to in Item (4) of
Article 38 of the Trademark Law:

    (1) Knowingly or otherwise dealing in goods which infringe on the
exclusive rights of another person to use a registered trademark;

    (2) Using any word, phrase or device identical with, or similar to a
registered trademark of another person used for same or similar goods, as
the designation or design of goods which is sufficient to mislead the public;
and

    (3) Intentionally providing any person with facilities related to storage,
transportation, postal services and concealment which infringe on the
exclusive rights of another person to use a registered trademark.

    Article 42  In cases involving infringements on the exclusive rights of
another person to use a registered trademark, any interested party may lodge
a complaint or report the case of infringement to the administrative authority
for industry and commerce at or above the county level in the reference
location of the infringer or location of the actual act of infringement.
The trademark registrant may otherwise institute legal proceedings directly
with people's courts.

    When determining infringements on the exclusive rights of a person to
use a registered trademark, the administrative authority for industry and
commerce may exercise the following functions and powers to investigate and
obtain evidence:

    (1) Conduct direct inquiries with interested parties in the case;

    (2) Inspect all articles related to the act of infringement, and when
necessary order the confiscation of same;

    (3) Investigate all acts of infringement; and

    (4) Examine or reproduce all contracts, accounts and any other commercial
data connected with the act of infringement.

    Interested parties are required to participate fully when the
administrative authority for industry and commerce exercises the functions
and powers outlined in the preceding paragraph.

    Article 43  The administrative authority for industry and commerce may
take the following action to halt infringements on the exclusive rights of a
person to use a registered trademark:

    (1) Issue an order to immediately cease and desist from the sale of such
goods;

    (2) Seize and destroy illegal representations of the trademark in question;

    (3) Order the counterfeit trademark be removed from remaining goods;

    (4) Seize molds, plates and any other paraphernalia directly related to
infringements on the exclusive rights of a person to used a trademark; and

    (5) Order and supervise the destruction of articles related to the
infringement in cases where it is unable to halt acts of infringement
according to measures outlined in the preceding four sub-paragraphs, or if it
is impossible to separate the infringing trademark from the goods.

    In cases when infringements of the exclusive right to use a registered
trademark are not considered serious enough to constitute a crime, the
administrative authority for industry and commerce may, in accordance with
the seriousness of the case, impose a fine not exceeding 50% of the volume of
the illegal business, or five times profits earned as a result of the
infringement. With regard to representatives of an organization directly
responsible for infringements on the exclusive rights of a person to use a
registered trademark, the administrative authority for industry and commerce
may, in accordance with the seriousness of the case, impose a fine not
exceeding 10,000 RMB Yuan.

    The administrative authority for industry and commerce may, at the request
of the trademark registrant, order infringing party to pay compensation for
damages suffered by the former. Interested parties dissatisfied therewith may
institute legal proceedings with the relevant people's court.

    Article 44  Interested parties dissatisfied with the decision made by the
administrative authority for industry and commerce under the provisions of
Paragraph 1 and 2 of the preceding article may, within fifteen days of
receipt of the notification of the decision, apply to the administrative
authority for industry and commerce at the higher level for reconsideration
of the decision. Said authority at the higher level shall render a decision
within two months of receipt of the application for reconsideration.
Thereafter, interested parties dissatisfied with the reconsideration decision
may, within fifteen days of receipt of the notification of the decision,
institute legal proceedings with the relevant people' court. In cases when no
application for reconsideration has been filed, no legal proceedings
instituted, or there is no on-going performance related to the decision by the
expiration of the specified period, the administrative authority for industry
and commerce shall request that the relevant people's court execute compulsory
action thereof.

    Article 45  Where any person misrepresents the registered trademark of
another person, any interested party may lodge a complaint with, or report
the violation, to the administrative authority for industry and commerce, or
appropriate procuratorial agency.

    Complaints lodged or reports of the violation received by the
administrative authority for industry and commerce shall be dealt with in
accordance with provisions in Article 43 of the Rules. If cases are
serious enough to constitute a crime, any person directly responsible for the
infringement shall be prosecuted according to law by the responsible judicial
department.
Chapter VII  Supplementary Provisions

    Article 46  Parties applying for review under the provisions of
Article 21, 22 or 35 of the Trademark Law or Article 23 or 25 of the Rules
shall do it within the specified period. In cases involving extraordinary
circumstances or for various other reasons deemed fair reasons, the interested
party may request an extension of thirty days before the expiration of said
period. The final decision for approval or disapproval, however, rests solely
with the Trademark Review and Adjudication Board.

    Documents mailed or otherwise delivered by post shall be dated according
to the date of the postmark. In cases when postmarks lack clarity, or there
is no postmark, the date of receipt or the mailing date by the interested
party respectively shall be twenty days after the Trademark Office dispatches
or twenty days before the Trademark Office receives the document in question.

    Article 47  Application forms for trademark registration or any other
matters related to trademarks shall be prescribed and published by the State
Administration for Industry and Commerce.

    The schedule of fees with respect to applications for trademark
registrations and for any other matters related to trademarks shall be
prescribed and published by the State Administration for Industry and
Commerce in accordance with the relevant state rules and regulations.

    The Classification of Goods for the Purposes of the Registration of
Trademarks shall be published by the State Administration for Industry and
Commerce.

    Article 48  Service marks in use prior to July 1, 1993, identical with,
or similar to any registered service mark (other than a well-known service
mark) of another party with respect to the same or similar services, may
continue in accordance with relevant regulations issued by the State
Administration for Industry and Commerce.

    Article 49  The State Administration for Industry and Commerce shall be
responsible for interpreting the Rules.

    Article 50  The Rules shall enter into force on the date of promulgation
thereof.



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