Chinese Brands Go Global - CHINA TR ADEMARK REPORT 2018 - CompuMark

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Chinese Brands
Go Global
    C H I N A T R A D E M A R K R E P O R T 2 018
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                   03

Contents
AUT H O R 'S IN T R O D U CTI O N                         04   Indust r y Se ctor G rowt h — Fore i g n
                                                               Tra de m a rk A ppl i cat i ons 2 0 1 2 to 2 0 1 7   34
BACKG R O U N D                                           06

CHI N E S E A P P L IC A N TS —                                N i ce Cl a s s D i st ri b ut i on 2 0 1 7 —
FOREIG N T RA D E M ARK A P P L I CATI O N S              09   G oods Ve rs us Se r vi ce                           36

An n u a l Fil l in g Vo l u m e S i nce 2 0 1 2          10   CHIN A BY R EGION                                    39

                                                               Source Of Fore i g n Tra de m a rk
Ke y Reg iste r s                                         12
                                                               A ppl i cat i ons By Chi ne s e A ppl i ca nts       40
On e Be l t a n d O n e Road                              14
                                                               TRADEMAR KS AR OUN D THE WOR LD                      43

Gro wth                                                   15   A nnua l G rowt h Of M a j or
                                                               Tra de m a rk Reg i ste rs                           44
Top C h in e s e A p p l icants —
Foreig n Tra d e ma r k A p p li cat i o ns i n 2 0 1 6   16   L a rge st Reg i ste rs
                                                               By A nnua l Fi l i ng Vol um e                       46
COUN T R Y / R E G IO N A N A LYSI S                      19
                                                               S UCCESS RATES                                       51
Where D id C h in e s e A p p li cants F i le
Tra de m a r k A p p l icat i o ns i n 2 0 1 7 ?          20   Com pum a rk Succe s s Inde x — Succe s s
                                                               Rate A chi e ve d By Chi ne s e A ppl i ca nts       52
Top Fil e r s O f Fo re ig n Trad e m ark s               21
                                                               Com pum a rk Succe s s Inde x                        53
Top Fil e r s O f Fo re ig n Trad e m ark s —
Tren d s                                                  22   Tra de m a rk Be st P ra ct i ce s —
                                                               Fi l i ng Inte rnat i ona l l y                      54
I n ternatio n a l Reg ist rat i o ns —
Top A p p l ica n ts By O w ne r C o u nt r y             24   B EST P RACTICES FR OM MAIN L AN D CHIN A            57

I n ternatio n a l Reg ist rat i o ns —                        Be st P rat i ce s from M a i nl a nd Chi na         58
Most Fre q u e n tl y D e si gnated C o u nt r i e s      25
                                                               CON CLUS ION                                         61
CL ASS IF IC AT IO N A N D I N D USTR Y A N A LYSI S      27
                                                               COMP UMAR K — HELP IN G B RAN DS
N ice C l a s s D istr ib u t i o n — Fo rei gn                OWN ERS GO GLOB AL                                   62
Applicatio n s By C h i nese Ap p li cants                28

Chin e s e Tra d e m a r ks — C o m par i ng Fo rei gn
a n d D o me stic A p p l i cat i o ns                    30

I n dustr y Se cto r D ist r i b u t i o n                32
04                               COMPUMARK CHINA TR ADEMARK REPORT 2018

     Following in the footsteps of mainland
     China’s domestic trademark register,
     which is the largest in the world, Chinese
     brands are now appearing on foreign
     trademark registers in increasingly
     large numbers.

     CompuMark™ has been tracking the drive
     from mainland China to build global brands,
     and this report shows that – in just four years
     – Chinese brands have gone from number 10
     in the world by filing volume to number two,
     and are likely to be challenging US brands
     for number one in the world in 2018.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                  05

INTRODUCTION

Four years ago, CompuMark™ wrote                                 a separate register it would rank between
a landmark report looking at Chinese                             Mexico (138,400) and the European Union
brands in a global environment.                                  Intellectual Property Office (EUIPO)
Back in 2014, Chinese trademark activity                         (118,762) as the 8th largest register in the
was increasing at an unprecedented                               world. Chinese applicants filed one in
rate — applications on the Chinese                               every nine US applications in 2017 – more
domestic trademark register had broken                           than 50,000 applications in a single year.
the two million barrier (the first register
in history to reach this milestone),                             The statistics alone are remarkable,
and foreign trademark applications by                            but more importantly they tell a story.
Chinese applicants were at 30,000 and                            Trademark applications are a powerful
growing by more than 10% per annum.                              indicator of economic activity.
                                                                 They contain information on markets
In 2014, these figures felt colossal – they                      (registry country), time (filing date), source
represented growth and volume that the                           (applicant country) and business activity
trademark world had never seen before.                           (classes and specifications). They can be
But looking back from our 2018 vantage                           used to see where a journey has started,
point, they seem relatively small in scale                       the route it has taken, and where it is leading.
compared to what has followed.
                                                                 With access to the world’s largest
In 2017, the Chinese domestic trademark                          trademark record library3 and 50+ years
register saw more than 5.2 million                               of analytical expertise, CompuMark™ is
applications filed1 , approximately ten                          uniquely placed to track this journey and
times the size of the world’s second largest                     to tell the story of Chinese brands on
register (the USA). In the first week of                         the world stage. It’s quite a story.
September 2017, there were more than
116,000 applications filed on the Chinese                        Robert Reading
register – more than were filed on the                           Director, Custom & Managed Solutions
EUIPO register in the whole of 2016.2                            CompuMark
Chinese applicants filed nearly 120,000                          May 2018
foreign applications in 2017 – if this was

1. The Chinese Trademark Office started accepting multi-class applications from 1st May 2014,
    but the vast majority of applications are filed covering just a single class (98.6% of all applications in 2017).
2. 113,670 EUTM applications were filed in 2016.
3. SAEGIS® – 62.6 million active records, 186 trademark registers, over 200 countries.
06                                                                 COMPUMARK CHINA TR ADEMARK REPORT 2018

BACKGROUND

             The Chinese
             trademark register
             has seen over 50%
             of all trademark
             applications filed
             globally in recent
             years.

             For over 20 years, the Chinese trademark       Although mainland China has just under
             register has seen more trademark               19% of the world’s population, the Chinese
             applications filed annually than any other     trademark register has seen over 50% of
             register in the world. With over 1.4 billion   all trademark applications filed globally in
             consumers, the Chinese market is seen as       recent years. And the proportion of global
             a key target for international brands.         trademark applications filed in mainland
                                                            China is still growing.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                        07

                                                 Figure 1 : Chinese
                                                 population as a proportion
                                                 of the world population

                   18.8%                 18.7%

                     2016                 2017

                                                 Figure 2 : Trademark
                                                 applications in mainland
                                                 China as a proportion of
                                                 global trademark applications

                   53.9%                 59.6%

                     2016                 2017
COMPUMARK CHINA TR ADEMARK REPORT 2018   09

1 : Chinese Applicants –
    Foreign Trademark
    Applications
10                                                                                       COMPUMARK CHINA TR ADEMARK REPORT 2018

ANNUAL FILING VOLUME SINCE 2012

                    In 2017, mainland China
                    ranked second in the
                    world with the US, Hong
                    Kong, Germany and UK
                    making up the top five.

                    When CompuMark™ last looked at the                          Growth was steady but not spectacular
                    Chinese trademark sector in 2014, foreign                   (14% in 2013 compared with 2012),
                    trademark applications filed by Chinese                     and mainland China ranked 10th in the
                    applicants outside of mainland China                        world4 with the USA, Germany, UK, Italy
                    were relatively modest.                                     and France making up the Top Five for
                                                                                filing foreign trademark applications.

                    4. WIPO Statistical Country Profile for China
                        http://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=CN
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                          11

   Figure 3 : Chinese applicants — foreign trademark applications 2012 – 2017

                         140,000

                         120,000
NUMBER OF APPLICATIONS

                         100,000                                                         115,444

                          80,000
                                                                                88,242

                          60,000

                                                                       62,519
                          40,000
                                                     50,408
                                            44,014
                                   38,641
                          20,000

                               -
                                   2012     2013     2014              2015     2016      2017

                                                       FILING VOLUME

   The picture since 2014 has changed. Chinese applicants are now
   filing in significant numbers around the world, and in 2017 filed
   nearly 120,000 foreign trademark applications, with the number
   of foreign applications almost doubling in the last two years.
12                                                                COMPUMARK CHINA TR ADEMARK REPORT 2018

KEY REGISTERS

                Since 2014 the US
                has become the
                major market for
                Chinese brands.

                The key registers for Chinese applicants   Since 2014, the US has become the major
                filing trademark applications on           market for Chinese brands, with US
                registers outside of mainland China        trademark applications growing almost
                have traditionally been close neighbors    exponentially from just over 6,200 in 2014
                of mainland China in South East Asia,      to over 50,000 in 2017. Europe (especially
                together with the US and Europe.           the EUIPO register) has moved into
                                                           second position.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                           13

    Figure 4 : Chinese applicants — top registers around the world (1 to 5)

                                 60
                                                                                                                                       USA

                                                                                                                                       EUIPO
                                 50
NUMBER OF APPLICATIONS (000’S)

                                                                                                                                       Hong Kong

                                 40                                                                                                    Taiwan

                                                                                                                                       Japan
                                 30

                                 20

                                 10

                                  0
                                       2012            2013               2014              2015               2016             2017

    Figure 5 : Chinese applicants — top registers around the world (6 to 10)

                                 4.0
                                                                                                                                       South Korea

                                 3.5                                                                                                   Malaysia
NUMBER OF APPLICATIONS (000’S)

                                 3.0                                                                                                   IR (WIPO)*

                                                                                                                                       UK
                                 2.5
                                                                                                                                       Australia
                                 2.0

                                 1.5

                                 1.0

                                 0.5

                                  0
                                       2012            2013               2014              2015               2016             2017

    * IR (WIPO) - IR refers to                an International Registration, filed at the World Intellectual Property Office.
14                                                                                                           COMPUMARK CHINA TR ADEMARK REPORT 2018

ONE BELT AND ONE ROAD

         The One Belt and One Road (OBOR)5 initiative is a Chinese project focusing on developing
         infrastructure and investment with mainland China’s neighbors and key trading
         partners. Among the regional and non-regional members of the OBOR initiative, Chinese
         trademark activity in 2016 was highest in South Korea and Australia, both with significant
         use of the Madrid system. Thailand – via national trademark applications – was also a key
         filing area.

          Figure 6 : OBOR trademark applications — Chinese applicants 2016

          South Korea

          Australia

          Thailand

          Vietnam

          Russia

          Philippines

          Turkey

          Indonesia

          Egypt

          Saudi Arabia

          Kenya

          Pakistan
                                                                                            0
                                                                        0
                                                     0

                                                                                  0

                                                                                                             0
                                                               0

                                                                                                                    0
                                           0

                                                                                                        0
                                                                                          50
                                                                      50
                                                   50

                                                                                00

                                                                                                            50
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                                                                                                   00
                                0
                              50

                                                                              3,

                                                                                        3,
                                                           2,

                                                                     2,

                                                                                                                 5,
                                        1,

                                                 1,

                                                                                                  4,

                                                                                                            4,

                                  National            IR

          5. For more information on OBOR, visit the official website: https://eng.yidaiyilu.gov.cn/
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                          15

GROWTH

                     The recent growth rate in trademark applications from mainland China is higher than ever
                     before. Application numbers increased by more than 40% in 2017 compared with 2016 on a
                     number of major registers: the US register (+61%), Europe (EUIPO +55%), Japan (+73%),
                     United Kingdom (+122%), Australia (+139%) and Canada (+49%):

                     Figure 7 : Top foreign registers for Chinese applicants — 2016 vs 2017

                                                                                                0%
                                                                                           %

                                                                                                                  %
                                                                                                        %
                                           %

                                                                 %

                                                                                %
                                                                         %
                                                       %

                                                                                            0

                                                                                                                 0
                                                                                                         0
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                                            0

                                                                 40

                                                                               80
                                                                       60

                                                                                                12
                                                       20

                                                                                         10

                                                                                                              16
                                                                                                      14
                                         -2

                                                                                                                      2016
                     U.S. Federal
                                                                                                                      2017
                     EUTM                                                                                             Annual Growth

                     Hong Kong

                     Taiwan

                     Japan

                     South Korea

                     Malaysia

                     WIPO (IR)

                     United Kingdom

                     Australia

                     India

                     Thailand

                     Macao

                     Canada

                     Brazil
                                                                                     00

                                                                                                              00
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                                                   ,

                                                                                    40

                                                                                                             60
                                                                       30

                                                                                                50
                                                            20
                                                10

                                                                      NUMBER OF APPLICATIONS
16                                                                                         COMPUMARK CHINA TR ADEMARK REPORT 2018

TOP CHINESE APPLICANTS –
FOREIGN TRADEMARK APPLICATIONS IN 2016

                                Looking at all trademark applications              Some well known Chinese brands do
                                filed by Chinese applicants outside                not appear in the list as their trademarks
                                of mainland China, it is possible                  are owned by an offshore holding
                                to compile a list of the applicants                company: Internet giants Alibaba (722
                                that filed the largest number of                   foreign trademark applications in 2016)
                                foreign trademark applications.                    and Tencent (345 applications) both
                                                                                   use Cayman Islands based holding
                                In 2016, Huawei Technologies                       companies and would otherwise
                                (Telecommunications) was the                       feature in the Top Five entries.
                                leading Chinese brand in terms of
                                foreign trademark applications. Huawei
                                Technologies filed more than 1,800 foreign
                                trademark applications around the world,
                                more than 1,000 applications ahead of the
                                LeEco group of companies in second place.

             Applicant / Owner                                   2016    Applicant / Owner                                2016

             1    Huawei Technologies Ltd                        1,878   26   China Resources Snow Breweries Ltd           108
             2    Le Shi Holdings Ltd                              741   27   Zhejiang Supor Ltd                           106
             3    China Tobacco                                    366   28   Guangdong Alpha Animation and Culture Ltd    104
             4    Beijing Xiaoju Technology Ltd                    311   29   Qingdao Sentury Tire Ltd                     100
             5    Geely Holding Group Ltd                          267   30   Heilan Home Clothing Ltd                      97
             6    Nextev Ltd                                       223   31   Sichuan Haidilao Catering Ltd                 90
             7    Shandong Weifang Tainbow Chemical Ltd            222   32   Quanjian Science & Tech Development Ltd       88
             8    Baidu Online Network Technology Ltd              221   33   ZTE Corporation                               87
             9    Sanliuyidu (China) Ltd                           201   34   Gionee Communication Equipment Ltd            77
             10   Shenzhen Meixixi Catering Mananagement Ltd       198   35   Anhui Jianghuai Automobile Ltd                76
             11   Great Wall Motor Company Ltd                     191   36   Guilin GES Monk Fruit Corporation             74
             12   China Ocean Shipping (Group)                     179   37   Zhejiang Junbao Communication Tech Ltd        73
             13   SZ DJI Technology Ltd                            175   38   BYD Company Ltd                               72
             14   Beijing Qilin Hesheng Network Technology Ltd     155   39   Xiamen Meitu Network Technology Ltd           67
             15   Hangzhou Hikvision Digital Technology Ltd        150   40   Beijing Wangjiu Electronic Commerce Ltd       64
             16   Country Garden Estate Development Ltd            144   41   Guangdong Saiman Investment Ltd               62
             17   Saic Motor Corporation Ltd                       144   42   China National Heavy Duty Truck Group Ltd     58
             18   China International Captial Corporation Ltd      139   43   Beijing Wangjiu Electronic Commerce Ltd       57
             19   iCarbonX Ltd                                     139   44   CNNC Huayuan Titanium Dioxide Ltd             57
             20   Tianjin Lovol Heavy Industry Group Ltd           132   45   East Shineray Holdings Ltd                    56
             21   CRRC Corporation Ltd                             124   46   Postal Savings Bank of China                  55
             22   Beijing Jingdong 360 Du E-Commerce Ltd           121   47   Bestway Inflatables & Material Corp           54
             23   YIWU Prudential Network Technology Ltd           120   48   China National Petroleum Corp                 53
             24   Reach Best Technology Ltd                        118   49   UC Mobile Ltd                                 53
             25   Shanghai Shangmei Cosmetics Ltd                  109   50   China Unionpay Ltd                            52
COMPUMARK CHINA TR ADEMARK REPORT 2018   17
COMPUMARK CHINA TR ADEMARK REPORT 2018   19

2 : Country / Region
    Analysis
20                                                                                      COMPUMARK CHINA TR ADEMARK REPORT 2018

WHERE DID CHINESE APPLICANTS FILE
TRADEMARK APPLICATIONS IN 2017?

                                                                                 Figure 8 : Top filers of foreign
Looking at foreign trademark applications     1. USA
                                                                                 trademarks — 2017
filed by applicants from mainland China       2. Europe
in 2017, the global picture shows three key   3. C
                                                  ountries and registers in
markets in order of importance:                  close geographical proximity
                                                 to mainland China

                                                      Higher             Lower
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                     21

TOP
 WHERE
    FILERS
        DIDOF
            CHINESE
              FOREIGN
                    APPLICANTS
                      TRADEMARKSFILE
BYTRADEMARK
   OWNER COUNTRY/REGION
             APPLICATIONS IN 2017?

In 2017, applicants from the United States          If foreign trademark applications from
continued to file more foreign trademark            mainland China continue to grow at
applications outside their domestic                 their current rate, mainland China is on
market than applicants from other                   course to overtake the USA as the world’s
countries/regions around the world.                 leading source of foreign trademark
Applicants from mainland China are in               applications by 2020.
second place (up from 10th place in 2014),
with applicants from Hong Kong taking
third place.

Figure 9 : Top filers of foreign trademarks — 2017

US

Mainland China

Hong Kong

Germany

UK

Japan

France

Switzerland

South Korea

Italy

Spain

Canada

Australia

Netherlands

Taiwan
                                                                                                                       0
                                                                               0

                                                                                                              0
                                                                      0

                                                                                                     0
                                                                                       00
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                                 40

                                                       80
                                              60

                                                                          12
                      20

                                                                                                                  20
                                                                                                         18
                                                                 10

                                                                                                16
                                                                                    14

                      National           IR
22                                                                 COMPUMARK CHINA TR ADEMARK REPORT 2018

TOP FILERS OF FOREIGN TRADEMARKS
BY OWNER COUNTRY/REGION – TRENDS

         YEAR            TRADEMARKS

United          2010
                2011
                       169,710
                       197,845

States          2012
                2013
                       208,921
                       200,459
Applicants      2014   192,362
                2015   198,322
                2016   188,447
                2017   163,357

Mainland        2010
                2011
                       32,059
                       38,317

China           2012
                2013
                       42,951
                       48,526
Applicants      2014   54,353
                2015   67,238
                2016   94,622
                2017   119,126

Germany         2010
                2011
                       67,283
                       73,453
                2012   70,702
Applicants
                2013   68,374
                2014   66,790
                2015   67,395
                2016   74,076
                2017   54,488

                                      Figure 10 : Top filers of foreign trademarks

Hong            2010   32,597         by owner country/region
                2011   44,626

Kong            2012
                2013
                       60,267
                       73,805
Applicants      2014   77,793
                2015   74,918
                2016   63,232
                2017   76,319
COMPUMARK CHINA TR ADEMARK REPORT 2018                             23

                                         2010
                                         2011
                                                44,118
                                                50,163     United
                                         2012
                                         2013
                                                53,692
                                                55,243
                                                         Kingdom
                                         2014   54,683     Applicants
                                         2015   54,471
                                         2016   54,125
                                         2017   43,234

                                         2010
                                         2011
                                                8,138
                                                10,839    Taiwan
                                         2012   23,367
                                                           Applicants
                                         2013   20,582
                                         2014   21,176
                                         2015   22,966
                                         2016   16,527
                                         2017   10,416

                                         2010
                                         2011
                                                41,280
                                                49,003     France
                                         2012   47,978
                                                           Applicants
                                         2013   46,700
                                         2014   43,592
                                         2015   43,961
                                         2016   42,422
                                         2017   32,884

                                         2010
                                         2011
                                                8,138
                                                10,839      Korea
                                         2012   23,367
                                                           Applicants
                                         2013   20,582
                                         2014   21,176
                                         2015   22,966
                                         2016   16,966
                                         2017   10,416

                                         2010
                                         2011
                                                57,807
                                                65,205     Japan
                                         2012   80,574
                                                           Applicants
                                         2013   62,143
                                         2014   58,223
                                         2015   56,854
                                         2016   53,125
                                         2017   43,234
24                                                                                        COMPUMARK CHINA TR ADEMARK REPORT 2018

INTERNATIONAL REGISTRATIONS (WIPO) –
TOP APPLICANTS BY OWNER COUNTRY

                             The Madrid System – administered by the              In 2017, mainland China remained in
                             World Intellectual Property Organisation             fourth place (their 2016 position) among
                             (WIPO) in Geneva – allows brand owners               the leading filers of IR applications. While
                             to file a single trademark application               growth has been slower than for foreign
                             internationally covering over 110 countries.         trademark applications via national offices,
                             Although mainland China became party                 mainland China is likely to overtake France
                             to the Madrid Protocol in 1995, Chinese              and claim third place in 2018 among users
                             applicants have been reticent to use                 of the International system.
                             the International trademark system,
                             preferring to file foreign applications
                             directly with national registries.

            Figure 11 : TOP IR (WIPO) applicants by owner country — 2017

            8,000

            7,000

            6,000

            5,000

            4,000

            3,000

            2,000

            1,000
                        US

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COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                       25

INTERNATIONAL REGISTRATIONS (WIPO) –
MOST FREQUENTLY DESIGNATED COUNTRIES

Mainland China was the number one country designated by International
Registrations filed at WIPO in 2016, just ahead of the EUIPO register and the USA.
Over 22,500 IR applications designated mainland China in 2016, representing an
increase of 5% compared with 2015.

Figure 12: Most designated registers — international registrations 2016 vs 2015

25,000

20,000

15,000

10,000

5,000
             a

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                  2016        2015
COMPUMARK CHINA TR ADEMARK REPORT 2018   27

3 : Classification and
    Industry Analysis
28                                                                                                             COMPUMARK CHINA TR ADEMARK REPORT 2018

NICE CLASS DISTRIBUTION –
FOREIGN APPLICATIONS BY CHINESE APPLICANTS

Trademarks around the world are filed               In 2017, Class 9 was the most frequently used     Class 9 – Electronics/electrical equipment
using the Nice Classification system,               class for foreign trademark applications filed               (19.9% of all applications)
where all physical products are divided             by applicants from mainland China. Class 9        Class 25 – Clothing/fashion (9.6%)
into 34 goods classes (Nice Classes 1 to            includes electronics and electrical equipment.    Class 11 – Lighting, heating, cooking,
34), and all services are divided into 11           Chinese applicants filed nearly 30,000 foreign                 refrigerating apparatus (5.9%)
service classes (Nice Classes 35 to 45).            trademark applications in 2017 in Class 9.

By examining the most frequently used               The second most frequently used class
classes used by Chinese brands when                 was Class 25, which covers clothing,
filing foreign trademark applications,              footwear and headgear. The three most
it is possible to build a picture of the            frequently used classes were all from
most important types of products                    the goods classes for physical products:
being exported from mainland China.

          Figure 13 : Foreign Trademark applications by Chinese applicants in 2017
          — Nice Class Count

          35,000

          30,000

          25,000

          20,000

          15,000

          10,000

           5,000

                0
                     1    2    3    4       5   6     7     8    9   10   11    12   13   14   15    16   17   18   19    20   21   22
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                  29

                            CLASS 9                                CLASS 11                                CLASS 25

                       19.9%                                      9.6%                                    5.9%

                  23   24    25   26     27   28   29   30   31   32   33   34   35   36   37   38   39   40   41   42   43   44   45
30                                                                                                         COMPUMARK CHINA TR ADEMARK REPORT 2018

CHINESE TRADEMARKS – COMPARING FOREIGN
AND DOMESTIC APPLICATIONS

                                                 There is a clear distinction between which         Each of the eleven service classes (Nice
                                                 classes of trademarks from mainland                Classes 35 to 45) appeared at a lower rate on
                                                 China are being filed domestically                 foreign applications than they appeared on
                                                 versus globally. While foreign trademark           the Chinese domestic trademark register.
                                                 applications from mainland China mainly            Trademark applications covering
                                                 reflect physical products, the Chinese             agricultural products and food and drink
                                                 domestic register shows a higher proportion        (Classes 29 to 33) were also “exported” at
                                                 of service related brands.                         a significantly lower rate than they appear
                                                                                                    on the domestic register.
                                                 Class 9 (electronics and electrical items)
                                                 accounted for nearly 20% of all trademark
                                                 “exports” in 2017, but only 6% of Chinese
                                                 domestic trademark applications in the
                                                 same period.

     Figure 14 : Trademark applications by class. Chinese applicants, domestic vs foreign — 2017

     25%

     20%

     15%

     10%

     5%

     0%

            1   2     3   4    5   6   7     8     9   10   11   12   13   14   15   16   17   18   19   20   21   22   23   24   25

                    Domestic       Foreign
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                         31

                           26   27   28   29   30   31   32   33   34   35   36   37   38   39   40   41   42   43   44   45
32                                                                                  COMPUMARK CHINA TR ADEMARK REPORT 2018

INDUSTRY SECTOR DISTRIBUTION

The Nice Classification system for trademarks can be arranged
so that classes that relate to specific industry sectors can be
grouped together to allow analysis on an industry level.

Agriculture                    Business                           Chemicals    Clothing
                               Services
CLASSES                        CLASSES                            CLASSES      CLASSES

29 30 31 32 33 43              35 36                              124          14 18 22 23 24 25 26

Construction                   Health                             Household    Leisure &
                                                                  Equipment    Education
CLASSES                        CLASSES                            CLASSES      CLASSES

6 17 19 37 40                  3 5 10 44                          8 11 20 21   13 15 16 28 41

Research &                     Transport
Technology
CLASSES                        CLASSES

9 38 42 45                     7 12 39
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                          33

                        Applying this grouping to foreign trademark applications filed from mainland China,
                        the research and technology sector filed the most foreign trademark applications in
                        2017, followed by the clothing sector, and household equipment. While Class 9 was
                        used far more frequently than other classes, once the other industry related classes
                        are considered, the gap between the two leading industry sectors is relatively small.

                        Figure 15 : Foreign trademark applications by Chinese applicants
                        in 2017 — by industry sector

                        40,000

                        35,000

                        30,000

                        25,000

                        20,000

                        15,000

                        10,000

                        5,000
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34                                                                    COMPUMARK CHINA TR ADEMARK REPORT 2018

INDUSTRY SECTOR GROWTH – FOREIGN TRADEMARK
APPLICATIONS 2012 TO 2017

                  The research
                  and technology,
                  clothing, and
                  household
                  equipment sectors
                  have been growing
                  at 30% to 40%
                  per year.

                  The top three industry sectors for           Since 2013, foreign trademark applications
                  Chinese applicants filing overseas in 2017   from the research and technology, clothing,
                  have also been the three fastest growing     and household equipment sectors have been
                  industry sectors in recent years in terms    growing at 30% to 40% per year; in contrast
                  of trademark application numbers.            the construction sector and the chemicals
                                                               sector have seen very little growth since
                                                               2013 suggesting differences between
                                                               the ease of export and access to external
                                                               markets between industry sectors.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                   35

            Figure 16 : Chinese foreign trademark applications by industry sector 2012-2017

                                         40                                                      Research & Technology

                                         35                                                      Clothing

                                                                                                 Household Equipment
        NUMBER OF APPLICATIONS (000’S)

                                         30
                                                                                                 Leisure & Education
                                         25
                                                                                                 Transport
                                         20
                                                                                                 Health

                                         15                                                      Business Services

                                         10                                                      Agriculture

                                                                                                 Construction
                                          5
                                                                                                 Chemicals
                                          0
                                              2012   2013   2014   2015      2016         2017
36                                                                       COMPUMARK CHINA TR ADEMARK REPORT 2018

NICE CLASS DISTRIBUTION 2017 –
GOODS VERSUS SERVICES

                    Less than 20% of
                    the applications
                    were for services,
                    indicating that
                    mainland China’s
                    exports are mostly
                    physical goods.

                    Using the Nice Classification split between   On the Chinese domestic register,
                    physical goods (Class 1 to 34) and services   the proportion of applications for services
                    (Classes 35 to 45), it is possible to make    was just over 30% in 2017, lower than the
                    a comparison of the ratio between             global average. This suggests that the
                    trademark applications for goods and          Chinese economy is predominantly based
                    for services on trademark registers.          on physical goods rather than services.

                    Although service classes are less than        When Chinese brand owners filed foreign
                    25% of the overall number of classes          trademark applications in 2017, the difference
                    available (11 out of 45), around the world    was even stronger. Less than 20% of the
                    40% of all trademark applications             applications were for services, indicating that
                    in 2017 were for services.                    mainland China’s exports are mostly physical
                                                                  goods. Chinese service related brands are
                                                                  not yet exporting in significant numbers.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                37

                                                   Figure 17 : Goods vs services 2017

                40%                               60%                                32%                        68%

                              GLOBAL                                                         DOMESTIC

                        All trademark registers                                              Mainland China
                           around the world                                                trademark register

                                                  16%                                84%

                                                              FOREIGN

                                                        Foreign applications filed
                                                         by Chinese applicants

                  Goods

                  Services
COMPUMARK CHINA TR ADEMARK REPORT 2018   39

4 : Mainland China
    by Region
40                                                                                           COMPUMARK CHINA TR ADEMARK REPORT 2018

SOURCE OF FOREIGN TRADEMARK
APPLICATIONS BY MAINLAND CHINESE APPLICANTS

Guangdong Province (Shenzhen                 Zhejiang Province (Hangzhou and Ningbo)
and Guangzhou) dominates foreign             was the second largest source of foreign
applications by mainland Chinese             trademark applications in 2016, with 11.8%
applicants – nearly half of all foreign      of all foreign applications filed by Mainland
trademark applications in 2016 (46.7%)       Chinese applicants. Beijing Municipality was
were filed by applicants using an            third, with Shanghai Municipality fourth.
address in Guangdong Province.

Jiangsu            2,554              3.9%   Guangxi              269               0.4%

Fujian             2,479              3.8%   Shanxi               235               0.4%

Tianjin            1,375              2.1%   Yunnan               188               0.3%

Sichuan             937               1.4%   Shaanxi              155               0.2%

Hunan               800               1.2%   Heilongjiang         132               0.2%

Anhui               758               1.2%   Inner Mongolia       100               0.2%

Henan               758               1.2%   Guizhou               81               0.1%

Hebei               738               1.1%   Hainan                75               0.1%

Hubei               691               1.1%   Gansu                 67               0.1%

Jiangxi             569               0.9%   Tibet                 40               0.1%

Chongqing           496               0.8%   Xinjiang              36               0.1%

Jilin               325               0.5%   Ningxia               16               0.0%

Liaoning            316               0.5%   Qinghai               10               0.0%
COMPUMARK CHINA TR ADEMARK REPORT 2018                                  41

           Figure 18 : Top 5 sources of foreign
           trademark applications 2016

               1. GUANGDONG                   3. BEIJING    3
               30,360                         5,728
               46.7%                          8.8%              5
                2. ZHEJIANG                   4. SHANGHAI

                7,688                         4,033
                11.8%                         6.2%

                                              5. SHANDONG           4
                                              2,939
                                              4.5%                  2

                                                            1
COMPUMARK CHINA TR ADEMARK REPORT 2018   43

5 : Trademarks
    Around the World
44                                                                                                COMPUMARK CHINA TR ADEMARK REPORT 2018

ANNUAL GROWTH OF MAJOR TRADEMARK REGISTERS

Mainland China continued to be the fastest     The strong growth in the number of
growing major trademark register in 2017,      applications filed on the Chinese trademark
with growth of nearly 50% compared with        register in 2017 was partly driven by a
2016 filing numbers. The UK also saw signif-   significant reduction in the cost of filing
icant growth in 2017, due to the uncertainty   a domestic trademark application in
of “Brexit” for brand protection in the UK.    mainland China in April 2017.

Figure 19 : Annual growth in application numbers — major registers

Mainland China

United Kingdom

Japan

U.S. Federal

Mexico

Brazil

Turkey

Taiwan

EU trade marks

Germany

France

Argentina

South Korea                                                                                                           2016

India                                                                                                                 2017
                            %

                                       %

                                                        %

                                                                  %

                                                                            %

                                                                                      %

                                                                                             %
                                               0%
                             0

                                       0

                                                       10

                                                                 20

                                                                           30

                                                                                     40

                                                                                             50
                                    -1
                          -2
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                            45

This is in contrast to the Indian trademark register which saw a significant decline in filing
numbers over the same period, after the official fee was increased significantly in March 2017.

Figure 20 : Monthly filing volume — Mainland China and India

600,000

500,000

400,000

300,000

200,000

100,000

         0

                                       ‘17

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+74% Mainland China
MONTHLY FILING VOLUME

MONTHLY FILING VOLUME

-16% India

30,000

25,000

20,000

15,000

10,000

 5,000

     0
                                             ‘17

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                                             ‘17
                        ‘16

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46                                                                         COMPUMARK CHINA TR ADEMARK REPORT 2018

LARGEST REGISTERS BY ANNUAL FILING VOLUME

                   Mainland China
                   continues to dominate
                   world trademark
                   filing numbers, with
                   the Chinese register
                   accepting more
                   than 5 million new
                   applications in 2017.

                   Mainland China continues to dominate             Mainland China was the world’s largest
                   world trademark filing numbers, with             trademark register for new applications
                   the Chinese register accepting more than         in 2017, with more than 12 times as many
                   5 million new applications in 2017.              applications than the second placed US
                   The USA and India fill the next two positions,   register, and nearly 20 times as many
                   but neither of these registers are growing at    applications than India in third place.
                   the same rate as the Chinese register. Among
                   Asian registers, Japan and South Korea also
                   made the Top 10 in 2017.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                             47

     Figure 21 : Annual trademark applications — top registers by filing volume

                                    8

                                    7
NUMBER OF APPLICATIONS (MILLIONS)

                                    6

                                    5

                                    4

                                    3

                                    2

                                    1                                                                               Mainland China

                                                                                                                    Rest of the World
                                    0       2012         2013          2014              2015      2016   2017

                                        MAINLAND CHINA      BRAZIL             MEXICO           TURKEY       UK
                   2012                    1,581,533        109,102            101,306           91,216    36,723
                   2013                    1,785,355        161,496            104,330           87,910    46,317
                   2014                    2,090,957        154,157            109,039           91,861    51,037
                   2015                    2,629,170        156,860            118,681           93,293    54,282
                   2016                    3,603,746        161,912            126,034           92,541    61,636
                   2017                    5,270,801        177,005            138,403           99,668    75,010

                                              US            JAPAN               EUTM            FRANCE    GERMANY
                   2012                     300,060         106,931             81,953           81,947    44,700
                   2013                     309,986         103,601             85,401           84,307    44,900
                   2014                     327,879         111,355             92,349           87,207    49,540
                   2015                     358,951         130,882            105,280           91,575    69,035
                   2016                     377,406         147,679            113,670           88,329    68,910
                   2017                     425,791         173,331            118,762           90,299    71,561

                                             INDIA       SOUTH KOREA          ARGENTINA         TAIWAN
                   2012                     191,678         128,709              80,478          65,409
                   2013                     202,491        135,992               80,047          66,421
                   2014                     216,449         142,609              76,579          74,743
                   2015                     275,395         163,131              89,692          78,830
                   2016                     296,324         162,381             101,139          79,489
                   2017                     263,732         160,758             102,643          83,279
48                                                                                                          COMPUMARK CHINA TR ADEMARK REPORT 2018

Mainland China was the world’s largest trademark register for new applications in 2017,
with more than 12 times as many applications than the second placed US register, and
nearly 20 times as many applications than India in third place.

 Figure 22 : Top trademark registers — annual filing volume

 6,000,000

 5,000,000

 4,000,000

 3,000,000

 2,000,000

 1,000,000

          0
                  a

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      M

Even adjusting for population – mainland China is the world’s most populous country – the
Chinese register led the world in 2017, with more than 3,500 trademark applications filed
per one million people, ahead of the Taiwanese trademark register and South Korea:

Figure 23 : Top trademark registers 2017 — trademark applications per million population

                                                                                                                            = 400 Applications

MAINL AND CHINA                        TAIWAN                                  SOUTH KOREA

ARGENTINA                              FR ANCE                                 JAPAN

USA                                    TURKEY                                  UNITED KINGDOM

MEXICO                                 GERMANY                                 BRAZIL

EUTM                                   INDIA
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                         49

The one measure where mainland China                    trademark register led the world in 2017,
still lags behind other major trademark                 with GDP per trademark application of $US
registers is GDP per trademark application              47.8M. The USA was second at $US 45.6M
(in $US million). This is an indicator of               per trademark application. Mainland China
the relative economic value of each                     was in last place among major registers, with
application. On this measure, the German                GDP per trademark application of $US 2.2M.

Figure 24 : Top trademark registers 2017 — GDP per trademark application ($US thousand)

60,000

50,000

40,000

30,000

20,000

10,000
                                                           il

                                                                                              an
              y

                      A

                              UK

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SOURCE: International Monetary Fund April 2017 forecast http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weorept.aspx
COMPUMARK CHINA TR ADEMARK REPORT 2018   51

6 : Success Rates
52                                                                            COMPUMARK CHINA TR ADEMARK REPORT 2018

COMPUMARK SUCCESS INDEX –
SUCCESS RATE ACHIEVED BY CHINESE APPLICANTS

                   CompuMark™ uses a metric called the                 Chinese applicants filing trademark
                   CompuMark Success Index to measure                  applications on major trademark registers
                   the registration vs failure rate of                 in 2016 achieved a CompuMark Success
                   trademark applications.                             Index that was significantly higher than
                                                                       the register average in each major register.
                   The CompuMark Success Index indicates               In the EUIPO, Japanese and UK registers,
                   how many applications are registered for            Chinese applicants were two to three times
                   each unsuccessful application; the higher           more successful in having applications
                   the score, the better the success rate.             reach registration than the market average.
                   Applications to register a trademark can be
                   expensive investments for brand owners,             This success is likely to be due to the
                   so maximizing the chance of an application          distinctive and relatively unique nature of
                   leading to a registration is a valuable strategy.   the marks being applied for – particularly
                                                                       if they use Chinese words or Chinese
                                                                       characters – which means they are unlikely
                                                                       to conflict with existing rights already
                                                                       on the register. However, as more Chinese
                                                                       marks reach foreign registers the likelihood
                                                                       of conflict will undoubtedly increase,
                                                                       and success rates may fall as a result.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                     53

COMPUMARK SUCCESS INDEX

                    Figure 25 : CompuMark Success Index — 2016 applications

                    30

                    25

                    20

                    15

                    10

                     5

                     0
                                US             EU        Japan          Korea     UK           Australia

                              All applicants

                              Chinese applicants

                                  CompuMark Success Index = Registration Rate / Failure Rate
54                                                                        COMPUMARK CHINA TR ADEMARK REPORT 2018

TRADEMARK BEST PRACTICES –
FILING INTERNATIONALLY

                   Do your homework                                Other registers (e.g. EU, UK) will NOT stop
                   Global brand owners usually screen              other applicants from registering marks that
                   (simple online checks) and search potential     are too close – you need to constantly check
                   marks before they file applications to avoid    for possibly infringing applications and file
                   expensive mistakes.                             an opposition if necessary to stop them.
                                                                   The best way to do this is to have a trademark
                   They check for existing records on each         watch service – this will automatically tell you
                   register that might stop them using their       if someone tries to file an application that is
                   mark locally – existing marks that are          too similar to your brand.
                   too close will act as a block.
                                                                   Get local help
                   Understand the local rules                      Even before filing an application, try to find
                   Western registers have different rules.         a law firm in each country who can help you
                   The USA has special requirements regarding      if you have a problem. If a problem happens,
                   proof of use. These requirements are quite      often the deadline for responding is very
                   specific, and the United States Patent and      short and if you don’t know someone locally
                   Trademark Office has recently announced a       who can help, you might not have time.
                   pilot scheme to target fraudulent specimens
                   of use. The EU and UK Trademark Offices         Consider using the international
                   do not require proof of use, but a mark may     (WIPO – Madrid Protocol) system
                   be cancelled after five years if someone        Many international brand owners use
                   challenges it and you can’t prove that it is    the International (WIPO – Madrid Protocol)
                   in commercial use.                              system. The Madrid Protocol International
                                                                   system has a number of very important
                   Some registers will reject an application       advantages:
                   if it is too close to existing marks on the
                   register (e.g. USA); other registers will not   • V ery cost effective – no law firm fees
                   check for similar records and rely on other         for filing
                   owners to file an opposition. It is important   • S imple administration – one form
                   to be aware of deadlines for responding to          can cover over 100 countries
                   examination reports and oppositions.            • T he international system is quick as it
                                                                       requires countries to meet rules about
                   Protect your brand                                  examination times; if an application is
                   Some registers (e.g. USA) will stop other           not examined quickly it can become
                   applicants from registering marks that are          registered automatically.
                   too close to your brand.
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                            55

                                While filing through the Madrid Protocol international system has a number
                                  of advantages, less than 3% of foreign trademark applications filed by
                                                   Chinese applicants were filed via WIPO.

                                                               WIPO-IR

                                                          3,563

                                                              NATIONAL

                                                        115,469

                                  Figure 26 : Foreign trademark applications filed by Chinese applicants — 2017
COMPUMARK CHINA TR ADEMARK REPORT 2018   57

7 : Best Practices From
    Mainland China
58                                                                                                           COMPUMARK CHINA TR ADEMARK REPORT 2018

BEST PRACTICES FROM MAINLAND CHINA

                Haifeng Qian                          Hui Huang                    Jianping Li                            Bing Zhu

To better understand how Chinese brand owners approach filing foreign trademark applications and managing a global portfolio,
CompuMark™ spoke with Mr. Haifeng Qian, General Counsel & Director at Beiqi Foton Motor Co. Ltd., Mr. Hui Huang, Senior Partner
and Ms. Jianping Li, Trademark Consultant at Wanhuida Peksung IP Group, and Mr. Bing Zhu, General Manager (Legal Department)
at China National Cereals, Oils and Foodstuffs Corporation (COFCO).

How do you decide in which                         How do you advise on strategies for                • The name and address of the applicant
jurisdictions to protect your brands?              filing trademarks overseas?                            should be consistent or else its own prior
                                                                                                          registration or application may cited
COFCO: We will select target overseas              WANHUIDA PEKSUNG: We recommend                         as an obstacle to a later application,
countries/regions based on our strategic           that trademark applicants consider                     incurring unnecessary expenditure to
operation plan and the local policies              the following:                                         reply to the refusal
relating to intellectual property rights                                                              • Take advantage of regional trademark
in these countries/regions. Generally,             • T he trademark requirements in the                 registration systems such as the EUTM,
in addition to the areas in which our                  countries where the products will                  the Madrid/IR system, OAPI and ARIPO
businesses operate, some other areas of                be exported, the classification and                in Africa to control the budget
strategic significance will also be selected.          specifications of the products per se,         • Carefully select the timing for registration
                                                       and the company’s competitive strength             and utilize prior rights if they exist.
BEIQI FOTON: In terms of trademark                     are all crucial in making a well-targeted          Familiarise yourself with the provisions
protection, we have always stressed that               registration plan                                  of international or regional treaties,
“trademark registration comes before               • Trademark registration should be obtained          agreements, laws and regulations,
product selling.” For a new brand, we                  locally before exporting the products              combine them with your own practice
will first of all list the countries to file the       to that country. Since the registration            and file your trademark application
trademark according to the product plan                requirements vary from country to country,         overseas without delay
and anticipated market demand proposed                 filing strategies may need to be adjusted to
by our business department, and then we                meet local requirements
will investigate the trademark’s availability      • A comprehensive plan should be developed
in the listed overseas countries to confirm            by considering the representation and
the risks of conflict. In this way, we will            language of the trademark, the goods/
decide whether the name is available and               services, and the sequence of filing
in which countries we will register it.                in different countries and regions
                                                   • T he registration is advised to cover the
                                                       goods per se as well as the services
                                                       relating to the goods, which is effective
                                                       to protect against squatting
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                       59

How do you research trademark                   Some countries have low inspection                It is rather common practice in China to file
availability when filing outside China?         efficiency so that it may take seven to           a trademark in respect of as many similar
                                                eight years to get the certificate. If there      subgroups under one class in order to
BEIQI FOTON: Before 2013, we entrusted          is lawsuit or some other complexities,            maximize its scope of protection. The use
trademark agents and/or law firms within        the time of filling is more unpredictable.        of such practice in outbound trademark
each specific country to investigate            Thirdly, the inspection procedures vary           applications may risk the application being
trademark availability. However, since          from one country to another. In China,            rejected in some countries/regions (such
2014, we have used the SAEGIS® global           substantive review for trademark filling is       as Hong Kong, Japan and South Korea),
database to locate potential conflicts and      employed, while in other countries (EU for        where in the absence of a partial rejection
to clear new trademarks around the world,       example), formal review is adopted which          mechanism, the overlapping of or conflict
which has significantly shortened our           indicates that the trademark will be registered   between some goods or services may result
screening time and saved our costs.             three months after publication without any        in total refusal of the application.
                                                objections, and this means global trademark       In such circumstance, the applicant needs
What difference do you see when                 monitoring is particularly important.             to choose wisely and precisely which goods
filing overseas compared to in China?                                                             or services he chooses to seek for the
                                                WANHUIDA PEKSUNG: Apart from an array             protection of his trademark. Moreover,
BEIQI FOTON: When filling overseas, each        of differences in costs, examination periods      it would be advisable to run a rough check
country has its differences compared to         and grounds, there are also significant           on one’s own overseas trademark portfolio
China in terms of legal environment, cost       procedural differences. For instance, it is not   to avoid filings being obstructed by and
and efficiency. Firstly, the cost of overseas   unusual that evidence of use or a statement       refused on the basis of an own prior mark.
trademark filling can be relatively high.       of use is required to be filed in order to
Before a brand hits the market, its global      obtain registration, and the voluntary
trademark registration arrangements             submission of trademark use is mandatory
require a significant investment, and           even after the registration of trademark in
if there are subsequent objections or           many jurisdictions. Such practice requires
lawsuits, the cost can be higher. Secondly,     that the registration of a trademark is only
the time for trademark authorization in         sustained by voluntary and continuous filing
overseas countries is quite long.               of evidence of use or statement of use.
60                                                                                                     COMPUMARK CHINA TR ADEMARK REPORT 2018

What challenges do you see when filing           How do you select partners to                  business and its domestic ranking.
trademarks overseas?                             help with your overseas filings?               In addition, information about the agencies
                                                                                                can also be found in professional activities
COFCO: Countries in different geographic         BEIQI FOTON: Generally, we choose              and on professional media platforms.
locations often have differences in legal        our partners based on considerations           For complicated cases, we normally
systems and languages, and as a result,          of professionalism, experience,                choose well-known law firms with a good
we feel it is best to work with local            promptness of feedback and effectiveness       reputation. After the strict inspection of the
agencies, which has significant negative         of problem solving.                            law firm’s history, its international reputation
impact on efficiency as it is after all a kind                                                  and agent’s working experience, we will have
of indirect communication.                       COFCO: We generally select our partners        a careful preliminary communication with
                                                 based on the following factors:                the law firm on the case and then make the
Do you use the WIPO Madrid                                                                      best choice according to specific situations.
International Registration system?               1. T
                                                     heir clients, which can be a useful
If so, why? If not, why?                            indication of their capabilities
                                                    and reputation
BEIQI FOTON: We usually register                 2. Their position in industry rankings
international trademarks through Madrid              and the honors they have gained
system, because it’s very convenient.            3. T heir experience and size – experience
Under this system, one filling can be                and stability are very important
applied in more than 100 countries.
The Madrid system also has time and cost         WANHUIDA PEKSUNG: When selecting
benefits after registration with simplified      partners, we adhere to the principle of
processes for owner changes and renewal.         “reliable + efficient.” Commission fees will
                                                 be considered but it’s not the decisive
COFCO: We use the Madrid system in               factor. We care more about the partner’s
our overseas filing, but also file national      professionalism and credibility. More
applications. The decision on which              specifically, the partner selection can be
registration system to use is primarily          categorized into easy cases and complicated
made according to the actual needs of our        cases. For straightforward cases, we
business. National applications are the          will search for agencies which can offer
only option in countries which are not part      reasonable price, quick feedback and fair
of the Madrid system.                            quality. Overseas agencies can be found
                                                 from INTA membership list. We will review
                                                 the firm’s website to understand its date
                                                 of establishment, the scale and scope of
COMPUMARK CHINA TR ADEMARK REPORT 2018                                                       61

CONCLUSION

Mainland China has featured prominently        trademark registers around the world, how
on the radar of global brand owners            to build a network of partners around the
for a number of years, with its allure as      world, and how to protect and enforce their
the world’s largest single market and          brand once it is registered.
over 1.3 billion consumers each with
growing purchasing power and relatively        If recent trends continue, trademark
untapped access to global markets.             registers outside of mainland China –
                                               particularly in the US and Europe – are
While the primary focus within mainland        likely to see Chinese applicants playing a
China has been to build a strong domestic      significant role in their markets, with the
trademark register – with unrivalled success   very real possibility that these registers
in terms of filing numbers – Chinese brands    could look very different in terms of their
are now looking outward. Chinese brand         make-up and volume within the next four-
owners need to develop a strategy when         year cycle.
building a global brand, including how to
overcome the challenges posed by different
62                                                                                      COMPUMARK CHINA TR ADEMARK REPORT 2018

COMPUMARK – HELPING BRAND OWNERS GO GLOBAL

                                CompuMark™, a business unit of                   We provide the entire clearance and
                                Clarivate Analytics, enables trademark           protection process – with the added
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                                We are devoted to helping IP professionals       yourself; and the analyst-driven Full
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                                global, digital landscape.

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COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                 63

Trademark Screening                           Full Availability Search                         Custom & Managed Solutions
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COMPUMARK CHINA TR ADEMARK REPORT 2018                                                                                                                           65

ABOUT COMPUMARK                                        ABOUT CLARIVATE ANALYTICS                               AMERICAS
CompuMark ™ is the industry leader                     Clarivate Analytics is the global leader                Main office (USA) : +1 (800) 692 8833
in trademark research and protection                   in providing trusted insights and analytics             compumark.us@clarivate.com
solutions. We enable trademark and brand               to accelerate the pace of innovation.
professionals worldwide to launch, expand              Building on a heritage going back more                  CANADA
and protect strong brands through the                  than a century and a half, we have built                +1 (800) 561 6240
highest quality global content; expert                 some of the most trusted brands across                  compumark.ca@clarivate.com
analysis; superior trademark screening,                the innovation lifecycle, including
search, and watch tools; and best-in-class             CompuMark, Web of Science, Cortellis,                   EMEA
service. Key products include: SAEGIS®                 Derwent, MarkMonitor and Techstreet.                    Main office (Belgium) : + 32 2 200 89 98
Trademark Screening Tools; TM go 365 ™                 Today, Clarivate Analytics is a new                     compumark.be@clarivate.com
DIY Clearance Solution; Trademark Full                 and independent company on a bold
Search; Trademark Watching; Copyright                  entrepreneurial mission to help our clients             UK
Searches; and Custom Solutions.                        radically reduce the time from new ideas                +44 020 3564 5888
                                                       to life-changing innovations.                           compumark.uk@clarivate.com
To learn more about how CompuMark ™
can help with your trademark search                    For more information, please visit                      FRANCE
and protection needs, visit us at                      clarivate.com                                           +33 01 57 32 47 99
compumark.com                                                                                                  compumark.fr@clarivate.com

To contact CompuMark™ regarding the                                                                            ITALY
information in this report, or for general                                                                     +39 02 23 33 1221
enquiries, please visit                                                                                        compumark.it@clarivate.com
compumark.com/contact-us/
                                                                                                               GERMANY
                                                                                                               +49 69 153 253 300
                                                                                                               compumark.de@clarivate.com

                                                                                                               ASIA
                                                                                                               Japan: +81 03 4589-3101
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                                                                                                               CHINA
                                                                                                               +86 10-57601200
                                                                                                               info.china@clarivate.com
                                                                                                               clarivate.com.cn

                                                                                                               AUSTRALASIA
                                                                                                               +61 2 8587 7636
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