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Entering the Chinese market can offer tremendous opportunities for Vietnamese businesses, but it also presents legal and procedural challenges—particularly when it comes to trademark registration. China operates a first-to-file trademark system and has strict procedural rules that differ significantly from those in Vietnam. Understanding these legal barriers is essential for Vietnamese companies seeking to protect their brand identity and business interests in China.
1. First-to-File Principle: The Race to Register
Unlike Vietnam, where use may sometimes play a role in establishing trademark rights, China follows a strict “first-to-file” system. This means that whoever files the trademark first—regardless of actual use or reputation—generally obtains exclusive rights. Vietnamese businesses that delay registration may find their marks already registered by local entities, a practice known as trademark squatting. Overcoming this issue often requires lengthy legal battles or costly buybacks.
2. Trademark Squatting and Bad Faith Filings
One of the most common issues foreign companies face in China is trademark squatting. Chinese individuals or companies often preemptively register foreign brands with the hope of selling them back or leveraging them commercially. While China’s Trademark Law now includes provisions to combat bad faith registrations, proving intent and obtaining cancellation still remains difficult, time-consuming, and not always successful. Proactive registration remains the most effective remedy.
3. Narrow Scope of Protection in Classification System
China’s trademark classification system is rigid. It follows the Nice Classification but adds subclasses within each class. Vietnamese businesses may register a mark in a general class but still remain unprotected in closely related subclasses unless specifically covered. For instance, registering in Class 25 (clothing) does not automatically protect against use in subclass 2505 (swimwear). This can leave gaps in protection if registration is not carefully planned.
4. Language and Transliteration Risks
Chinese consumers primarily engage with trademarks in Chinese characters. Foreign-language marks, especially those in Latin script, often lack market recognition and legal resilience unless translated or transliterated. However, careless translation can result in undesirable meanings or weak protection. Without proper Chinese equivalents, competitors or squatters may register versions that confuse or dilute the original mark. Vietnamese businesses should consider registering both their original and Chinese versions concurrently.
5. Procedural Formalities and Documentary Requirements
Trademark registration in China requires strict adherence to documentation, including notarized and legalized powers of attorney, proof of priority claims (if any), and properly executed applications. Mistakes in documentation or failure to meet formal deadlines can result in delays or rejections. Unlike Vietnam, China also conducts a substantive examination, and descriptive or generic elements may lead to partial refusals. Working with experienced local counsel or agents is essential to ensure compliance.
Proactive Strategy Equals Long-Term Brand Security
For Vietnamese businesses expanding into China, trademark registration should be treated as a first step, not an afterthought. Early and comprehensive registration, covering both the original and Chinese versions of the mark across relevant subclasses, can significantly reduce legal risk and preserve commercial value. A proactive trademark strategy is not merely a defensive tool—it is a foundation for growth, licensing, and competitive advantage in one of the world’s most complex markets.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Intellectual Property Services. If you need any advice, please contact us for further information or collaboration.
