Originally published by Georgina Hey (AU).
There has been ongoing uncertainty over whether brand owners who manufacture branded goods in China, but do not sell those products in China, could infringe a Chinese trade mark registration held by a third party in that country.
A recent Supreme People’s Court (SPC) decision clarifies that applying a trade mark to goods in China for the purpose of export only does not constitute trade mark ‘use’ in China because the trade mark does not function as a badge of origin to Chinese consumers. This is good news for foreign brand owners using China as a manufacturing base, as they no longer need to be concerned that this manufacturing use can infringe a local trade mark registration.
In this update we outline the implications for Australian companies, and other foreign brand owners, using China as a manufacturing base.
Read the full Legal Update here.
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