3D illustration of two rubber stamps with the word trademark and the symbol TM over brown paper background. Trade-mark Registration Concept
Trademark squatting, or bad faith Trademark filing, is essentially when a third-party files and registers a Trademark merely to sell it for a profit later to someone who actually needs it and/or wants to use it. The original applicant then faces enormous challenges in registering in that country since the squatting party controls the intellectual property (IP) rights to that Trademark.
Trademark squatting is a serious issue in markets like China, as a result of the differences in Trademark laws in different countries. As opposed to Australia, China has a first-to-file Trademark system, which means that the first party to apply and file for a Trademark obtains the rights to that Trademark indisputably. The squatting third-party can even go one step further in enforcing their rights to the Trademark and potentially sue the original applicant in the foreign jurisdiction for infringement.
In this blog, we will discuss ways in which to combat Trademark squatting, the Chinese government’s efforts in tackling this continuing headache for existing foreign businesses, and a recent famous case the ruled in the original applicant’s favour.
How Can Business Owners Prevent This?
The best way to prevent any of the abovementioned squatting issues is to file in all relevant and potential business growth jurisdictions as soon as possible, particular in first-to-file countries. The first point of call would be to file your Trademark in your own home country, i.e. in Australia all Trademark registrations are managed and enforced by the government body: IP Australia. Then, you would apply for Trademark registration in your key countries of international business growth and future business expansion.
Trademark law is the best area of IP law that offers protection, strategy, and leverage. Here at IP Partnership Lawyers, our team of trademarking lawyers are experts in Trademark registrations in both Australia and internationally, and we also assist clients with Trademark oppositions and the removal of Trademarks. Please see contact us to discuss further.
Read more – Trademark Squatting
