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    First-to-File vs First-to-Use: Why China Trademark Strategy Is Different

    Rajatpreet Singh ModiRajatpreet Singh Modi · Attorney, Global Trademark CompanyJanuary 26, 202614 min read

    Last updated: September 4, 2026

    First-to-File vs First-to-Use: Why China Trademark Strategy Is Different
    In this article

    China operates a first-to-file trademark system. The party that files first generally gets the rights, whoever used the brand first. That is the opposite of a first-to-use system like the United States, where rights grow out of commercial use.

    The difference matters to any business that manufactures in China, sells to China, or ships through China, and it changes what you should do this month rather than next year.

    Pro tip: you can check whether your mark is already taken in China before you commit to anything. Start with a free trademark check.

    First-to-File vs First-to-Use: The Core Difference

    Feature China (first-to-file) United States (first-to-use)
    Rights arise from Filing an application Commercial use of the mark
    Does prior use matter? Generally no Yes, it establishes priority
    Is registration required? Essential for enforcement Strengthens rights but is not required
    Common law rights Very limited Significant, unregistered marks are protected
    Squatting exposure High Lower, the prior user has priority
    Key statute Trademark Law of the PRC (2019 amendment) Lanham Act (15 U.S.C.)

    What This Means in Practice

    In the United States, if you have sold "ACME" widgets since 2015 and someone applies for "ACME" for widgets in 2026, you have priority through your prior use.

    In China, if you have sold "ACME" widgets worldwide since 2015 but never filed there, and someone files for "ACME" for widgets with CNIPA in 2026, they get the registration. They can then stop you using your own brand name in China.

    The Squatting Problem

    First-to-file has produced a professional squatting industry. Squatters watch foreign brands and file in China before the brand owner does.

    How Squatters Operate

    1. Brand monitoring. They track foreign filings through the USPTO, EUIPO, and other public registers.
    2. Preemptive filing. They file with CNIPA for marks not yet registered in China.
    3. Sale or license. They approach the brand owner and offer the registration back.
    4. Blocking. The squatter's registration can be used to block your application, file customs complaints against your goods, demand removal from e-commerce platforms, or sue you for infringement.

    The pattern we see most often is not an anonymous speculator. It is a former supplier, distributor, or agent who knew the brand first.

    What Recovery Involves

    Getting a squatted mark back is slower and more expensive than filing was, whichever route you take:

    Recovery route What it involves Typical timeline
    Buying it from the squatter Negotiation, no fixed price, and it rewards the behavior Negotiation dependent
    Opposition, if still in the publication window Evidence and argument at CNIPA 12 to 18 months
    Non-use cancellation Available once the mark has been registered for 3 years without use 12 to 24 months
    Invalidation on bad faith Articles 4, 15, or 32, with an evidence record 18 to 36 months
    Court litigation Civil proceedings, usually alongside one of the above 24 to 48 months

    Filing first avoids all of it. The CNIPA official fee is about CNY 270 per class for an online filing covering up to ten items, which is among the lowest official fees of any major office. For the all-in cost including our fees, see pricing or the China trademark service page.

    How Fast Can You File?

    This is the question we get from brands whose factory has just asked about trademarks, and the answer is short: filing is a matter of days, not months.

    What secures your position is the filing date, not the registration date. Once we have three things, the application can go in:

    1. The mark, in the exact form you use it, including the logo file if you are filing one
    2. The list of goods or services, mapped to CNIPA sub-classes
    3. The applicant's name, address, and entity details, matching your company records

    The classification step is the one that takes thought, because China divides each Nice class into sub-classes and protection is granted sub-class by sub-class. Our class assistant helps you map a catalog, and our how it works page sets out the steps from instruction to filing.

    After filing, CNIPA examines the application, publishes it if accepted, and third parties have three months from publication to oppose. Those stages take time, but your priority runs from the day you filed.

    Preemptive Filing Strategy

    The best defense against squatting is filing before the squatter does.

    When to File

    File in China as soon as any of these is true:

    • you manufacture in China, even if everything is exported
    • you sell, or plan to sell, in the Chinese market
    • you sell on e-commerce platforms that Chinese consumers can reach
    • your brand has international visibility through a website, social media, or trade shows
    • you have Chinese suppliers, distributors, or partners who know the brand
    • you are in a category squatters target: fashion, technology, food and beverage, cosmetics

    What to File

    1. Your primary mark in Latin characters
    2. Chinese character versions, which matter more than most owners expect:

    - Transliteration, a phonetic Chinese equivalent

    - Translation, a meaning-based equivalent

    - Hybrid, combining sound and meaning

    1. Logo or device marks, if your branding carries a distinctive device
    2. The sub-classes that cover what you sell, current and planned
    3. Adjacent sub-classes where a squatter would plausibly file

    More on choosing Chinese character marks is in our China trademark registration guide and the China country guide.

    How Broadly to File

    Business stage Sensible coverage
    Pre-entry planning Core sub-classes in the key Nice classes
    Active market entry Expand to related sub-classes
    Established presence Full defensive coverage across relevant classes
    Major brand Multi-class defensive strategy plus monitoring

    Bad Faith Provisions Under the 2019 Amendment

    The 2019 amendment to China's Trademark Law added real anti-squatting tools.

    Article 4: Bad Faith Filing Without Intent to Use

    *"Applications for trademark registration made in bad faith that are not intended for use shall be refused."*

    This is the most significant change in recent years. It targets:

    • Professional squatters filing hundreds of marks with no matching business
    • Speculative filers registering marks in the hope of selling them
    • Hoarding with no intention to use

    How Article 4 Is Applied

    Evidence of bad faith includes:

    • large numbers of applications across many classes with no corresponding business activity
    • targeting well-known foreign brands that are not yet registered in China
    • a pattern of registering and reselling marks
    • no genuine business matching the registered goods or services

    Article 15: Agent and Representative Bad Faith

    Protects you against trademark agents, distributors, or business partners who register your mark in their own name without authority. This is the article that most often applies to the former-supplier scenario.

    Article 32: Prior Use With Certain Influence

    Gives limited protection where a foreign mark was used and gained "certain influence" in China before the squatter filed. It requires evidence of use in China, consumer recognition in China, and the squatter's knowledge of your mark. Use abroad on its own rarely carries it.

    Strategic Recommendations

    If You Are Not Yet in China

    1. File now. Basic coverage today beats perfect coverage next year.
    2. Include Chinese character marks. They carry the highest squatting exposure.
    3. Search the register first. Our guide to the CNIPA database shows how, and it tells you whether a squatter has already filed.
    4. Budget for multi-class filing. Per-class official fees in China are low, so breadth is affordable.
    5. Set up trademark monitoring so a new squatting attempt reaches you inside the opposition window.

    If a Squatter Has Already Filed

    1. Establish the status. Is the mark registered, pending, or published for opposition?
    2. Oppose while the window is open. Opposition is usually the most cost-effective route, and the CNIPA opposition fee is CNY 500.
    3. Consider non-use cancellation once the squatter's registration is 3 years old with no genuine use.
    4. Pursue invalidation under Article 4, 15, or 32 where the bad faith evidence is there.
    5. Negotiate if speed matters more than principle, with clear eyes about the precedent it sets.
    6. File your own applications in the sub-classes that are still clear.

    If You Only Manufacture in China

    Export-only production still needs cover:

    • register in the classes relevant to manufacturing, so production cannot be interfered with
    • register in export-relevant classes, so goods are not held at customs on a squatter's complaint
    • put IP clauses in supplier contracts
    • monitor for filings by current and former manufacturing partners

    How We Help

    Our China trademark service covers:

    • Pre-entry strategy, a filing plan built before you enter the market
    • Anti-squatting assessment, including what to do about registrations already on file
    • Chinese character mark development, transliteration and translation
    • Sub-class selection for meaningful rather than nominal coverage
    • Trademark monitoring for new filings against your brand
    • Enforcement support: opposition, invalidation, and customs recordal

    Getting Started

    Check your mark's current status in China with a free trademark check, then let our team build the filing plan with you through our China trademark service.

    *This guide reflects the Trademark Law of the PRC as amended in 2019, which remains the law in force. A revised draft Trademark Law was under consideration by the State Council in March 2026; until any new text is promulgated, the 2019 amendment governs. Practice changes, so take advice on your own facts.*

    Sources

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    Frequently Asked Questions

    What does first-to-file mean for trademarks in China?

    Rights generally belong to the first person or company to file an application with CNIPA, regardless of who used the mark first. In a first-to-use system such as the United States, prior commercial use establishes priority instead.

    Can I get back a trademark that was squatted in China?

    Often, yes: by opposition during the publication window, non-use cancellation after three years of non-use, invalidation for bad faith under Articles 4, 15, or 32, or negotiation. Each route takes time and evidence, which is why filing first is so much cheaper.

    How much does it cost to file in China?

    The CNIPA official fee is about CNY 270 per class for an online filing covering up to ten items in that class. Professional fees are separate. See our pricing page for the all-in figure.

    When should I file a trademark in China?

    As early as you can, ideally before your brand has a public presence. If you manufacture in China, sell to Chinese consumers, use Chinese suppliers, or have international visibility, the answer is now.

    Do I need a Chinese name for my trademark?

    It is not legally required, but it is strategically close to essential. Chinese consumers coin informal Chinese names for foreign brands. If you do not register a Chinese character version, someone else can.

    What changed with the 2019 amendment?

    Article 4 was amended so that applications filed in bad faith without a genuine intention to use can be refused outright. Before that there was no direct provision to refuse an application purely for lack of intent to use.

    How does China compare with other first-to-file countries?

    Most of Europe, Japan, and Korea are also first-to-file. China stands out for the sheer volume of applications it handles, for sub-class granularity that has no real equivalent elsewhere, and for the prevalence of squatting that follows from its role in global manufacturing and e-commerce.

    Ready to get started?

    Our trademark specialists can help you with every step of the process.

    Rajatpreet Singh Modi

    Rajatpreet Singh Modi

    Founder & International Trademark Attorney

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