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November 14, 2017

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Rules counter to trademark law revoked

A working body of China’s top legislature has ordered the annulment of several local trademark-related ordinances that contradict the country’s trademark law.

The Legislative Affairs Commission of the National People’s Congress Standing Committee yesterday said it had conducted a review of local ordinances on “renowned trademarks” which allow local governments to organize appraisals and grant such titles to certain brands, thus enabling companies to use them for marketing.

Such practices run counter to the spirit of the trademark law, which only protects holders of “well-known trademarks” against violations in disputes but bans using the determination of “well-known trademarks” for promotion and other commercial purposes.

At the beginning, local “renowned trademark” ordinances ­— meant to encourage companies to increase their awareness of brand-building and improve their products’ quality — had played a positive role, said the Legislative Affairs Commission.

“However, they are now outdated, as the selective support from the government may cause discrimination and result in unfair competition in the market,” it said.

Such practices did not conform to the requirements for deepening reforms aimed at streamlining government administration and delegate powers, said the commission.

It added that it had ordered a comprehensive overhaul of the problem and informed local legislatures and the Legislative Affairs Office of the State Council.

The commission said the review of local statutes and normative documents was part of the legislature’s work to exercise the power of oversight granted by the constitution.




 

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