A deceptive sign is one that is deceptive and likely to mislead the public about the quality or other characteristics of goods, or about their origin. Under Article 10(1)(7) of the Trademark Law, such signs may not be used as trademarks. This is an absolutely prohibited situation: once established, the sign can neither be registered nor used in business.
The Difference Between "May Not Be Used" and "May Not Be Registered"
Article 10 is phrased as "may not be used as a trademark," while Article 11 is phrased as "may not be registered as a trademark." A difference of a few characters produces entirely different consequences:
- Article 10 is an absolute prohibition: the sign itself may not be used as a trademark, and there is no exception channel of "registration after acquiring distinctive features through use";
- Article 11 is a threshold that can be crossed: by acquiring distinctiveness under Article 11(2), registration is still possible.
A sign falling under Article 10 is therefore not "temporarily unregistrable"—it simply may not be used at all.
Constitutive Elements and Common Types
Constitutive Elements
Establishing a deceptive sign requires two conditions:
- The sign itself is deceptive: the information conveyed by the sign is inconsistent with, or misleading about, the actual circumstances of the designated goods;
- It is likely to mislead the public: the object of the misapprehension is the quality or other characteristics of the goods, or their origin.
Two points require attention: first, subjective malice on the applicant's part is not a required element—it suffices that the sign is objectively misleading; second, an actual occurrence of misapprehension is not required—it is enough that misapprehension is "likely."
Common Types
- Exaggeration of quality: expressions describing quality grades or ingredient purity where the goods do not actually meet them;
- Misleading as to origin: the sign contains a geographical name or suggestion of one, but the goods do not come from that place, easily causing the public to form a wrong impression of origin;
- Misleading as to materials or ingredients: the sign points to a particular or scarce raw material that the goods do not contain or do not mainly contain;
- Misleading as to technical source or qualifications: the sign creates the impression that the goods come from a particular institution, possess a particular certification, or achieve a particular technical level.
Distinguishing from Puffery in Advertising
Exaggerated and laudatory expressions are common in advertising, but not all exaggeration falls within Article 10(1)(7). Three points distinguish them:
- Referential specificity: whether the sign points to specific characteristics or origin of the goods. General self-praise or emotional description, if it cannot lead the public to form a definite perception of specific characteristics, is usually a matter of insufficient distinctiveness rather than deceptiveness;
- Degree of misleading: whether it is "likely" to cause the public to form a wrong understanding. Where the relevant public, by ordinary cognition, recognizes it as rhetoric and does not take it literally, the misleading effect is weak;
- Truthfulness: whether the claim made by the sign departs from the actual condition of the goods. The clearer the departure, the higher the likelihood of being deemed deceptive.
The touchstone is whether the relevant public would be led to a false factual belief—not whether the wording is exaggerated.
Neighboring Provisions and Legal Consequences
Relationship with Neighboring Provisions
- With Article 16: where a trademark contains a geographical indication for goods but the goods do not originate from the region indicated by the sign, thereby misleading the public, registration shall be refused and use prohibited under Article 16—but registrations obtained in good faith remain valid. This is the special rule for origin-related misapprehension;
- With Article 10(1)(8): signs detrimental to socialist morality or customs, or having other adverse effects, constitute an independent situation; in practice a single sign may implicate both item (7) and item (8);
- With Article 11: if a sign is neither deceptive nor misleading but merely incapable of distinguishing source, it is a distinctiveness problem governed by Article 11.
Legal Consequences
- Examination stage: under Article 30, where an application does not conform to the provisions of this Law, CNIPA shall refuse the application and withhold publication;
- After registration: under Article 44(1), a registered trademark that violates Article 10 shall be declared invalid by CNIPA, and other entities or individuals may also request that it be declared invalid;
- Risks of use: Article 10 prohibits the act of use; even without applying for registration, using such a sign on product packaging, store names, or promotional materials may result in administrative penalties and platform enforcement actions.
Practical Points
At the naming and packaging copy stage, do a "fact check": every statement about quality, ingredients, origin, or qualifications in the sign and copy must be provable with materials. Whatever the evidence cannot support had better not be written. Expressions involving origin warrant particular caution—using a geographical suggestion for goods that do not come from that place is one of the situations most easily found deceptive.
The application of these concepts in practice varies in detail; before proceeding, you may consult a registered agent via MyTMBee for targeted analysis.