Place names of administrative divisions at or above the county level, and foreign place names known to the public, may not in principle be registered or used as trademarks; however, this does not apply where the place name has another meaning or forms part of a collective trademark or certification trademark. Place-name trademarks already registered remain valid.
What the Statute Says
Paragraph 2 of Article 10 of the Trademark Law establishes the prohibition on place names. Its legislative purpose is to prevent place names from being monopolized by individual operators, which would impede competitors' legitimate indication of the origin of their goods, and to prevent the public from being misled as to origin.
Which Place Names Are Restricted
First, place names of Chinese administrative divisions at or above the county level, including the names of provinces, cities, and counties, as well as their abbreviations and historical names that correspond to current divisions; second, foreign place names known to the public. Place names below the county level (towns, villages, names of mountains and rivers, and the like) are not covered by this prohibition, but may still be rejected for lack of distinctiveness or for misleading as to origin.
Exceptions
A place name that has "another meaning" stronger than its meaning as a place name may be registered—for example, "长安" (Chang'an) or "凤凰" (Phoenix), which have independent lexical meanings. A place name forming part of a collective trademark or certification trademark may be registered—this is precisely the conventional form of geographical-indication trademarks, such as certification trademarks attesting to origin. Place-name trademarks registered before the Trademark Law took effect remain valid.
Practical Suggestions
Avoid place names at or above the county level when naming. For products whose selling point is their origin, consider having an industry association or similar body apply for a geographical-indication certification or collective trademark. For marks containing a place name below the county level, assess the descriptiveness of the origin indication and the risk of misleading before filing.
If you encounter a similar situation, it is advisable to first consult a record-filed agent on MyTMBee to assess whether a trademark registration assessment is needed before deciding on the next step.