During a business expansion phase, a company registered the same brand trademark in multiple classes for defensive purposes. After one registration designating Class 30 (convenience foods) had been registered for three years, a competitor's new application was refused by citation of this trademark, so the competitor filed a non-use cancellation (three consecutive years of non-use) application against it. During the defense period, the company submitted only the trademark registration certificate, a brand brochure, and a letter of intent for cooperation with no corresponding invoice. After examination, the CNIPA found that these did not constitute valid use and cancelled the registered trademark.
Key Issues
Issue 1: Why was all the defense material invalid?
- The trademark registration certificate is merely proof of the right and does not itself prove use;
- The brochure was self-printed, with no formation date and no evidence of distribution, and could not prove public use within the designated period;
- The letter of intent was never actually performed and lacked transaction vouchers such as invoices or logistics records, so it could not prove the trademark entered commercial circulation.
Issue 2: Can defensive registration serve as a legitimate reason for non-use?
No. The legitimate reasons recognized under Article 49 of the Trademark Law are limited to objective obstacles to use, such as force majeure and policy-based restrictions. "Registered purely for defense and never intended for use" is precisely the situation the non-use cancellation system is designed to clear out.
Issue 3: The company uses the brand extensively in other classes — can that save this registration?
No. Trademark use is examined item by item against the designated goods; evidence of use in Class 29 cannot maintain the registration in Class 30. Cross-class recognition only affects matters such as well-known trademark protection and is irrelevant to non-use cancellation examination.
Applicable Law
Article 49(2) of the Trademark Law: where a registered trademark has not been used for three consecutive years without a legitimate reason, any entity or individual may apply to the CNIPA for cancellation. The registrant must submit evidence of use or an explanation of legitimate reasons within two months of the notice; the burden of proof rests on the registrant.
Takeaways
- Defensive registrations carry maintenance costs: once registered, use the mark, or at least form use arrangements that can be credited — otherwise you leave a clearance channel open for competitors;
- Evidence awareness determines survival: the same facts of use lead to two different outcomes depending on whether there is an invoice;
- Regularly review idle trademarks: a trademark unused for three years should be activated, licensed, or voluntarily cancelled to avoid a passive cancellation on record;
- From the perspective of a party refused by citation: non-use cancellation is a low-cost clearance tool — the competitor in this case used it to remove the registration obstacle.
For the specific handling of the above matters, you can book a non-use cancellation defense at MyTMBee, with full assistance from a registered agency.