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What are the consequences of inconsistency between trademark registration and use?

Trademarks are a sharp weapon for enterprises to participate in business wars, but unregistered trademarks are like unsharpened weapons, because the object protected by my country’s Trademark Law is registered trademarks, and only registered trademarks enjoy exclusive rights to trademarks. Unregistered trademarks are always in a state of unprotected rights. For companies, using unregistered trademarks means being in a minefield with blunt instruments, and there are many hidden dangers.

First of all, companies that use unregistered trademarks bear the risk of infringing on the rights of others’ registered trademarks. Registered trademarks are protected nationwide, and using the same trademark previously registered by others in the same or similar category constitutes infringement. According to the latest statistics from the National Trademark Office, there are currently 2.76 million registered trademarks in my country, and the number of applications is growing at an annual rate of 10% to 15%. Trademark resources are relatively limited. As the number of trademark applications increases rapidly, the probability of infringement by using unregistered trademarks will become greater and greater. The administrative department for industry and commerce has the power to supervise trademarks. The penalties for trademark infringement generally include an order to immediately stop the infringement; the confiscation and destruction of infringing goods and tools specifically used to manufacture infringing goods and counterfeit registered trademarks; and the imposition of fines. If the infringement is suspected of being a crime, it will be transferred to the judicial authorities for investigation of criminal liability in accordance with the law. If the trademark owner files a lawsuit, he will also be held liable for compensation. It can be seen that using an unregistered trademark may push a company to the dock for infringement.

Secondly, the trademark user does not have exclusive rights to the unregistered trademark, which means that others can also use the trademark. Once a trademark becomes famous and the product is easy to sell, people will continue to counterfeit and imitate it, and the normal market order will be disrupted. In this case, the company will be unable to safeguard its rights because it does not have the exclusive right to use the trademark. It can only watch its trademark reputation being shared and the market being divided. Counterfeiters and imitators will trouble the company or even drown it, making it impossible for the company to continue. business.

Thirdly, using an unregistered trademark is always likely to be registered by others, which is also the most harmful to the enterprise. According to my country's Trademark Law, exclusive rights to a trademark can only be obtained by applying for registration. When applying for trademark registration, the first-to-file principle is adopted. That is, for an unregistered trademark, whoever applies for registration first will be granted exclusive rights to the trademark. who. No matter how long a company has used an unregistered trademark, once someone else applies for registration of the trademark, the exclusive rights to the trademark may belong to others. Trademark squatting is difficult for companies to guard against, and the price paid is also heavy. After a corporate trademark is squatted, changing the trademark name means that the previous efforts to shape the trademark have been wasted. If you don't change the trademark under the pressure of market bullying, you will have to pay a huge "purchase fee." When Siemens registered Hisense's trademark in Germany, it offered a sky-high price of tens of millions of euros, which shocked the world. Once a trademark is registered by a competitor, the company will lose the initiative, give others leverage, and even be forced to withdraw from the market.

You have also seen the consequences of not registering a trademark, so do not register it for convenience or cheapness. If you are found out, you will face huge compensation. Please consult the "Zhiyi.com National Trademark Registration Center" for details. ", for more information, please search "Zhiyi.com National Trademark Registration Center" and click on the first result to enter