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Can the industrial and commercial department continue to investigate after the trademark infringement has not been determined and the lawsuit has been withdrawn?

No more.

As long as the original manufacturer’s trademark owner withdraws the lawsuit and the two parties negotiate, the industrial and commercial department will not impose penalties. If the manufacturer does not pursue the case, the industrial and commercial department will not take care of it.

Article 60 of the "Trademark Law" involves any of the acts that infringe upon the exclusive right to use a registered trademark as listed in Article 57 of this Law and causes a dispute, it shall be resolved by the parties through negotiation; if the parties are unwilling to negotiate or the negotiation fails, , the trademark registrant or interested party may file a lawsuit in the People's Court, or request the industrial and commercial administrative department to handle the matter.