Trademarks protect trademark registrants by ensuring that they have the exclusive right to mark goods or services or license others to use them for compensation. The term of protection is ten years from the date of the announcement of trademark registration, but after the expiration, the trademark can be extended indefinitely by paying extra.

The renewal fee is 2000 yuan stipulated by the state (beyond the validity period but within 6 months plus 500 yuan extension fee) plus a certain agency fee, and the renewal fee shall be handled within the prescribed renewal period. Trademark protection is generally investigated by the local industrial and commercial bureau. If negotiation fails, it shall be executed by the court. In most systems, the court has the right to stop trademark infringement.

Broadly speaking, trademarks reward trademark registrants to gain recognition and economic benefits, thus promoting the positive and enterprising spirit of the world. Trademark protection can also prevent unfair competitors, such as counterfeiters, from using similar distinctive signs to promote inferior or different products or services.

This system enables skilled and enterprising people to produce and sell goods and services under as fair a condition as possible, thus promoting the development of international trade.