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What does malicious trademark squatting mean?

"Malicious registration" often occurs in rights fields that use the "first to apply" principle for authorization and can bring certain economic or spiritual benefits, so it mostly occurs in trademarks, domain names and trade names. Regarding "malicious registration of trademarks", Article 31 of the Trademark Law stipulates: "You shall not use unfair means to preemptively register a trademark that is already used by others and has a certain influence." Therefore, "malicious registration" refers to the applicant's behavior of using unreasonable or illegal methods to apply to the Trademark Office for registration of a trademark that has been used by others but has not yet been registered.

The social harm caused by malicious registration of trademarks is very obvious, mainly reflected in the following three aspects:

1. Undermining the normal order of market competition and seriously damaging the economic interests of normal operators; It hinders my country's transformation from a manufacturing economy to a brand economy. The essence of malicious trademark registration is the misappropriation of other people's goodwill or reputation, or the illegal occupation of public resources, which will inevitably undermine the normal order of market competition. In order to deal with the malicious registration of trademarks, companies either repurchase them at high prices, invest a lot of manpower and material resources to resolve lawsuits, or register a large number of so-called "defensive trademarks" in advance, resulting in an unwarranted waste of economic resources. The proliferation of malicious trademark registrations has affected the cultivation of trademark awareness by legitimate operators, hindering or even stifling the formation of well-known brands.

2. Spend a lot of trademark review and judicial resources, jeopardizing the order of trademark registration and use. Due to the widespread malicious registration of trademarks, including infringement of the rights of others, occupation of social public resources, and trademarks without real intentions, the already overburdened trademark examiners and judicial personnel have been worsened, seriously reducing the efficiency of trademark examination and litigation. . The number of trademark applications and holdings in my country has ranked first in the world for ten consecutive years, and is still growing at a rate of 10% per year. Due to the long trademark review period and many prior trademark obstacles, normal trademark applications have become difficult, thus affecting the establishment of normal trademark order.

3. Seriously harm the international image of my country’s intellectual property protection. For example, the Japanese Industrial Economy has publicly stated that malicious trademark squatting is rampant in my country, and the Italian Foreign Trade Commission made a special trip to China to crack down on counterfeit Italian brands.