Some time ago, Jordan Sports once again passed the preliminary review of the China Securities Regulatory Commission and was preparing to be listed on the Shanghai Stock Exchange.

In fact, as early as November 2011, the China Securities Regulatory Commission approved Jordan Sports’ listing application for the first time. Qiaodan Sports is expected to become the first A-share listed sporting goods company. However, on the eve of the successful listing, American flying star Michael Jordan sued Qiaodan Sports for infringing his name rights in the Qiaodan Sports trademark. The trademark dispute of Qiaodan Sports caused Qiaodan Sports to stagnate.

The listing of a company is an excellent reflection of the company, but in reality, many companies planning to go public have very weak awareness of intellectual property protection. The trademark risks of listed companies are mainly divided into three categories:

1. The main trademark is not registered, or the same or similar trademark is registered by other categories of people.

At the beginning of the company's establishment, some companies mainly focused on product development and marketing, often neglecting trademark protection. Therefore, many listed companies are exposed to serious trademark risks. After others preemptively registered the trademark, the defendant faced the legal risk of infringement and demanded to stop the infringement and high compensation, which directly affected the company's listing operation.

2. The use of trademarks is confusing and there is no dispute prevention mechanism.

Many companies still have serious potential infringement risks, using other people's trademarks without knowing it. However, trademark ownership is unclear, leading to confusion about trademark ownership during equity changes, trademark transfers and authorization processes. Some trademarks of listed companies are owned by shareholders and even employees, which is the basis for future control of the company.

3. The efficiency of handling trademark disputes is low.

Many companies are facing disputes with the wrong attitude, trying to avoid or perfunctory, which directly leads to delays in the listing process. In the next seven years, Qiaodan Sports has been trying to go public, but due to the trademark dispute with Jordan, it failed, and its losses are self-evident. The biggest impact of trademark disputes is to damage users' brand awareness of the company, thereby reducing loyalty.

In view of the above problems existing in companies planning to be listed and existing listed companies, Bajie Intellectual Property Trademark Network puts forward the following suggestions:

1. Register business-related trademarks in a timely manner

Trademark registration takes a long time and is uncertain. Registration applications must be submitted as early as possible and on time. In China, it takes approximately one year to apply for trademark registration and preliminary approval by the Trademark Office. If a third party challenges the registration application, the procedure will be extended to at least 2 or 3 years and beyond 10 years. Enterprises planning to go public should apply for registration of all trademarks related to their operations at least one and a half years before filing an application for listing. If it has been registered by others, it can be canceled on the grounds of objection, invalidity or non-use within three years. Considering the uncertainty of the trademark application registration period and trademark application process, companies planning to be listed may consider acquiring trademark rights through purchase to meet the conditions for stock issuance and listing.

2. Standardize the use of trademarks and establish a trademark supervision system

If the main trademark is controlled by shareholders, a long-term or even uncertain trademark use license contract should be signed. It is best to completely solve the hidden dangers of trademarks of listed companies through trademark transfer and ensure that shareholders will not force listed companies to use trademark rights. The Trademark Office regularly announces preliminary approved trademarks. Through trademark monitoring, we can find applied trademarks that are identical or similar to our own trademarks. Therefore, trademark infringement is nipped in the bud.

3. For trademark disputes that have occurred, you should consult a professional organization or lawyer in a timely manner.

Actively resolve disputes and eliminate the impact through multiple channels to avoid having a major impact on the development of the enterprise. The company planning to be listed should designate a dedicated person to take charge and handle it effectively. During the listing process, disputes must be effectively handled, actively resolved through multiple channels, and hidden dangers eliminated.