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What are the benefits and purposes of trademark squatting?

1. What are the benefits and purposes of trademark squatting? For trademark squatting that adopts the principle of first-to-use as the basis for obtaining a trademark, the following purposes are generally used: One is speculative squatting. The first type of squatter generally only wants to trade with the original trademark user to obtain economic benefits; the second type is malicious squatting in the country. If the company's products are used first in the country of squatting, the squatter's The bank owner can also consider it illegal. Such squatters are generally competitors in the market where the products of the original trademark users are about to enter. For example, Siemens' squatting registration of Hisense's trademark falls into this category. Its general purpose is to prevent the company's products from entering the country of squatting registration. market, or through squatting, slowing down the speed of the trademark user's products entering the market of the country of squatting registration, or in this way compressing the market space of the original trademark user in the country of squatting registration. This type of squatting has the greatest impact on the person being squatted, because this type of squatting is intended to create a trade barrier in the form of trademark squatting, so it is also the most troublesome to deal with; there is another type of squatting. The act of noting is out of self-protection. For example, an agent of country A’s products in country B discovers that the trademark of the product he represents is not registered in country B. He negotiates with the owner of the product trademark in country A many times, but the other party fails. The trademark of the product is registered out of consideration for its own interests (such registration should be done in good faith, otherwise it is illegal); or after a company in country A acquires a company in country B, it discovers that B The trademark of Company A was not registered in Country A. In order to prevent speculators from rushing to register it, Company A registered the trademark first. Both of these are well-intentioned squatting, which does not cause much harm to the original trademark users and will be much easier to deal with. The meaning of the term "trademark squatting" has gone through two stages of development. In the first stage, the objects of trademark squatting are basically limited to unregistered trademarks. At this stage, the connotation of trademark squatting has been further expanded, that is, the act of applying for registration of a trademark or a well-known trademark already known to the public on non-similar goods or services is also a squatting registration. Furthermore, it can be believed that the act of applying for registration of other people’s innovative designs, design patents, company names and trade names, abbreviations of listed companies, and other prior rights as trademarks should also be regarded as trademark squatting.” However, due to squatting Different objects are involved, and the legal principles involved are also different: the former is the dispute between "first to apply" and "first to use" of trademarks, and the main issue involved is the principle of occurrence of trademark rights; the latter is mainly about "first to apply" and "first to use". The scope of protection of "prior trademark rights" and the protection of "other prior rights" also touch on the principle of occurrence of trademark rights. (1) The conflict between "first to apply" and "first to use" First to apply and first to use First, there are two procedural principles for confirming trademark rights. The substantive basis is the principle of registration and the principle of use. The so-called registration principle is to determine the ownership of trademark rights according to the order in which they apply for trademark registration. Whoever applies first will be granted exclusive rights to the trademark. Who, regardless of whether the trademark has been used. Application for registration is the only legal fact that forms the exclusive right of a trademark, so the most basic legal feature of the registration principle is the use principle corresponding to the registration principle. The ownership of a trademark is determined by the order of the trademark. Whoever uses the trademark first will enjoy the exclusive rights of the trademark. It is not necessary to apply for trademark registration. The registration principle and the use principle have their own advantages and disadvantages. The registration principle is used to obtain the exclusive rights of the trademark. In the management of trademarks, it is easy to identify disputes over the ownership of trademarks. The legal relationship of trademark rights is clear and stable, and it is easy to investigate and obtain evidence. Its disadvantages are that it is too rigid and lacks flexibility, and it cannot protect the prior right to use the trademark. Using the principle of use to obtain the exclusive right to use a trademark fully protects the prior use rights of the parties, is flexible and practical, and can avoid confusion among consumers due to the successive use of the same trademark by different users. However, it lacks stability and requires verification of the use of the trademark by the trademark user. It is difficult to obtain evidence, which is not conducive to trademark management. Most countries now adopt the registration principle to obtain and confirm the exclusive rights of trademarks, and only a few countries such as the United States adopt the use principle.

The registration principle only determines that the first person to apply for trademark registration has the exclusive right to trademark. The legal results of this system provide the possibility and inevitability for trademark squatting. (2) Limitation of the scope of trademark right protection Trademark right is a property right closely related to business entities. As a property right, trademark rights can bring certain economic benefits to its owners through use, licensing, transfer, etc. Trademark right is another kind of intangible property right. Compared with general tangible property rights, the property value contained in trademark rights is uncertain. Because the property value of a trademark mainly refers not to the cost of creating, using and maintaining a trademark, but to the earning power of the trademark. The profitability of a trademark depends on the market leadership of various indicators of the product marked by the trademark, the stability of the trademark's income, the basic situation of the trademark in market competition, the possibility of trademark extension, and the potential ability of the trademark to develop into the international market. There are many factors such as continued investment in trademarks and the strength of legal protection. These factors are highly uncertain. Even the addition of a powerful new competitor can immediately break the original balance of power in the market and affect the profitability of the trademark. To sum up, although trademark squatting has some advantages and can obtain certain economic benefits, the behavior of squatting is not supported, and Haihu may bear corresponding infringement liability if the registered trademark is determined to be squatting. , then no matter what category of trademark is registered, the final outcome will be the same.