China National Intellectual Property Administration ("CNIPA") recently distributed the Official Reply on the Application of Paragraph 3 Article 59 of the Trademark Law (the "Reply").

As specified in the Reply, the Request of the Shanghai Intellectual Property Administration for Instructions on the Application of Paragraph 3 Article 59 of the Trademark Law has been received. Upon study, the following reply is hereby given: Paragraph 3 Article 59 of the Trademark Law aims to balance the interests between the trademark registrant and the prior user of the trademark, and safeguard the rights and interest of the prior user who has some influence on the market but fails to register the trademark, without impairing the system in which trademark right is acquired upon registration. According to CNIPA, to make said provisions applicable, the prior user shall meet five conditions simultaneously, including "the trademark has already been put into use before the trademark registrant applies for registration of the said trademark".

(Source: China National Intellectual Property Administration)