Too many trademarks of Finnish companies have been hijacked in China. Quality brands attract brand hijackers who sniff out brands that may be entering the Chinese market and register the trademarks under their own names for profit. If China is part of your market entry plans for the next few years, Kaulo & Partners can check free of charge that your brand has not been hijacked and already registered in the name of a Chinese company.
Brand protection must be “weatherproof”, like dog coats. On November 19, 2021, the Finnish leading business magazines Talouselämä and Kauppalehti brought up a recent case of the Finnish dog wear manufacturer Pomppa Oy, whose trademark, previously registered in the European union, had been fraudulently registered in the name of a Chinese company, even though the company did not sell its products in the Chinese market.
There are many companies in China whose business model is to search Western brands to be registered as trademarks in China, with the aim of selling them back to their rightful owners at a “good price” when the opportunity arises. Many Finnish companies are also subject to trademark hijackings in China, such as Pomppa, who had to buy back its own brand to be able to continue manufacturing in China and legally exporting the products under the pomppa® brand name out of China.
"Up to hundreds of Finnish brands are registered in the name of Chinese companies," says Jani Kaulo in the article in Talouselämä. Trademarks are valuable assets, but in wrong hands an obstacle to trade like for Pomppa Oy. The Pomppa case was quite exceptional. The more common case is that a Finnish company cannot sell its products locally in the Chinese market, if the brand name is legally owned by a Chinese company.
Trademark hijacking is not a new phenomenon. For example, already in 2016, Yle – The Finnish Public Service Media Company – reported about the difficulties of the shoe designer Minna Parikka in China. In January 2020, Kauppalehti reported on the case of the Japanese company Muji. However, also the Finnish SME’s quality brands are of interest to hijackers, regardless of industry branch.
We will check for free whether your brand has been hijacked
The first step in protecting your brand in China is to check the current situation. As a special offer until December 2, 2021 we will check free of charge whether your brand has already been hijacked in China, i.e., registered in the name of a Chinese company.
We will make a search from the official Chinese trademark database with the help of our Chinese language expert. The database search will cover trademarks that are identical with your brand name or logo, and registrations that have already become public. However, the database does not show trademark applications filed during the last six months, so the search result is not fully real-time.
Contact us via the Contact Us form on our website with the message “Please check free of charge if my trademark has been hijacked in China” or send us an email to kp@kaulopartners.fi. Our campaign is valid until December 2, 2021.
Is China part of your market entry plans for the next 3−5 years? Let’s make the brand protection “hijacker durable”
If you plan to manufacture or sell your products in China in the next few years, or launch a new product at international trade fairs, register your trademark in China in the first place. A trademark registration is the cheapest and easiest way to secure your business on new markets and avoid hijacking.
If your trademark has already been hijacked in China, the situation may not be hopeless. Jani Kaulo of Kaulo & Partners has a long experience and reliable local networks to solve problems related to trademark hijacking in the Chinese market.
In China, you can apply for cancellation of the registration if the trademark has not been used for three years. Another way is to try to find out where the Chinese company has become aware of the brand, i.e., whether there is a clear connection that the Chinese company has acted in bad faith. Fraud can then be invoked: the mark has been intentionally stolen.
“It’s worth remembering the three-year rule: if your company has any intentions or interest in the Chinese market within the next 3−5 years, RIGHT NOW is the right time to take care of the trademark registrations in China,” says Jani Kaulo.
Need help in securing or localizing your brand in the Chinese market? Our experts have special expertise in this. Register your trademark before problems arise! Contact us:
Jani Kaulo
Managing Partner, Licensed Legal Counsel, EU Trademark and Design Attorney
jani.kaulo@kaulopartners.fi, +358 40 637 5442
Maria Puronvarsi
Partner, Licensed Legal Counsel, EU Trademark and Design Attorney
maria.puronvarsi@kaulopartners.fi, +358 40 669 0527