The Chinese market is huge and evolving, so registering your trademark in the registers of the Trademark Office of the State Administration of Industry and Commerce of the People's Republic of China (SAIC) offers many advantages.
Since the TRIPs Agreement came into force, the legislation on registration and protection of trademarks in China has become increasingly similar to that in Europe. Nevertheless, the process was gradual and not yet complete, as the TRIPs Agreement only provided basic rules that could be implemented by states, dissolving the agreement in the long term according to their legal situation. Companies that do not promptly register their trademark in China may face many problems when attempting to combat counterfeiting of their products in order to obtain trademark protection in China.
If you fail to register on time, there is a big risk that your brand has already been “copied” by a local company and registered in China before you begin expanding into the Chinese market.
In fact, unlike courts in Europe and the United States, Chinese courts can completely reject the common global practice of granting protection to unregistered trademarks of well-known companies. For example, in 1996, a Chinese clothing company registered a graphic of a horse that was identical to Ferrari's. The Chinese trademark office rejected Ferrari's objection to the registration on the grounds that the Chinese company had applied for the graphic to be registered first (first-to-file principle). Ferrari appealed the decision, arguing that the symbol was recognizable throughout the world, including China, as a symbol of the Ferrari brand. After an 11-year trial, the First Intermediate Court in Beijing ruled in 2007 that Ferrari's horse graphics were not a famous trademark among Chinese consumers and did not deserve legal protection, but the name "Ferrari" was.
In the near future, the situation may change due to the development of Chinese technology and trade, causing Chinese companies, as well as European and American companies, to be interested in trademark protection, so competition may become even fiercer.
Taking into account the fact that the mere use of the trademark without registration is legally irrelevant, you should act before starting your commercial activity. This is also important because the effect of legal protection in China comes into effect at the time of registration, not at the time of application, and the normal time to obtain registration is approximately 2 to 4 years.