Meaning
Statutory protection for prior rights prevents the bad faith registration of trademarks that are already in use by another party. The prc trademark law article 32 acts as a safeguard against applicants who seek to profit from the reputation of established but unregistered brands. It requires the original owner to prove that their mark has attained a certain level of influence before the filing date of the disputed registration.
Use Requirement
Documentation such as invoices, advertisements, and sales contracts must show that the brand was active in the market.
Prior Right
Legal standing is granted to the party who can demonstrate earlier use of the mark or ownership of a prior copyright or design patent. The prc trademark law article 32 ensures that first-to-file does not always override the interests of the first-to-use.
Malicious Intent
Evidence of a pre-existing relationship between the parties can support a claim that the registration was sought in bad faith. If the applicant was a former distributor or employee, the court is more likely to find a violation of the prc trademark law article 32. This provision targets the unfair practice of squatting on marks to demand a ransom from the rightful owner.
