Meaning
A statutory provision that defines the specific acts that constitute infringement of a registered trademark in China provides the foundation for enforcement and litigation. Under prc trademark law article 57, unauthorized use of an identical or similar trademark on identical or similar goods is prohibited if it creates confusion among consumers. This article also covers the sale of counterfeit goods and the manufacturing of forged representations of registered trademarks.
Prohibited Conduct
The provision details multiple categories of infringing actions, including changing a registered trademark without authorization and selling products bearing the modified mark. It also prohibits assisting others in committing trademark infringement, which includes providing warehousing, transport, or storage services for counterfeit goods.
Liability Standard
Direct infringement does not require proof of intent or negligence, making it a strict liability offense for manufacturers. However, sellers of infringing goods can escape liability for damages if they can prove they purchased the goods from a legitimate source and can identify the supplier. This defense is critical for retail distributors and trading companies.
It shifts the financial focus of the litigation back to the original manufacturer or the primary distributor, which protects downstream sellers who acted in good faith.
Administrative Penalty
Local market supervision departments use this provision to raid factories, confiscate infringing items, and impose heavy fines. Fines are calculated based on the illegal turnover, and can reach up to five times the illegal turnover for serious violations. These administrative measures provide a rapid remedy for trademark owners.
