Guidance

China Intellectual Property newsletter (July 2026）

Updated 31 July 2026

This is an ad-hoc newsletter to inform UK stakeholders of recent developments in the Chinese IP environment. The content is collected from publicly available sources, where information is often available in Chinese only. Please feel free to forward this newsletter, and contact Leo.Zhuang@fcdo.gov.uk to be added to/removed from the distribution list. An ODT version is available on the embassy’s IP webpage.

1. Police and government

1.1 China’s Trade Mark Law overhauled, taking effect from 1 January 2027

On 26 June, the Standing Committee of the National People’s Congress adopted the fifth amendment to China’s Trade Mark Law (TML). This is the most significant overhaul in the TML’s 43 year history. The revised law modernises trade mark protection by expressly recognising internet-based use as valid use and introducing motion marks as a registrable trade mark category. Protection for well-known trade marks is also expanded. For the first time, unregistered well-known marks may receive cross-class protection in China, removing the previous requirement for a Chinese registration. The opposition period will be reduced from three months to two months and CNIPA will gain broader powers to initiate ex officio revocation proceedings, particularly where a mark has not been used for three consecutive years, has become generic, or is used in a misleading manner. In addition, the maximum administrative fine for abusive trade mark filings will increase from RMB 30,000 to RMB 100,000, signalling a tougher enforcement stance by the Chinese authorities. Read full text of the revised Trade Mark Law in Chinese

1.2 NCAC solicits comments on the draft amendments to the Copyright Law Implementing Regulations

On 13 July, China’s National Copyright Administration (NCAC) published the draft implementing regulations of the Copyright Law (CRL) for public consultation. The proposals mark the most significant update since the 2020 reforms, strengthening rules on copyright ownership, licensing, enforcement and digital rights. The draft gave a clearer definition of ‘audiovisual works’, a new category introduced in the CRL, which expressly include ‘films, television dramas, featurettes, documentaries, animation, web series, variety programmes.’ Other key changes include a presumption of ownership, recognition of copyright registration certificates as prima facie evidence, clearer rules on adapting works into audiovisual formats, and stronger protection for audiovisual and performer rights. The draft also introduces mandatory payment deadlines, requiring users operating under statutory licences to compensate rights holders through collective management organisations within three months of use. Read the full draft of the implementing regulations in Chinese

1.3 State Council approves the 15th Five-Year Plan for IP protection and utilisation

Approved on 20 July, the State Council highlighted the importance of strengthening the IP framework to support innovation-driven development and China’s broader modernisation objectives from 2026 to 2030. The revised plan called for accelerated efforts to address institutional shortcomings and an SPC judicial interpretation of relevant laws and regulations. It also stressed the importance of enhancing the high-quality creation of IP rights, deepening reforms relating to the distribution of benefits between interested parties (e.g. employer/employee, AI technology companies/IP right holders etc.), strengthening policy support and market services, and improving the commercialisation and practical application of IP assets. However, the full text of the plan has yet to be published. China’s IP sector has made significant progress during the 14th Five-Year Plan period. According to the World Intellectual Property Organization’s Global Innovation Index 2025, China rose to 10th place globally for the first time and was home to 24 of the world’s top 100 innovation clusters. Read more from the State Council’s announcement in Chinese

1.4 CNIPA gives guidance on the handling of administrative adjudication cases involving SEP disputes 

On 16 July, CNIPA published a notice confirming that the Fair, Reasonable and Non-Discriminatory (FRAND) principle should be considered in administrative adjudication proceedings involving standard essential patents (SEPs). Significantly, this appears to be the first time CNIPA has expressly stated that FRAND considerations, which have historically been developed and applied primarily through judicial decisions, should also govern SEP-related administrative proceedings. Referring to a previous judicial interpretation issued by the Supreme People’s Court (SPC), CNIPA stated that authorities should assess whether the parties fulfilled disclosure obligations, engaged in genuine licensing negotiations and proposed reasonable licensing terms. CNIPA further clarified that, where a patent owner has complied with FRAND obligations and the alleged infringer is clearly at fault during negotiations, administrative authorities may order the cessation of infringing activities. The notice confirms that the conduct of both parties during licence negotiations is a key factor in SEP administrative proceedings and in determining whether injunctive relief is appropriate. Read more from CNIPA on SEP guidance in Chinese

1.5 China seeks public feedback on draft amendment to E-commerce Law

On 4 July, the State Administration for Market Regulation (SAMR) and the Ministry of Commerce (MOFCOM) jointly released a draft amendment to China’s E-commerce Law. The draft would broaden the law’s scope beyond platforms and online merchants to clarify the rights and obligations of other participants in the platform economy such as platform workers (delivery drivers, streamers), consumers/users. It also strengthens oversight of platform companies’ use of data, algorithms, traffic and operating rules, and expands provisions on overseas activities that affect China’s domestic market or harm the rights of Chinese businesses and consumers. The draft introduces a four-tier penalty system, raising the maximum fixed fine from CNY2 million to CNY5 million and adds measures such as suspending user registration and network access. However, it does not revisit the IP-related amendments proposed in the 2021 draft, including changes to the notice-and-takedown regime and platform liability provisions. It is uncertain whether these amendments will be kept or dropped until the next round of consultation. Read full text of the draft E-commerce Law from SAMR in Chinese and a press release in English

1.6 Twelve major online platforms commit to eliminating pirated publications

On 16 July, twelve leading Chinese online platforms, including Taobao, JD.com, Pinduoduo and Douyin Mall, announced a joint commitment to strengthen efforts against the sale and distribution of infringing and pirated publications. This marks the strongest and clearest unified response from e-commerce platforms to book piracy in recent years. The platforms pledged to improve internal compliance measures, enhance merchant verification, remove infringing content more quickly, and ensure effective implementation of notice-and-takedown procedures. They also committed to strengthening complaint mechanisms, increasing penalties for non-compliant merchants, and cooperating closely with regulators and law enforcement authorities. The initiative reflects growing efforts by major platforms to improve IP protection and accountability within China’s online marketplace. Read more on the announcement from NCAC in Chinese

2. Judicial updates

2.1 China’s Supreme People’s Procuratorate publish example cases of malicious IP litigation

On 29 June, the SPP published five cases addressing malicious IP litigation, which collectively demonstrate that Chinese authorities are willing to look beyond the formal existence of an IP right and examine the underlying conduct of the claimant. Factors such as defective or invalid rights, bad faith trade mark registrations, failure to disclose material information, lack of genuine commercial use, strategic timing of lawsuits, and attempts to extract improper commercial advantage were treated as indicators of malicious litigation. Several cases involved claimants asserting rights they knew, or should have known, were fundamentally flawed. These included reliance on patents that had been invalidated or were known to have serious validity concerns, as well as the concealment of adverse developments from the courts. The decisions reinforce the principle that IP enforcement in China must be grounded in good faith. Read more on the typical cases from SPP in Chinese

3. Case

3.1 Louis Vuitton wins RMB 10million in trade mark dispute against Molly Tea

On 2 July, the Suzhou Intermediate People’s Court in Jiangsu Province ruled that Molly Tea, one of China’s leading tea-chain brands, had infringed seven of Louis Vuitton’s registered four-petal flower trademarks. The court ordered Molly Tea to pay RMB 10 million in economic damages, plus RMB 300,000 in legal costs. The company was also required to publish corrective statements on its official website and social media platforms. The ruling has sparked widespread public debate in China, with some commentators and social media users arguing that Louis Vuitton’s iconic four-petal monogram may have drawn inspiration from decorative motifs found in Asian art and architecture dating back to the Tang Dynasty (618–907 AD). Beyond the trade mark dispute itself, the case highlights broader tensions between the enforcement of IP rights and claims of shared cultural heritage in China’s evolving legal and commercial landscape. Molly Tea has announced its intention to appeal the decision. Read a BBC coverage of the case in English

If you would like any further information on any of the above matters or to discuss Embassy support for your company in China, contact Leo Zhuang (Leo.Zhuang@fcdo.gov.uk).