As business competition intensifies, trademarks—core assets and brand identifiers for companies—are attracting increasing attention in terms of registration and protection. The non-use cancellation system, as a key component of trademark law, ensures the rational use of trademark resources while also presenting numerous challenges for trademark owners. This article offers a comprehensive analysis of the non-use cancellation system from multiple dimensions, including legal regulations, practical points, positive and negative implications, circumstances not deemed as use, procedural rules, defense strategies, and the latest policy developments, to help enterprises respond effectively.

I. Latest Policy Trends

1.Raising the Evidentiary Threshold:

In 2025, the China National Intellectual Property Administration (CNIPA) implemented major reforms to the non-use cancellation system, abolishing the long-standing "reversal of burden of proof" rule. Applicants must now submit systematic investigation reports and supporting evidence, including details on the registrant's business operations and trademark usage. At least three platforms must be searched, and five consecutive pages of screenshots provided to eliminate symbolic or superficial evidence.

2.Introduction of Integrity Commitment Letter:

Applicants must submit a signed and sealed integrity commitment letter declaring that all submitted materials are "true, accurate, and complete." Broader platform and industry site searches are also required to ensure comprehensive evidence.

3.  Emphasis on Transparency and Accountability:

New requirements include submitting data collected during investigations into the target trademark’s non-use, as well as online search results using the registrant’s name, trademark, and related goods/services as keywords. Searches must be conducted through general search engines and, where applicable, industry-specific platforms. If both the applicant and registrant are in the same region, CNIPA may also require on-site investigations.

4. Restrictions on Anonymous Cancellations:

Since the second half of 2024, CNIPA introduced measures to limit anonymous filings to curb abuse. As of late April 2025, trademark agents must submit a declaration ensuring that the identity of the applicant has not been concealed.

II.Legal Provisions

1. Article 49(2), Trademark Law of the People’s Republic of China:

A registered trademark that has become a generic name or has not been used for three consecutive years without justifiable reason may be cancelled upon request by any entity or individual. CNIPA must decide within nine months, extendable by three months upon approval.

2. Article 66, Implementing Regulations of the Trademark Law:

The applicant must explain the non-use situation when filing. CNIPA will notify the registrant, who must submit evidence or a justifiable reason within two months. Failure to do so may result in cancellation. Evidence includes both direct use and licensed use materials. Cancellation can be requested only after the third anniversary of registration.

3. Article 26, SPC Provisions on Trademark Authorization and Confirmation Cases:

Use by the registrant, a licensee, or any use not violating the registrant's will qualifies as use. Minor differences from the registered mark that do not alter distinctiveness are acceptable. Mere transfers or public declarations without actual use are not considered use. If the registrant had genuine intent and preparation to use but was impeded by external factors, it may be considered justified.

III. Practical Considerations

1. Filing a Non-Use Cancellation:

Applicants must submit the "Three-Year Non-Use Cancellation Application" along with preliminary investigation evidence such as online search results and market reports. Corporate applicants must stamp the form; individuals must sign it.

2. Evidence Submission and Recognition:

The registrant must submit proof of use or justifications within the stipulated timeframe. Evidence must:

Relate to the approved goods/services

Demonstrate use within the prescribed period

Reflect commercial use that helps consumers identify the source

3.Valid Justifications:

Justifiable reasons include force majeure, policy restrictions, or bankruptcy. For instance, natural disasters or government regulation of an industry that hinders use may qualify.

4.Examination and Decision:

CNIPA reviews the application and both parties' evidence before making a decision. Parties may appeal or initiate litigation if dissatisfied.

IV. Positive Impacts of Non-Use Cancellation

1. Optimizes Trademark Resource Utilization:

Frees up unused trademarks, improves efficiency, and prevents waste.

2.  Promotes Fair Competition:

Prevents hoarding or misuse of registrations that block others from entering the market, ensuring alignment between registration and actual use.

3. Reinforces the Use-Oriented Nature of Trademarks:

Encourages owners to actively use their trademarks, reinforcing the brand’s distinguishing function.

V. Negative Aspects

1.Malicious Cancellations:

Some entities may abuse the system to disrupt competitors by filing cancellation requests without merit.

2. Increased Burden for Rights Holders:

To avoid cancellation, trademark owners must collect, organize, and preserve usage evidence—raising costs and administrative burden.

VI. Standards for Recognized Use

1.Usage Methods:

Includes use on products, packaging, advertising, promotional materials, storefronts, websites, mobile apps, and social platforms.

2. Intent to Use:

The user must intend to use the mark for identification, as evidenced by licensing efforts or investment in brand management.

3.Use Effectiveness:

The use should allow the public to identify the source of the goods/services.

VII. Circumstances Not Considered Trademark Use

1.Non-commercial or Internal Use:

Usage within company premises or non-commercial events does not count.

2.Altered Trademarks:

Significant changes that affect distinctiveness are not recognized as use.

3.Only Licensing/Transfers Without Use:

Mere legal acts without actual application are insufficient.

4.Token Use for Registration Maintenance:

Minimal or formal use to avoid cancellation is not valid.

5.Public Declarations Without Use:

Stating ownership rights without practical usage is inadequate.

6.Insufficient Evidence:

Submitting contracts or witness statements without tangible proof of commercial use is not enough.

VIII. Defense Strategies

1.Maintain a Robust Evidence Chain:

Retain contracts, invoices, ads, test reports, and trade fair materials. These should clearly show trademark, name, and registration number.

2.Implement Trademark Use Plans:

Establish usage plans for defensive or reserve marks, regularly use them on approved goods, and register license agreements.

3.Update Registration Info:

Ensure accurate contact details to avoid missing key notifications.

4.Respond Promptly to Cancellation:

Submit full evidence within 2 months. If usage was blocked by force majeure, provide official documentation.

5.Proactively Maintain Core Trademarks:

Use trademarks at a small scale and preserve records to counter cancellation risks.

6.Prepare for Legal Challenges:

If CNIPA upholds registration, the applicant may appeal. Trademark owners should prepare originals for evidence review during appeals.

Conclusion

As a critical component of trademark law, the non-use cancellation system directly impacts rights holders and market dynamics. In a changing regulatory environment, enterprises and professionals must stay alert, understand the rules and defenses thoroughly, and respond proactively to potential challenges. Doing so not only safeguards brand rights but also contributes to the fair allocation of trademark resources and competitive market order—ultimately helping businesses strengthen their brand and achieve sustainable growth.