Trademark squatters register foreign brand names in China, then demand payment, block sales, or file complaints against your listings. In a first-to-file country, the squatter often wins unless the real brand owner acts quickly with the right evidence.
How squatting works
China registers trademarks on a first-to-file basis with low official fees (270 RMB per class). Squatters file dozens of well-known foreign brand names across classes, wait for the brand to enter China, then demand a payment or an inflated purchase price. Average ransom demands have reached hundreds of thousands of RMB per class in reported cases.
In the cases we see, the squatter rarely writes first. The brand owner finds out because a marketplace complaint arrives, or a China launch suddenly has no clean name to use.
Why foreign brands are vulnerable
Most overseas brands file only in their home market first. By the time they plan a China launch, their name is already taken. Platform enforcement against copycats usually requires a Chinese registration, which means the squatter can also file complaints against the real brand’s sellers.
What to do if your brand is already squatted
- Gather evidence of bad faith. Prior sales, marketing, domain registration and trademark filings outside China all help prove the squatter knew of your brand.
- Oppose or invalidate. A pending squatter application can be opposed; a registered squatter mark can be attacked through invalidation or non-use cancellation proceedings.
- File your own application immediately. In parallel, file the correct classes so you hold priority for future use.
The opposition window closes quickly after publication, so do not sit on a bad-faith application while you think it over. These proceedings are priced per case; we provide a free initial assessment and quote through the contact page.
How to prevent it
- File in China before you enter the market, ideally 6 to 12 months before launch.
- Register your brand in every class you actually use, plus likely expansion classes.
- Run monitoring so you learn about conflicting filings while there is still time to act.
