Possible Solution to Trademark Squatting in Mainland China

Names of some of the most famous places in Taiwan (e.g. Hsin Chu, a place famous for its rice noodles) have been approved for registration as marks in Mainland China. The officials of the Taiwan Intellectual Property Office ("Taiwan IPO") recently paid a visit to its counterpart in Mainland China as they are increasingly concerned with this serious issue and provided its counterparts at the China Trademark Office with a list of those famous places, hoping that the Chinese officials would find a way to curb said squatting activities. The recent exchange of views has led to better understanding of the situation by the Chinese officials, and as a goodwill gesture to the Taiwan IPO, the Chinese officials hinted at a possible solution to this problem, i.e., Article 10.1.8 of the China Trademark Act. Article 10.1.8 of the China Trademark Act prohibits registration of marks that are detrimental to socialist morals or customs, or have other harmful effects. This article is considered to be a paramount clause in the China Trademark Act. The China Trademark Office indicated that it may on its own cause initiate actions to cancel a squatter's mark if there is appropriate amount of evidence that the mark will cause confusion.