The State Administration of Industry & Commerce issued new rules to enhance punishment on trademark infringement.
Crackdown on trademark infringement
SAIC said so in the Opinions on Deepening Implementation of Trademark Branding Strategy to Promote Chinese Brand Construction.
The official document puts forward to make it easier for trademark registration and enhance the protection of the exclusive right of registered trademark.
With respect to trademark protection, SAIC promised to enhance the administrative protection of trademarks.
It emphasized to crackdown on infringing online trademarks illegally.
According to the new rules, if a company is punished for trademark infringement and acting as illegal trademark agent, relevant information will be recorded in the national enterprise credit information system.
It means that if a tire company is punished in a trademark lawsuit, it might be involved in a "blacklist".
In addition, the industry and commerce authorities will strengthen collaborative enforcement with the police, customs, and quality inspection authorities and connect trademark administrative enforcement with criminal justice.
Frequent tire trademark lawsuits
Over the past few years, lawsuits for trademark disputes occurred frequently in tire industry, and almost every case was influential.
Not long ago, two tire companies' trademark dispute appeared on media headlines.
The trademark of Toyomoto Corp. was announced by SAIC as invalid due to its dispute with Toyo Tires.
In addition, DMARK Tire (Qingdao) Co., Ltd. also trapped into a trademark dispute with Shandong Yongtai Group Co., Ltd. and Shandong Dunlun International Trade Co., Ltd.
In this case, DMARK Tire filed a lawsuit against Yongtai Group, while the latter won the case.
An industry insider commented that although Yongtai Group won the case, it lost customers and broke the basic rules as a foundry.
Because of trademark infringement, Sentury Tire was sued by Michelin, and Bridgestone sued Chinese tire producers several times for similar issues.
A tire company executive said that tire producers with own brands suffered great losses in many trademark lawsuits as they were not aware of trademark protection.
He believed SAIC's enhancement on crackdown on illegal trademark infringement will help domestic producers establish brand thinking and create a better environment for the building of Chinese tire brands.
