(Source: https://pltfrm.com.cn)
Introduction
Trademark squatting in China has evolved into a sophisticated industry—professional squatters now use AI tools to scrape overseas brand databases and file within hours of a new trademark being published anywhere in the world. In 2025, the average ransom demand exceeds 800,000 RMB per class. Here are the exact strategies top overseas brands use to stay one step ahead.
1. Pre-Entry Trademark Search & Registration
1.1 Triple-Layer Search Exact + Similar + Phonetic: Search not only your exact mark but also Chinese character transliterations and similar-sounding names. Bad-Faith Database Check: Cross-reference against known squatter entities listed in CNIPA’s public records.
2. Speed: The Only Real Defense
2.1 File Before You Even Announce 6–12 Months Before Launch: Top brands now file trademarks in China the same day they file in their home country or EU. Madrid Protocol Limitation: Madrid filings that designate China still take 18 months—too slow against local squatters.
3. Chinese Brand Name Creation & Protection
3.1 Professional Name Development Meaning + Sound + Availability: Work with agencies that create Chinese names that are meaningful, pronounceable, and available across all 45 classes. Immediate Triple Filing: Register the Chinese name, pinyin, and English mark simultaneously.
4. Dealing with Existing Squatters
4.1 Negotiation vs Litigation Buyback vs Cancellation: Over 70% of cases are resolved through negotiated buyback, but only after filing opposition/cancellation to pressure the squatter.
Case Study: Australian Skincare Brand That Beat a Professional Squatter Ring
A fast-growing Australian clean beauty brand found its name registered by a known squatting group in 22 classes one month before its Xiaohongshu launch. We filed oppositions with evidence of the squatter’s bad-faith pattern (over 400 identical filings), initiated invalidation actions, and registered 35 defensive variations. The squatter abandoned all applications within 45 days to avoid CNIPA blacklisting, and the brand secured full ownership at zero buyback cost.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
