If you plan to sell your products in China, it is crucial to have a Chinese version of your brand name. Otherwise, someone else will come up with it for you. The question is whether you want to have control over your name or let others decide it for you. In a recent case, a court in Guangzhou ordered New Balance's Chinese affiliate to pay a significant compensation of nearly $16 million to a Chinese shoe manufacturer. The manufacturer had registered a trademark for the Chinese version of the brand name, "Xin Bai Lun." Despite knowing that the trademark had already been registered, New Balance continued to use the same mark and unsuccessfully challenged it in the past.
As a result, the court deemed New Balance's actions as malicious trademark infringement and imposed a substantial amount of damages, considering the brand's extensive sales in China. This serves as a reminder for all brands to prioritize China Trademark Registration as early as possible. It is not only applicable to well-known global brands like the examples mentioned above but also to smaller brands and companies that are just starting out. Remember, even Nike began as a small company.
Registering a China Trademark is a relatively small effort compared to the potential financial implications and headaches that can arise in the future. Furthermore, a company without its trademark registered in China will face challenges in combating counterfeiters.