China Trademark Risks When Using Distributors or Agents in China

⏱️ Reading time: 8 minutes 📅 Updated: February 13, 2026 ✍️ Author: CTMAA Expert Team

Foreign brands entering China through distributors or agents often assume contracts ensure protection — yet under China’s first-to-file system, a local partner may legally secure ownership of the trademark first.

Executive Summary

Many foreign companies enter the Chinese market through local distributors, trading companies, or commercial agents. While this model reduces operational burden, it creates one of the most common and damaging trademark risks in China: distributor or agent trademark hijacking.

Under China’s strict first-to-file system, a distributor who files your trademark before you do may become the legal owner of your brand in China — even if you created and used the brand overseas for years.

This guide explains how distributor-related trademark risks arise, why they are legally complex, and how foreign companies can prevent or resolve them.

1. Why Distributor Trademark Hijacking Happens So Frequently

When foreign brands expand into China, they often:

  • Appoint a local distributor before filing a trademark
  • Share brand materials, packaging, catalogs, and marketing assets
  • Rely on commercial contracts instead of registration
  • Assume long-term cooperation guarantees protection
However, in China:
Trademark ownership is determined by registration, not by prior overseas use or private agreement alone.
If a distributor files first, the legal position may shift dramatically.

2. How Distributor Trademark Hijacking Typically Occurs

Common scenarios include:

2.1 Pre-emptive Filing Before Market Entry

A distributor, aware of the foreign brand’s growth potential, files the trademark in China before the brand owner does.

Later, the distributor may:

  • Demand exclusive distribution rights
  • Request transfer fees
  • Block the brand owner from appointing new partners

2.2 Filing After Relationship Deterioration

In some cases:

  • The cooperation begins normally
  • Disputes arise over pricing or territory
  • The distributor files the trademark as leverage

This is often discovered only when the foreign company attempts to change partners or expand in China.

2.3 Filing Through Related Entities

Some distributors avoid direct exposure by filing through:

  • Affiliate companies
  • Family members
  • Related trading entities

This makes evidence collection and bad-faith claims more complex.

3. Legal Framework: Article 15 and Bad Faith Filings

China’s Trademark Law includes provisions addressing agent or representative filings.

Article 15 provides that:

If an agent or representative registers a trademark in its own name without authorization, the legitimate owner may oppose or invalidate the registration.

However, practical challenges include:

  • Proving the agency relationship
  • Demonstrating prior cooperation
  • Providing contractual and communication evidence
If the relationship cannot be clearly established, the case may shift to a broader “bad faith” argument, which requires stronger proof.

4. Risks Created by Distributor Trademark Registration

If a distributor successfully registers your trademark in China, consequences may include:

  • Loss of brand control in China
  • Inability to terminate or replace the distributor
  • Customs recordal against your own goods
  • Platform complaints against your official accounts
  • Reputational damage
In extreme cases, the distributor becomes the only legally recognized trademark owner in China.

5. Why Contracts Alone Are Not Enough

Many foreign companies rely on distribution agreements that state:

  • The brand belongs to the foreign company
  • The distributor cannot register the mark

While such clauses are important, they do not override the first-to-file system.

Registration determines ownership.
Contracts help in legal disputes — but prevention through filing is significantly more effective.

6. Preventive Strategy for Foreign Brand Owners

6.1 File Before Appointing a Distributor

The safest strategy is clear:

Register your trademark in China before signing any distribution agreement.

This eliminates the incentive and legal possibility of hijacking.

6.2 Register Both English and Chinese Versions

Distributors sometimes register:

  • The original English mark
  • A Chinese transliteration
  • A Chinese translation

If the foreign brand fails to register Chinese versions, control of the localized brand may be lost.

6.3 Cover Key Subclasses

  • China’s subclass system allows third parties to register similar marks in uncovered subclasses.
  • Strategic subclass coverage reduces fragmentation and defensive gaps.

Learn more about: China Trademark Subclass System: What Foreign Applicants Need to Know

6.4 Monitor Trademark Filings

Regular monitoring allows early detection during the publication period, when opposition is simpler and less expensive than invalidation.

7. What If the Distributor Has Already Registered the Trademark?

Legal options may include:

The viability of each route depends on:

  • Timing of the filing
  • Strength of evidence
  • Nature of the commercial relationship

👉 Brand already registered by someone else in China — Legal Remedies & Actions for foreign companies

Early legal evaluation is critical.

8. Industries Most Affected by Distributor Trademark Disputes

Distributor-related trademark risks are especially common in:

  • Wine and food brands
  • Cosmetics and supplements
  • Industrial equipment
  • Consumer electronics
  • Fashion and lifestyle brands
Any industry entering China through intermediaries faces exposure.

Conclusion

Distributor and agent trademark hijacking is one of the most common causes of brand loss in China.

Foreign companies that delay filing often discover that their own distributor has become the legal trademark owner.

The solution is not complex — but it must be timely:

  • File early
  • Register all relevant versions
  • Align trademark strategy with distribution strategy
Preventive registration is significantly less costly than post-dispute recovery.

Frequently Asked Questions (FAQ)

Can a Chinese distributor legally register my trademark in its own name?
Yes. Under China’s first-to-file system, a distributor may file a trademark application unless legally restricted. If the distributor applies without authorization, the foreign brand owner must rely on Article 15 of the China Trademark Law or bad-faith provisions to challenge the registration.
What is Article 15 of the China Trademark Law?
Article 15 addresses situations where an agent or representative registers a trademark in its own name without authorization. If a clear agency relationship can be proven, the legitimate brand owner may oppose or invalidate the registration.
What evidence is needed to prove distributor bad faith in China?
Typical evidence includes distribution agreements, emails, purchase orders, marketing cooperation, invoices, and proof that the distributor was aware of the foreign brand before filing. The stronger the documented relationship, the stronger the case.
If my distributor owns the trademark in China, can I still sell products there?
Not without risk. The distributor, as the registered trademark owner, may block imports, record the mark with Customs, file infringement complaints, or restrict platform listings.
Is it necessary to register a Chinese-language version of my trademark?
Yes. Distributors frequently register Chinese transliterations or translations of foreign marks. Failing to register the Chinese version can result in loss of brand localization control in China.
How can foreign companies prevent distributor trademark hijacking in China?
The most effective strategy is to register all key trademarks in China before appointing distributors or sharing branding materials. Early filing eliminates leverage and significantly reduces legal risk.
By: CTMAA Expert Team
CNIPA-registered trademark professionals and cross-border IP specialists with extensive experience advising US and EU companies.
Reviewed: Kevin Kang Founder & Trademark Strategy Lead - 15+ years in China trademark strategy for foreign brands
View Full Team → Kevin Kang Kevin Kang

📌 Part of the China China Trademark Risk Scenarios series
This article is part of our China Trademark Risk Scenarios series for Using Distributors or Agents in China.

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