Trademark Special Right Pledge Registration: Sixteen Questions

Intellectual property pledge financing is one of the important measures to help businesses activate intangible assets, expand financing channels, and enhance innovative development capabilities. To further improve the efficiency of trademark pledge financing, assist businesses in overcoming difficulties, empower businesses, and create a sound business environment, common issues in pledge registration have been summarized, and “Sixteen Questions on Trademark Special Right Pledge Registration” have been compiled for the reference of applicants.

I. What is trademark special right pledge registration?

A trademark is an intellectual property. China trademark registration of the right of pledge of exclusive use of a trademark is a method by which the owner of the exclusive use of a trademark, i.e., the pledgee, uses their trademark as a pledge to provide financing guarantees, thereby allowing the pledgee to obtain a registration of a right in pledge.

II. What are the procedures for handling this business?

Currently, there are two ways to handle the registration of the right of pledge of exclusive use of a trademark.

One is for the applicant to handle it themselves. There are three locations available for handling, which are to go to the trademark business acceptance window where relevant acceptance business is conducted, to the trademark examination cooperation center established by the National Intellectual Property Administration outside Beijing, or to the National Intellectual Property Administration Trademark Registration Hall.

Another option is to entrust a china trademark agency registered with the National Intellectual Property Administration to handle it.

For the specific addresses and contact information of trademark application acceptance windows in various regions and the Beijing-outside review collaboration centers, please refer to the “Trademark Application Guide” section or the “Frequently Asked Questions” section’s “Local Trademark Application Acceptance Window Information Table” on the China Trademark Network.

III. What is the process for registering trademark proprietary rights as collateral for loans?

　　 1. The borrowing and lending parties determine the loan intention.

　　 2.Contract signing primarily involves the main contract and the pledge contract; the main contract is generally a loan contract, a guarantee contract, or a credit contract. The main contract and the pledge contract can be two separate contracts, or both aspects can be reflected in one contract.

　　 3.The pledge parties sign the pledge registration application and commitment letter, specifically see the “Trademark Application Forms” section under “Trademark Follow-up Business Forms” on the China Trademark Network.

　　 4.Pledge registration. Registration of trademark exclusive right pledge, change, extension, cancellation services are handled jointly by the pledge parties.

　　 5.Receive the pledge registration certificate, disbursement of loan.

Four、Must all submitted documents be paper documents?

Currently, trademark exclusive right pledge registration can only be processed offline, and all submitted documents must be paper documents.

Five、How many types of business are generally included in trademark exclusive right pledge registration?

Generally, there are five types of business. The first is trademark exclusive right pledge registration. The second is cancellation of trademark exclusive right pledge registration. The third is change of trademark exclusive right pledge registration, including name change and change of guaranteed creditor amount. The fourth is extension of trademark exclusive right pledge registration. The fifth is reissuance of pledge registration certificate. In addition, there are special businesses such as supplementary pledge registration and secondary pledge registration.

Six、How long does it take to process?

If the application documents are complete and comply with the regulations, the China National Intellectual Property Administration will accept the application. The date of acceptance shall be deemed as the date of registration. The China National Intellectual Property Administration will issue the Trademark Special Right Pledge Registration Certificate to the applicant within 2 working days from the date of registration.

Seven、Is there a fixed format for the submitted documents?

Application forms and commitment letters for various business matters must be downloaded and printed from the official website of the China Trademark Network. Specific contracts and other documents do not have a fixed format and should be drafted by the applicant. The basic content to be reflected can be referred to from the requirements for pledge registration related procedures stated in the Trademark Application Guide on the official website of the China Trademark Network.

Eight、Must the application documents be original copies?

Application forms, declarations, and other official documents must be submitted in original form. Contracts and other documents may be submitted in original form or as photocopies confirmed by both parties’ signatures and seals (requiring fresh stamps), which have the same legal effect as the originals.

Nine、Is there a government fee for trademark exclusive right pledge registration?

No fees are charged for any business related to pledge registration.

Is an evaluation of the trademark and the issuance of an evaluation report required?

Whether the assessment is determined by the two applying parties. No assessment report is required when applying for the registration of the pledge of industrial property rights.

Eleven、Is the certificate of pledge registration received in paper or electronic form?

The Certificate of Pledge Registration for Trademark Special Right is in paper form, with one copy for each party providing the pledge.

Twelve、Why is a commitment letter required to be signed?

Signing the commitment letter follows the principle of notification and commitment, based on the genuine intention of both parties to sign the application documents. The pledgee should fulfill the obligation to inform about the trademark status and potential risks, and the pledgee should be aware of the trademark situation and voluntarily undertake the corresponding risks. This measure is conducive to the sound operation of the business environment.

13. Do I need to pledge identical or similar trademarks to the intended pledged trademark?

Necessity. If circumstances arise where the debtor is unable to repay the debt, the pledgee may dispose of the trademark through methods such as auction or sale to obtain certain funds, thereby enabling the realization of the creditor’s rights. The disposal of the trademark would involve trademark transfer or assignment business. According to Article 42 of the Trademark Law, identical or similar trademarks should be transferred as a whole. Therefore, the requirements for pledging a trademark are the same as those for transfer, requiring the intended pledged trademark and its identical or similar trademarks to be pledged together.

Fourteen: Are there any requirements for the term of pledge registration?

Since the trademark exclusive right pledge contract is a subordinate contract, it should be signed after the main contract is signed. Therefore, the starting date of the pledge registration term stated in the application and the pledge contract cannot be earlier than the signing date of the main contract. The starting date of the pledge registration term is based on the actual date of entry. To safeguard the interests of both the pledgee and the pledgor, the ending date of the pledge registration term stated in the application and the pledge contract should be later than the ending date of the main contract or consistent with it. If the risk of inability to repay the debt arises before the expiration of the pledge registration term, an application for extension of the pledge registration term can be filed.

Fifteen: After the expiration of the pledge registration term, is it necessary to handle the cancellation of the pledge registration?

The pledge registration will automatically be terminated upon expiration without the need to process a pledge registration cancellation.

Article 16: Can a trademark be pledged to different pledgees?

Yes. Pledge registration of trademark proprietary rights can be processed for secondary pledge registration, tertiary pledge registration, and other business, resulting in corresponding pledge registration order. When handling this business, in addition to the basic materials, both the preceding and succeeding pledgees need to issue a notification statement separately, stating the specific details of the first pledge registration and indicating whether they agree to the secondary or tertiary pledge registration, so that both the preceding and succeeding pledgees are aware of the corresponding pledge registration order.