China's new trademark law to take effect in May

China's revised trademark law, set to strengthen intellectual property protection and ensure a fair market for trademark holders, will take effect on May 1.

An amendment to the law, which was passed by the country's top legislature in August, will raise the compensation ceiling for trademark infringement to 3 million yuan (about 500,000 U.S. dollars), six times the previous limit.

The new law mitigates trademark holders' responsibility in providing proof of infringement, saying alleged offenders shall provide their account books or other materials for investigation. Otherwise, compensation could be determined according to amounts proposed by trademark holders.

The legislation also says that trademark agencies cannot accept entrustment if they know or should know that their clients are conducting malicious registration or infringing on the trademark rights of others

The law offers protection for well-known trademarks, giving owners the right to ban others from registering their trademarks or using similar ones.

However, the words "renowned trademark" shall no longer be allowed in promotions or advertising.

Sounds can be registered as trademarks as long as they are easily distinguishable and recognizable.