Marks & Clerk's Greater China IP Update - December 2025

We are pleased to present the second edition of Marks & Clerk’s Greater China IP Update, a dedicated publication offering insights, updates, and expert commentary on the evolving IP landscape across Greater China.

In this edition, we explore digital economy patents, companies' ownership of multiple intellectual properties, the XML format for all patent e-filings, the landscape of patent examination, the ongoing processes in patent evaluation, the Supreme Court's retrial ruling, and much more.

As we approach the end of the year, we would like to take this opportunity to wish you a Merry Christmas and a Happy New Year! Thank you for being part of our journey. We look forward to continuing to share valuable insights and support your business in the coming year.

Please share your feedback or get in touch with our Greater China IP team to discuss how we can support your business.

Legal updates

• In 2024, China led globally in core digital economy invention patent grants, totalling 500,000, marking a 23.1% increase from the previous year, as reported by the China National Intellectual Property Administration (CNIPA). The nation's AI sector emerged as a key driver, with China holding 60% of global AI-related patents. Additionally, the number of foreign enterprises applying for invention patents in China has risen, with 407,000 valid patents held by them, reflecting global confidence in China's digital economy. This leadership in digital economy patents positions China as a significant player in shaping global technological standards and markets. Please see the full article in the link here.
• Recently, reports have emerged of companies claiming ownership of multiple IPs, often referring to characters that can be turned into plush toys or other products. This trend highlights a growing interest in intellectual property (IP), especially after a line of collectible plush toys created by a Hong Kong illustrator significantly boosted a company's revenue. However, the broad use of "IP" can create confusion about what it truly encompasses. Intellectual property includes trademarks, patents, designs, copyright, and more, each with varying registration protections in different jurisdictions. As awareness of IP value increases, it's important to ensure that your own IP is well protected. Please see the full article in the link here.
• The China National Intellectual Property Administration (CNIPA) is shifting to mandatory XML format for all patent e-filings, replacing previous Word and PDF formats. This transition starts on 1 October 2025 for certain applications requiring accelerated procedures and will extend to all filings in 2026. The mandate applies to national applications, including inventions, utility models, and designs. While XML format is required for key documents, some exceptions allow for other formats. This move aims to reduce average examination periods and enhance processing efficiency, although it may increase initial filing costs for applicants and patent agencies due to additional formatting requirements. Please see the full article in the link here.
• The landscape of patent examination is more intricate than ever, with rigorous evaluations of prior art, novelty, and inventive steps. As technological innovation rapidly evolves, both examiners and applicants must stay agile to ensure fairness and uphold the integrity of patent grants. Recently, China’s Patent Office curated a series of landmark cases, highlighting practices and emerging trends across diverse fields. Please see the full article in the link here.
• The "Shenzhen-Hong Kong-Guangzhou" cluster has been recognised as the world's leading innovation cluster in the World Intellectual Property Organization's (WIPO) Global Innovation Index (GII) 2025, rising from second place for the past five years. With 2,292 Patent Cooperation Treaty (PCT) applications, 3,775 scientific articles, and 135 venture capital deals per million inhabitants, the cluster demonstrates a vibrant IP ecosystem. The GII also introduced venture capital deal volume as a new metric, emphasising the region’s investment appeal. Events at Hong Kong Science Park included the launch of the GII rankings and an agreement to enhance IP resources, bolstering its global standing. Please see the full article in the link here.
• The Supreme Court upheld the distinctiveness of C&S Paper's logo mark No. 8262105, overturning a previous judgment that deemed it lacking in inherent distinctiveness. The case arose after Guangxi Zhongxin Paper Co. challenged the mark's validity, claiming it monopolized public resources. The Supreme Court clarified key principles for assessing trademark distinctiveness, emphasising the relevance of the "applicant’s registration time," the "relevant public," and “a holistic judgment of the mark's overall design”. The ruling distinguishes between inherent distinctiveness and actual market use, providing important guidance for future trademark cases and emphasising the need for unique logo designs during registration. Please see the full article in the link here.
• In recent years, promoting goods and services via social media has become prevalent, leading to instances of trademark infringement. A notable case involves Natural person Li, who posted promotional flyers using the Tesla logo on 1,097 charging piles at 113 Supercharger stations since 2021. Li aimed to attract Tesla owners to join WeChat groups he created, where he advertised various automotive services. Tesla Inc. sued Li for trademark infringement and unfair competition. The first court found that Li's actions created consumer confusion, resulting in an order for him to pay 100,000 yuan to Tesla. Li appealed, claiming his activities were altruistic, but the higher court upheld the original judgment, emphasising the commercial nature of his actions and the potential for public confusion. This case highlights the need for intellectual property rights holders to actively protect their trademarks online. Please see the full article in the link here.
• The China National Intellectual Property Administration (CNIPA) has introduced the “Measures for Expedited Examination of Trademark Registration Applications" to improve trademark examination efficiency, with a target of reviewing eligible applications within 20 working days. This expedited process applies to applications relevant to national or public interests, major projects, or public emergencies. Applicants must submit a formal request with supporting documentation. The Measures provide some flexibility in item descriptions, avoiding strict adherence to local classifications. However, concerns arise over increased refusal rates (up to 40%), leading to challenges for applicants and CNIPA, highlighting the need for a balance between efficiency and quality outcomes. Please see the full article in the link here.

Awards and Recognitions

• Marks & Clerk's Greater China team has been ranked as a notable firm in the non-contentious WIPR China International Trademarks Rankings 2025. Please see the full article in the link here.
• Marks & Clerk's Greater China team has been recognised as a Band 4 firm in the Legal 500 Greater China Guide, for Hong Kong (Intellectual Property) and China (Intellectual Property: foreign firms). Please see the full article in the link here.