A foreign parent owns the China registration. Its Chinese subsidiary sells the branded products, and a local factory prints the logo. Start by identifying which entity is authorised to use the mark and for what purpose. If the owner licenses a registered mark, it must submit the license for recordal with CNIPA. An unrecorded license generally remains valid between the parties unless they agree otherwise, but it cannot be asserted against a good-faith third party. Trademark Law, Article 43 · Supreme People’s Court trademark interpretation, Article 19
Who needs permission to use the mark?
Treat the parent, subsidiary and factory as separate legal entities. If the subsidiary sells branded goods under its own license, put that grant in writing. If a factory only applies the mark to goods under specific orders, document the limited manufacturing authority and check whether the arrangement grants a separate license or sublicense. If the subsidiary grants a sublicense, obtain the registered owner’s express consent and include it in the recordal materials. CNIPA license recordal guidance · CNIPA list of filing materials
In the contract, identify each China registration, the permitted goods, the term, exclusivity, sales channels and any right to subcontract or sublicense. Specify how the owner will supervise quality, how the licensee will meet the standard, and what happens to stock and packaging when the arrangement ends. For goods using another party’s registered mark under license, the law also requires the licensee’s name and the goods’ place of origin to appear on the goods. From 1 January 2027, Article 55 of the revised Trademark Law expressly gives the licensor a right to terminate if the licensee fails to meet its quality assurance obligation. Current Trademark Law, Article 43 · Revised Trademark Law, Articles 55 and 87
What to file with CNIPA
The licensor files during the term of the license. Match the parties’ legal names and the registration numbers to the relevant records. Prepare the recordal form, identification documents for both parties and the power of attorney if using an agent. Specify the license term and the goods or services covered. An overseas company without a business establishment in China must appoint a qualified Chinese trademark agency. Keep the signed contract and the recordal notice together, and check the required filing if details change or the license ends early. Trademark Law, Article 18 · Implementing Regulations, Article 69 · Our guide to the license recordal procedure
What changes when the brand is sold?
A license gives permission to use the mark. An assignment changes ownership, and the buyer acquires the exclusive trademark right from the date the approved transfer is announced. Before signing a sale, check the seller’s portfolio for similar registered marks on identical goods and identical or similar registered marks on similar goods. Article 42 requires those related registrations to transfer together. CNIPA can require correction and treat an uncorrected application as abandoned. A transfer likely to cause confusion or other adverse effects may also be refused. The revised law retains the joint-transfer rule in Article 46. Current Trademark Law, Article 42 · Implementing Regulations, Article 31 · Revised Trademark Law, Article 46
For example, if a seller wants to transfer its word mark for coffee while retaining a similar logo registration for coffee, check the relationship between the two marks before fixing the deal perimeter. Also give the buyer a schedule of existing licenses and their recordal status. A previously effective license generally survives an assignment unless the license contract provides otherwise. Review that rule alongside the separate limits on asserting an unrecorded license against a good-faith third party. Identify in the deal documents who will handle quality oversight, notices and any necessary filings after closing. Supreme People’s Court trademark interpretation, Articles 19–20 · China trademark assignment service