In recent years, it is not uncommon for some trademarks to be preemptively registered in bad faith. Some people even file infringement lawsuits against the prior right holder's products after preemptively registering the prior use and influence of others by improper means.
Company A is a company that sells auto parts, and sells the products of Company A, a well-known brand in the industry.
One day, Company A suddenly received the materials sent by the court, and Company B filed a lawsuit, arguing that the products sold by Company A infringed its exclusive right to use the registered trademark by using a mark similar to its registered trademark.
Company A wondered why it infringed its trademark rights because it had purchased the goods from formal channels and sold them all produced and sold by Company A. But if you take a closer look, the logo of the product you sell is indeed very similar to that of Company B, what is going on? 
After trial, the court found that the allegedly infringing products sold by Company A were indeed affiliated companies of Company A, which was a global company and was well-known in the industry. Company A has registered the owl graphic trademark in China and abroad
Company A's ** business company B has registered a fox avatar trademark abroad
Later, due to the limitation of product space, the above-mentioned trademark was derived from a simplified logo
The simplified logo is widely used on the products of Company A and its affiliates. After years of production, sales and publicity, the popularity of Company A and its products has radiated to the simplified logo of the registered trademark used on its products. On the other hand, since 2012, Company B has been approved for registration and obtained trademarks
Company B has also applied for the registration of hundreds of trademarks in various categories of goods or services, a large number of which are highly similar to the prior registered trademarks of Company A and its affiliates, and many of the trademarks have been rejected or invalidated in the opposition examination. Accordingly, the court held that Company A and its affiliates had a legal prior right basis for the simplified logo. In this case, the trademark in question claimed by Company B was highly visually similar to the logo of Company A, which enjoyed the legitimate prior rights, and its intention to imitate and attach to the trademark of Company A was obvious. Company B's malicious preemptive registration of a trademark that has been used by others and has a certain influence is a prohibited act stipulated in Article 32 of the Trademark Law of the People's Republic of China, which disrupts the market order of fair competition and violates the principle of good faith. In the end, the court rejected all of Company B's claims. Company B appealed against the first-instance judgment, but the second-instance court rejected the appeal and upheld the original judgment after trial. Company B has filed a large number of lawsuits across the country against the products bearing the marks involved in this case, and after the judgment of this case, Company B has withdrawn most of the lawsuits. Currently,The State Intellectual Property Office has declared the part of the trademark involved in the case registered by Company B invalid, and the remaining trademarks involved in the case are also under invalidation examination. 
"Bad faith registration" refers to the unauthorized registration of a trademark already used by another person by a third party, often for the purpose of obtaining commercial benefits in bad faith. Once a trademark is preemptively registered, other enterprises can use these trademarks to sell their own products, which may seriously damage the reputation and interests of the founding enterprise.
Therefore, we must apply for trademark registration as soon as possible, do a good job in trademark layout, and avoid the occurrence of trademark squatting. In the event that a trademark is preemptively registered, we can file a trademark opposition against the trademark that has not yet been successfully registered; Filing an application for invalidation or cancellation of a trademark that has been successfully registered. If you encounter a similar situation and do not know how to deal with it, you can consult a professional IP lawyer in time to formulate a corresponding strategy for you.
* |Part of the content is compiled from the editors of the People's Court of Wujiang District, Suzhou CityBeijing Gaowo Intellectual Property (ID: gaowoip-com).