Recordation Of Intellectual Property Rights With China Customs: A Cost-Effective Route For IP Protection

Intellectual property (IP) rights attached to goods entering or leaving China's customs territory can receive proactive protection ex officio even before the goods reach their target market. Under relevant Chinese customs laws, domestic and foreign IP right holders may apply to the General Administration of Customs (GACC) for recordation of their IP rights (trademarks, copyrights, and patents). Once recorded, such information can serve as a crucial basis for Customs to respond more proactively and efficiently to import and export goods suspected of infringing upon the recorded IP rights during customs supervision. Currently, no administrative fees are charged for such recordation, making this mechanism a highly cost-effective option for IP right holders.

Right holders can apply for IP recordation at any time, while the recordation takes effect upon Customs' approval. Provided the underlying IP right remains valid, a single recordation is valid for up to 10 years and can be renewed. If a right holder discovers that suspected infringing goods are about to be imported or exported, the right holder can apply to the local port Customs to detain the goods. More importantly, if Customs independently discovers imports or exports suspected of infringing upon recorded IP rights, they shall immediately notify the right holder in writing. If the right holder submits an application and provides a security bond within 3 working days of the date the notice is served, Customs shall detain the suspected infringing goods pending further handling by the relevant authorities and the right holder under applicable IP protection mechanisms.

Key Benefits of Customs Recordation

1. More Efficient Rights Enforcement: Customs recordation provides a solid and reliable foundation for Customs to take proactive, ex officio protection measures. This helps prevent infringement by intercepting infringing goods before they enter domestic or foreign target markets, ensuring effective handling with the right holder's cooperation.
2. Cost Savings for Right Holders: Under the ex officio protection model, when a right holder receives a Customs notice and requests the detention of suspected infringing goods, the required security bond is capped at a maximum of RMB 100,000 per case. Furthermore, trademark owners can apply for a general security bond as low as RMB 200,000, thereby benefiting from a more streamlined and convenient protection procedure.
3. Strong Evidentiary Support for Subsequent Enforcement Proceedings:After the suspected infringing goods are detained by Customs, if the intellectual property right holder wishes to initiate further administrative, civil, or even criminal legal actions, Customs' determinations and disposition decisions (such as confiscation) concerning the infringing goods can provide strong evidentiary support for judicial authorities or other relevant administrative authorities, as well as for the right holder in pursuing infringement liability through civil channels.
4. Preventing Future Infringement Risks: Customs' enforcement actions against infringing goods and infringers—such as confiscation of infringing goods and the imposition of fines—serve as a powerful deterrent to potential infringers. At the same time, the public availability of recordation information encourages manufacturers, traders, and distributors engaged in import and export activities to exercise greater diligence and proactively avoid potential infringement.

Conclusion

While IP customs recordation is not complicated, professional support remains critical. Notably, where a foreign IP right holder applies for customs recordation, the application must be submitted through its representative office established in China or by entrusting a qualified agent within China. Many multinational companies have successfully completed customs recordation with the assistance of Shanghai Shaohe Law Firm and have achieved favorable and cost-effective IP protection outcomes.

Appendix: Main Legal Basis: Customs Law of the People's Republic of China, Regulations of the People's Republic of China on Customs Protection of Intellectual Property Rights, and its implementing rules.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.