China's Foreign Trade: Electronic Cigarette Market and Trademark Registration

The China Trade News Agency is a state-owned enterprise under the China International Trade Promotion Committee. Its main responsibility is to publish the China Trade News and organize the publication of the China Foreign Trade Magazine in both Chinese and English. The magazines aim to promote and interpret foreign economic and trade policies, disseminate information on domestic and overseas trade investment, legal services, and help businesses engage in international operations. The primary audience includes international trade investment promotion agencies at all levels and in all industries, regional and industry chambers of commerce of the China International Chamber of Commerce and their members, relevant government departments and social organizations, foreign embassies and commercial organizations in China, outward-oriented enterprises, foreign-invested enterprises, conference and exhibition companies, and legal service providers.

China's Foreign Trade was established in 1956 as one of the earliest business magazines in China. It is published in both Chinese and English and distributed domestically and internationally. The magazine covers a variety of topics including elite discussions, news updates, consumer and cultural matters, as well as special reports, featured topics, cover stories, business news, global references, legal advice and market insights.

In December 2022, this journal published an article titled "The Essential Ticket to Enter the E-Cigarette Market - Registering Trademarks" written by Ms. Chen Xi, an expert from the China Council for the Promotion of International Trade Patent and Trademark Law Office.

Image source: "China Foreign Trade" 2022 Issue 3, the front page article titled "Registered Trademarks: Indispensable Access Pass to the E-Cigarette Market".

The summary of the paper is as follows:

Overview of Background:

As electronic cigarette products continue to innovate and develop, consumer acceptance has significantly increased, leading to the rapid growth of the global electronic cigarette industry. According to the "2022 Blue Book of Electronic Cigarette Industry Export", the global electronic cigarette market has exceeded $100 billion in 2022. There are over 1,500 domestic electronic cigarette manufacturers and brands, with nearly 100,000 electronic cigarette supply chain and peripheral service companies. The Shenzhen region of China, as a production center for electronic cigarettes, has built a mature industrial chain system, bringing broad prospects for industry development.

On April 12, 2022, the State Administration for Market Regulation and the National Standardization Committee approved the "National Mandatory Standard for Electronic Cigarettes," to be implemented on October 1, 2022. Previously, the State Tobacco Monopoly Administration had issued the "Management Measures for Electronic Cigarettes," to be implemented on May 1, 2022. These two new regulations constitute the regulatory framework for China's electronic cigarette industry and mark the beginning of a new era of orderly development.

2. Research Team:

The author of this article is Ms. Chen Xi, who works at the Patent and Trademark Affairs Office of the China Council for the Promotion of International Trade. She serves as a trademark agent at the Beijing office and is responsible for tasks such as trademark application, search and monitoring, administrative protection of trademark rights, trademark infringement lawsuits, and other related business.

Image source: official website of China Council for the Promotion of International Trade Patent and Trademark Office "Professional Staff".

The China Council for the Promotion of International Trade Patent and Trademark Office was established in 1957 and is the oldest intellectual property firm in China as well as one of the largest comprehensive firms in terms of intellectual property.

The firm currently has 213 patent agents, 60 trademark agents, and 106 legally qualified professionals. The firm offers consulting, application, mediation, administrative protection, and litigation services in the areas of intellectual property, including patents, trademarks, copyrights, domain names, trade secrets, and commercial design for clients domestically and internationally.

The China Council for the Promotion of International Trade Patent and Trademark Office is headquartered in Beijing, with branch offices located in New York, Silicon Valley, Tokyo, Madrid, Hong Kong, Guangzhou, Shenzhen, and Shanghai.

3. Regulations on trademarks of electronic cigarettes:

On December 13, 2021, the National Intellectual Property Administration issued the "General Criteria for Judging Trademark Infringements," which also includes provisions related to the use of trademarks for new tobacco products such as electronic cigarettes. Article 4 of the criteria stipulates that according to Article 6 of the Trademark Law, Article 19 of the People's Republic of China Tobacco Monopoly Law, Articles 22 and 65 of the Implementation Regulations of the People's Republic of China Tobacco Monopoly Law, cigarettes, cigars, packaged tobacco and new tobacco products such as electronic cigarettes must use registered trademarks. Those that have not been approved for registration in China are not allowed to be produced or sold in China. Imported cigarettes, cigars, packaged tobacco, and new tobacco products such as electronic cigarettes sold in China must use registered trademarks approved in China. Similarly, new tobacco products such as electronic cigarettes imported into China must also use registered trademarks approved in China.

4. Suggestions for registering electronic cigarette trademarks:

Regarding the registration of trademarks for e-cigarette companies, the author hereby presents the following suggestions:

For electronic cigarette companies, it is important to obtain trademark registration as early as possible. Based on the current average examination period for trademarks, it takes about 7 months from application to approval if the process goes smoothly. Electronic cigarette companies should plan ahead for trademark registration to avoid affecting various stages of their production, manufacturing, technology evaluation, and sales.

When naming trademarks for electronic cigarette products, the issue of distinctiveness should be fully considered to avoid being rejected for absolute reasons. Therefore, electronic cigarette companies should conduct trademark searches before applying for trademarks to determine if they are identical or similar to others' trademarks, in order to reduce the risk of rejection and save time and costs.

According to the current "Classification of Similar Goods and Services," electronic cigarettes belong to group 3407, while traditional tobacco belongs to group 3401. There are differences between the two in terms of production materials, function, use, and sales channels, and they are not considered similar goods. When applying for a trademark, electronic cigarette companies may consider registering under all similar groups in group 34 to prevent others from taking advantage of registration loopholes to hijack their trademarks.

As previously mentioned, electronic cigarette companies wishing to sell their products in China must first pass a technical evaluation before the product is put on the market. Considering that this pre-approval process can be time-consuming and uncertain, there is a risk that the product's trademark may be revoked during this period. Electronic cigarette companies can effectively avoid the risk of revocation by re-registering before passing the technical evaluation.

Conclusion:

The electronic cigarette industry in China, which forms a critical part of the global electronic cigarette market, is presently experiencing a significant period of opportunity. As regulatory policies for the electronic cigarette market are gradually implemented, the industry will enter a new phase of development. This presents both new opportunities and challenges for electronic cigarette companies. These companies should quickly comprehend regulatory requirements, develop corresponding plans and strategies, and implement a trademark strategic layout as early as possible to obtain entry into the market. By doing so, they will ensure that they gain more market share and profit space and remain competitive in the future. Furthermore, they should constantly improve research and development and technical investments to enhance product quality and competitiveness in response to consumers’ evolving demands. This will further improve their competitive edge and market share.

Reference:

The Essential Entry Ticket for the E-Cigarette Market - Registered Trademarks

Further reading:

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