FRANCHISING AND TRADEMARK PROTECTION: PERSPECTIVE OF CHINA

This paper analyzes the manifestations and reasons of infringement to the franchisors' trademark from the Chinese perspective in the franchising sector. Some judicial cases are selected and dissected to indicate the trademark rights to be protected in China and some countermeasures were put forward to protect the trademark rights from the franchisors' perspective. As the cornerstone of the franchise method of doing business, trademarks, symbols of goodwill, embody the great value and convey the valuable assets of the owners. If a franchisor is to capitalize on the exclusivity of its unique intellectual property, legal protection of its valuable assets is essential and crucial in China today with the spectacular development since franchising was introduced into China in the 1980s because infringement often happens to the franchisors' trademark due to the lack of consciousness of protecting their rights. It is shown that the standards and effectiveness of trademark protection should be reinforced in the Chinese legal jurisdiction as well as in the drafting of a franchise agreement.