Chinese officials have proposed amendments to the country’s Trademark Law to improve intellectual property protection and to increase foreign investments.

Earlier this year, the USA claimed that China remains the world’s leading source of counterfeit products, with Chinese intellectual property theft costing between $225 billion to $600 billion a year to the US economy alone, according to a congressional estimate in Washington. To prevent these intellectual property’s infringements and to stimulate foreign investments, China suggested new rules.

Squatting involves registration of a popular trademark before the original brand owner. For example, Apple lost a trademark case in 2016 over use of the name “IPHONE” on handbags in China due to the fact that Chinese vendor had registered this trademark in 2010, three years before Apple registered its brand in the country.

China’s Trademark Law has been revised four times since its coming into force in 1983. This year it is its fifth revision. Proposed amendments to China’s Trademark Law would prohibit repeat applications by a single owner and would limit the number of trademarks per applicant. These changes would also prohibit the imitation or translation of well-known trademarks.

Thus, the ultimate aim of these amendments is to strengthen the legitimacy of registered trademarks and to improve business environment by eliminating anti-competitive trademark practices.