Brand Free Riding to be Sanctioned under Unfair Competition Law

The administrations for industry and commerce (AICs) nationwide are required to wage a special campaign against a specific unfair competition act-free riding of famous brands, according to a circular released by the State Administration for Industry and Commerce (SAIC) on September 1, 2007.

Under the circular, registering others' famous brand or trademark as one's own trade name and using it in various forms in the market shall be sanctioned as unfair competition if it misleads consumers and causes confusion. Other IPR violations such as counterfeiting the unique names, packaging, decoration as well as trade secret misappropriation shall also be investigated and sanctioned.