Russia’s IP Crackdown: A Warning for Brands in China

Home | China Law Blog | Russia’s IP Crackdown: A Warning for Brands in China Table of Contents Toggle Russia Non-Use Cancellation Actions Signal Risk for Foreign Trademark Holders in China Since Russia’s invasion of Ukraine in 2022, foreign trademark owners have faced an increasingly volatile and unpredictable intellectual property environment. Forced to navigate a spider's web of sanctions, corporate exits, and deteriorating diplomatic relations, many international brands scaled back or fully withdrew from the Russian market. But in stepping back, some may have unknowingly exposed their trademarks to new and serious risks, chief among them, non-use cancellation actions, which are increasingly being initiated by opportunistic parties, including by Chinese entities. Why Russian Trademark Rights Still Matter Despite the widespread exodus of Western companies from Russia, many have opted to retain their trademark registrations. For these businesses, maintaining IP rights serves as a strategic hedge against uncertainty, a safeguard in the event that market conditions stabilize and reentry becomes viable. Allowing those rights to lapse is a dangerous gamble. Without active registrations, brands become vulnerable to trademark hijacking by opportunistic actors seeking to exploit the vacuum left behind. Even if a return to Russia isn’t on the immediate horizon, holding onto trademarks remains a critical defensive measure. Russia is still a sizable consumer market and manufacturing hub, with geographic proximity to key Eurasian regions. Losing control of your brand in such a pivotal territory could open the floodgates to counterfeiting, parallel imports, and long-term brand dilution. The Risk of Non-Use Cancellation Actions Owning a trademark registration alone is no guarantee of protection. Under Russian law, a trademark not used in commerce for three consecutive years becomes vulnerable to cancellation—a legal opening now being actively exploited through non-use cancellation actions. Crucially, “use” isn’t always straightforward: it typically requires genuine, ongoing commercial activity—not token efforts. This standard mirrors trademark laws in many other jurisdictions. While many high-profile challenges originate from Russian entities aiming to capitalize on well-known Western brands, Chinese companies have also entered the fray, filing non-use actions to claim dormant trademarks amid the chaos. Imagine a Chinese manufacturer or local competitor spotting an inactive foreign trademark and successfully claiming it through non-use procedures. This would give them the ability to produce and sell “genuine” lookalikes under your brand. This scenario is not hypothetical—it is already playing out. Without vigilance, brand owners may realize too late that a counterfeiter or competitor has become the de facto “legitimate” owner of their trademark in Russia. Russia as a China Trademark Preview China has long maintained a checkered record on IP enforcement. Although the country has made substantial strides in recent years—spurred by domestic reforms and international pressure—it remains a challenging landscape for foreign rights holders. Issues such as local protectionism, bureaucratic inertia, and uneven enforcement continue to complicate brand protection efforts. Notably, trademark squatting is a well-documented and persistent issue in China. Companies like Tesla, Apple, and Michael Jordan have fought high-profile legal battles to reclaim trademarks that were preemptively registered by local actors. These cases highlight how trademark laws can be strategically weaponized, especially when foreign businesses delay registration or fail to establish actual use. China also has a non-use cancellation regime. Under the Chinese Trademark Law, any trademark that goes unused in commerce for three consecutive years is vulnerable to cancellation. This creates a legal opportunity for third parties, including competitors and local opportunists, to petition for ownership of dormant marks. If geopolitical tensions escalate, and foreign companies scale back operations, such filings could become increasingly common. The Russian experience offers a stark warning: in times of instability, even well-maintained IP portfolios can become exposed. For companies with interests in China, the message is clear: Proactive, continuous use and vigilant enforcement of trademarks are essential to long-term brand security. What Brand Owners Should Do Now If your company holds trademarks in Russia and paused operations after 2022, now is the time to act. Inaction could lead to the loss of valuable IP assets. Here’s how to protect your rights: 1. Audit Your Trademark Portfolio Review registration dates and the last documented instances of use. Identify marks vulnerable to cancellation and assess whether remedial action is needed. 2. Seek Legal Counsel Consult with professionals familiar with Russian trademark law to evaluate your exposure. Understanding what counts as “use” is essential. 3. Maintain Through Re-Registration Even without ongoing operations, systematic renewals and extensions help preserve rights and prevent future litigation. 4. Monitor for Cancellation Actions Watch for non-use petitions, especially from unfamiliar or foreign entities. Early detection is key to timely response. 5. Implement Defensive Use Tactics Minimal, well-documented activity may satisfy legal use requirements: Limited e-commerce sales to Russian consumers Targeted digital or print advertising Use on packaging or promotional materials These must show genuine commercial intent—not just token gestures. 6. Leverage Strategic Licensing Licensing your trademark to a trusted local partner, even for nominal consideration, can constitute valid use. The licensee handles limited sales or brand visibility, while you retain legal control over the mark. This creates a use footprint without the burden of reestablishing full operations. Final Thoughts The Russian market may be unstable, but that does not make trademark protection there irrelevant. On the contrary, instability is when brand owners are most exposed. The key takeaway for companies with brand exposure in China, Russia, or other complex/risky jurisdictions: maintain active use of your trademarks, regularly review your portfolio, and don’t wait until a cancellation petition or hijacking attempt is already in motion. Our international trademark law team can help you assess your risks, strengthen your IP defenses, and safeguard your brand assets for the long term. Contact us today to ensure your portfolio is protected—before instability turns into vulnerability. Check Out Our China Law Services Share Twitter Facebook LinkedIn E-mail Comment Fred Rocafort Fred leads Harris Sliwoski’s intellectual property practice and is the coordinator of the firm’s international team. Much of Fred’s practice consists of helping cannabis businesses protect their brands. He also works with entrepreneurs and companies entering the Web3 space, a new frontier for IP law. Prior to joining Harris Sliwoski, Fred worked overseas for more than a decade, in both government and private sector roles. Fred is a regular contributor to the award-winning China Law Blog and Canna Law Blog. Fred began his career overseas as a U.S. consular officer in Guangzhou, China, where he advocated for fairer treatment of American companies and citizens in China and for stronger intellectual property rights enforcement. After entering the private sector, Fred worked at a Shanghai law firm as a foreign legal advisor and later joined one of the oldest American law firms in China, helping foreign companies navigate the Chinese legal environment. He also led the legal team at a Hong Kong-based brand protection consultancy, spending most of his time out in the field, protecting clients against counterfeiters and fraudsters in Greater China, Southeast Asia and Latin America. In addition to his IP work, as a native Spanish speaker, Fred works closely with different Harris Sliwoski teams on Latin America and Spain matters. Fred also provides advice to cannabis industry participants and other businesses on import and export transactions. Fred is an ardent supporter of FC Barcelona—and would be even in the absence of Catalan forebears who immigrated to Puerto Rico in the mid-1800s. 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