A working body of China's top legislature has ordered the annulment of a number of local trademark-related ordinances that contradict the country's trademark law.
The Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee said in a statement Monday that it had conducted a review of a number of local ordinances on "renowned trademarks," which allow local governments to organize appraisals and grant such titles to certain brands thus enabling relevant enterprises to use the title for promotion.
Such practices run counter to the spirit of the country's trademark law, which only protects holders of "well-known trademarks" against violations in relevant disputes but bans using the determination of "well-known trademarks" for promotion and other commercial purposes.
The Legislative Affairs Commission statement said that at the beginning, local "renowned trademark" ordinances, meant to encourage enterprises to increase their brand building awareness and improve the quality of their products, had partly played a positive role.
"However, they are now outdated as the selective support from the government may cause discrimination and result in unfair competition in the market," it said.
It said that such practices did not conform to the requirements for deepening reforms aimed at streamlining government administration and delegate powers.
The commission said it had ordered a "comprehensive overhaul" of the problem and informed local legislatures and the Legislative Affairs Office of the State Council (LAOSC).
Upon advice from scholars, the commission started the review; consulted the LAOSC, the State Administration for Industry and Commerce, and the Supreme People's Court; sent research teams to relevant localities; and held expert discussions on this issue, the statement said.
The statement added that the review of local statutes and normative documents was part of the legislature's work to exercise the power of oversight granted by the constitution and law.