A guide for Chinese companies on building brands in Australia

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2 min read

Understanding the nuances of the Australian Trade Marks system is critical for Chinese companies seeking to establish a presence in Australia. Unlike China's "first-to-file" approach, Australian law recognises trade mark rights through either first registration or first use, known as "common law trade mark rights." This means that Chinese companies might already have some level of protection in Australia through sales, but it also poses the risk of others accruing rights to similar marks.

Key considerations for Chinese companies include the choice of brand representation, particularly the decision between Chinese characters, English translations, or a combination. Many Chinese firms must consider English versions to register trademarks in Chinese characters, potentially limiting their appeal to a broader Australian audience. Given the Australian Chinese community's diversity and evolving language capabilities, Chinese companies should develop and register English versions of their brands to maximise appeal and market penetration.

It's also crucial to understand that trade mark registration doesn't guarantee enforceability. The Australian Trade Marks Office's examination process might sometimes need to pay more attention to the distinctiveness of Chinese language marks, making the potential registration of non-distinctive marks vulnerable to cancellation.

Another aspect to consider is Australia's parallel importation laws, which allow the importation of trademark-bearing goods if the mark was applied with the owner's consent. This could complicate control over Chinese products' distribution and market presencein Australia.

For licensing and franchising, Chinese companies should draft agreements carefully, ensuring quality control provisions are included to protect the trade mark's integrity and to prevent the agreement from inadvertently falling under Australia's complex franchising law.

In summary, while opportunities abound for Chinese companies in Australia, navigating the trade mark landscape requires a strategic approach, considering linguistic diversity, legal nuances, and market control mechanisms to establish and grow their brands successfully.