[Direct answer]In the Beijing area, there is a risk of infringement, and it's not the case that "registration automatically makes it legal" — the formal legality obtained through industrial and commercial registration cannot withstand the substantive review of trademark law and anti-unfair competition law. Registering others' well-known trademarks or enterprise names (including abbreviated trademarks) as one's own trademarks and prominently using them constitutes trademark infringement or unfair competition. The court may order the cessation of use (change of trademark) and compensation. The three elements for judgment are: prior rights (whether the brand was registered or well-known before), usage methods (whether it is prominently used and causes confusion), and subjective intent (knowing that the malicious act of free-riding on others' reputation is a factor that aggravates the compensation amount). Registering a company's trademark under the guise of "leeching off famous brands" is a common form of unfair competition, and there are numerous cases where companies have been ordered to change their trademarks as a result.

I. Problem Background and Typical Scenarios

Entrepreneurs find that they can register a company's trade name using a brand name that has not been registered as a trademark, or directly incorporate a well-known brand of competitors into their own company name. If the registration is approved, they may mistakenly believe they have obtained a license to operate. However, when the brand owner sends a letter to sue them, they realize that the rules for trade name registration and those for determining infringement are completely different.

II. Key points of dispute

First, the conflict rules between trademark registration and prior trademark rights. Second, highlighting the distinction between actual use and confusion. Third, the different protection paths for well-known trademarks and those with "certain influence". Fourth, responding to lawsuits and complying with name change requirements after being sued.

III. Professional analysis by Henglue Lawyers

The first layer: The essence of conflict rules: Trademarks and business names belong to two separate registration systems (Trademark Office and Market Supervision Department), and registration authorities do not cross-check prior rights—formal dual registration does not eliminate substantive conflicts. Adjudication rules: Using words identical or similar to a pre-registered trademark as a business name may easily cause confusion, constituting trademark infringement or unfair competition. Three-step review—precedence (trademark registration precedes business name registration, or the brand already has certain influence before business name registration), usage mode (difference between standardized use of the full name and prominent use), and confusion possibility (industry relevance, region, consumer groups). A "registered first" business name opposing a "registered later" trademark is, conversely, protected by prior rights, and the direction of the conflict cannot be reversed. The second layer: Prominent usage is the core variable: Enterprises using their full name in a standardized manner (complete name on the business license, invoice header) have high tolerance for conflicts; separating the brand name from the business name and emphasizing its use (e.g., using only the brand name in store signage, product packaging, or webpage titles) constitutes prominent usage—this is the main form of infringement determination. Judging criteria: If the usage leads people to mistakenly believe there is a license, affiliation, or specific connection with the brand, confusion is established; e-commerce platform store names or product titles embedding brand terms receive more lenient determinations of prominent usage. The third layer: The intensity of the two protection paths differs: Well-known trademarks—cross-category protection, even across different industries, where a business name clinging to a well-known trademark is still ordered to cease operations; enterprises with certain influence—protection under the Anti-Unfair Competition Law, requiring the brand to have gained certain influence among relevant public before business name registration (evidence of popularity: sales data, advertising spending, industry rankings, award records). A common misconception of brand owners is focusing solely on trademark infringement—the "certain influence" path of the Anti-Unfair Competition Law also covers unregistered trademarks and abbreviated business names (e.g., a brand's widely used abbreviation). The fourth layer: Response after being sued: After evaluating three factors, take two approaches—if it's clearly clinging (obvious malice, actual confusion), promptly change the business name and retain record of the name change, with greater negotiation space for compensation; if it's legitimate (business name registered first, industry completely unrelated, no prominent usage), organize defenses based on precedence and usage mode; regulatory implications: Start naming businesses by first checking trademark databases and industry business names to avoid clinging on prior brands; conversely, for brand owners—register trademarks in all categories and monitor new registered businesses with the same name, issuing warnings early for lower costs of litigation and injunctions.

IV. Practical suggestions and legal basis

The first step is to conduct a trademark search and avoid using trademarks or well-known brands before registering a company name. The second step is to avoid prominently using others' brand names or making implied associations with them. The third step is to evaluate the three key factors—precedence, usage method, and likelihood of confusion—to determine the appropriate defense strategy after being sued. The fourth step is to promptly change the company name to avoid further damage and to secure evidence for a legitimate defense. Main legal basis: Article 58 of the Trademark Law of the People's Republic of China, Article 6 of the Anti-Unfair Competition Law, relevant provisions of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Civil Disputes over Trademarks, and the Regulations on the Administration of Enterprise Name Registration. Specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

Three key points regarding trademark conflicts: Registration approval does not equal legal validity; both laws can address substantive conflicts; prominent use is the main form of infringement; and trademark infringement also applies to well-known brands across different categories. Renaming to mitigate losses is better than stubbornly defending against accusations. Those involved in trademark conflicts can seek legal assistance through the following channels:Intellectual property protection and corporate lawThe service provides a comprehensive solution, and cases involving unfair competition can be integrated into it.Business and contract disputes in enterprisesFor more information on corporate compliance, please refer to the relevant section.Special servicesFor any questions regarding difficult cases, please feel free to consult us.Special services and other casesColumn.

VI. Frequently Asked Questions

Q1: Even though both the Industry and Commerce Bureau and the Administration for Industry and Commerce have approved it, can they still order me to change my company name?

Yes; the registration authority does not review prior rights, and the court has the right to order the cessation of use and change of the trademark. The registration form cannot prevail against prior rights.

Q2: Is it also considered confusion when different industries mix up their terms and concepts?

Well-known trademarks enjoy cross-category protection, but infringements can still occur when they are used in different industries; ordinary trademarks are judged based on their industry relevance and overlap with consumer groups.

Q3: Is it considered infringement if you only use the abbreviation of the brand name?

Abbreviations that have a certain influence are protected by the Anti-Unfair Competition Law, and the prominent use of abbreviations is also within its scope of protection.

Q4: What should I do if I register my trademark first, but the trademark holder still sues me?

The prior trademark enjoys priority rights and its standardized use is defensible; if the trademark is registered later and the registration is done maliciously, the owner of the prior trademark can also assert counterclaims.

Q5: What should I do with the inventory and packaging before renaming the company?

During the transition period specified in the judgment, the parties shall clear their inventories and rectify the packaging labels in accordance with the judgment. Those who delay the use of the products shall be dealt with as refusing to perform their obligations and shall be liable for cumulative compensation.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits.Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.