China’s third amendment to the Anti-Unfair Competition Law (AUCL), effective October 15, 2025, marks a significant evolution in how intellectual property (IP) disputes are addressed in the digital space. The law now explicitly safeguards online usernames, app names, icons, and social media account identifiers, recognizing their role in brand identity and consumer recognition. This expansion reflects the growing importance of digital assets in commerce and underscores the need for businesses to rethink their IP strategies in a rapidly evolving online marketplace.
Key Reforms and Implications
Expanded Protection for Digital Identifiers
The AUCL now explicitly protects online usernames, new media account names, app names, and icons, alongside traditional domain names and website names. These identifiers are treated as brand assets if they have “a certain influence,” meaning their misuse can lead to consumer confusion about product origins or brand associations. For businesses, this means digital branding elements - once considered peripheral - are now central to IP protection strategies.
Codification of Confusion Acts
The amendment explicitly prohibits actions that create confusion, such as using a registered trademark as a company name without authorization or manipulating search keywords to mislead consumers. These provisions align with existing trademark laws and clarify how such practices can be legally challenged.
Liability for Aiding Infringement
The law now holds platforms accountable for enabling unfair competition. Platforms must avoid providing logistical or technical support - such as warehousing, digital infrastructure, or concealment - that facilitates market confusion. Selling infringing goods is also subject to administrative penalties, with exceptions for sellers who can prove legitimate sourcing.
Broadened False Advertising Rules
The definition of false advertising now includes “other operators,” expanding its application to B2B disputes. Fabricated user reviews and fake transactions are explicitly banned, reinforcing efforts to combat misleading promotions.
Strengthened Platform Obligations
Platform operators must integrate fair competition rules into their policies, establish mechanisms for resolving disputes, and take swift action against unfair practices. This shift positions platforms as active gatekeepers of market integrity rather than passive hosts.
Enhanced Remedies and Fines
The law introduces flexibility in calculating damages, allowing compensation based on either the rights holder’s losses or the infringer’s profits. Administrative fines have increased, with severe violations now carrying penalties up to RMB 5 million. This provides enforcement authorities greater discretion to address high-impact cases.
Extraterritorial Reach
The AUCL now applies to acts occurring outside China that disrupt domestic market order or harm local businesses. This provision empowers authorities to address cross-border issues such as digital infringement, brand impersonation, or unfair advertising on foreign platforms.
Navigating the New Landscape
For businesses operating in or targeting China, the amendment signals a need to strengthen digital IP monitoring, update brand strategies, and ensure compliance with stricter enforcement measures. Trademark owners must proactively track online activity to prevent confusion and protect their assets in an increasingly interconnected digital economy. The law’s emphasis on cross-border enforcement also highlights the importance of global IP strategies in safeguarding brand integrity.