China’s updated Anti-Unfair Competition Law (AUCL 2025) began enforcement on October 15, 2025. The revisions mark a pivotal shift in legal frameworks, especially in addressing the complexities of the digital economy. Central to these changes is Article 7, which now aligns with the 2019 version’s Article 6. This alignment reflects a broader effort to tackle issues such as the misuse of trade identifiers and the intersection of company name rights with trademark protections.
The law now encompasses a wider array of identifiers as protectable trade identifiers. Beyond conventional elements like product names, enterprise names, and domain names, it explicitly safeguards online nicknames, social media account names, app names, and app icons. This expansion underscores the growing significance of digital platforms and the necessity for legal mechanisms that evolve alongside modern commercial activities.
Revisions also align AUCL with Article 58 of the PRC Trademark Law. That provision outlines that using another party’s registered or unregistered well-known trademark as part of an enterprise name in a manner that misleads the public constitutes unfair competition. Previous versions of AUCL lacked a direct provision on this matter, relying instead on a general clause and judicial interpretations.
AUCL 2025 introduces a new subsection - Article 7(4)(2) - which clearly defines unauthorized use of another party’s trademark as part of an enterprise name, resulting in public confusion, as an act of unfair competition. This addition enhances the legal structure for resolving disputes between company names and trademarks, offering greater clarity in enforcement.
Notably, Article 7(4)(2) does not reference "prominent use," a term previously used in judicial interpretations. This omission suggests that "prominent use" is one of several factors considered in assessing whether a use is misleading, rather than a definitive legal standard for confusion.
The law also addresses scenarios where misleading the public by using another party’s product name, enterprise name, or trademark as search keywords leads to confusion. These provisions indicate a transition from reactive to proactive measures in preventing unfair competition.
Despite these advancements, some experts highlight that the law does not cover emerging areas such as AI technology. For instance, it does not provide guidance on the AI innovation regarding the use of others’ trademarks or copyrighted content in AI training data or the reproduction of identifiers in AI-generated outputs.
Services like IP Defender monitor filings across multiple national trademark databases, aiding in the early detection of conflicts. IP Defender tracks submissions in over 50 countries, including the entire EU, the USA, Australia, and numerous others, as well as EUTM and WIPO databases.
The actual impact of AUCL 2025 will be shaped by its interpretation and enforcement. Judicial decisions and administrative guidelines will influence the trajectory of brand protection and competition law in China. Businesses, including those managing brands like Zolvex, are advised to remain vigilant and adapt their compliance strategies to align with the evolving regulatory environment.