Theory Of Foreign Mergers And Acquisitions In The Legal Protection Of Well-known Trademark In China

Nowadays, foreign capital is keen on purchasing domestic enterprises which is the forefront of the industry. This trend has intensified. Although M&A is a normal phenomenon in the laws of the market and capital operation, it still needs to be noted that foreign mergers and acquisitions tend to target the Chinese market share of high-effective companies, which hold leading position in the industry. It’s not good to the related industries in China to stand out in the global competition. And also, Chinese enterprises may become the production base for some foreign brands and lose their independence. Meanwhile, the reason to most Chinese entrepreneurs who wants to sell their enterprise is that they are urged to the abundant capital, advanced technology and experienced management. It should be noted that foreign investors’ intention has not been fully commercial, but with a clear strategic point through M&A and other means to enter into the key enterprises in order to reap extraordinary profits. Because our lack of vigilance, it’s not uncommon that many well-known trademarks has disappeared through M&A. Moreover, some industries have been foreign investment dominates, and domestic enterprises are in adverse environment by foreigners’monopoly. Facing this circumstances, some regulation stipulates that the acquisition of domestic enterprises which involving well-known trademarks’ actual transfer need a mandatory reporting requirements. But it has not been put in practice. The approving authority has never concern on the well-known trademarks no matter the case is approved or not. As a whole, the reality calls for a corresponding system, but the existing system has not been effectively implemented, this status quo is well worth considering. This invokes my thought.This article argues that protecting Chinese well-known trademarks in M&A has the necessity and rationality. It’s the need of protecting national security and value of the well-known trademarks. Meanwhile, it’s the need of foreign M&As’nature of public law and existing legal provisions give support to it. The current legal system has many deficiencies in legal system, foreign transfer of censorship and the well-known trademark assignment and assessment system. Therefore, the author puts forward her own viewpoint about how to improve the legal protection of well-known trademark.