China is breaking with tradition as its Trademark Office has given the green light to trademarks associated with NFTs and metaverse services, a significant shift from its previous focus on standard goods and services.

In the past, the Chinese Trademark Office had a conservative approach and was slow to embrace digital advancements. This recent change suggests a more accommodating stance, although it may be temporary. The approvals could serve as a precedent before the Office establishes a definitive list of standard digital and virtual goods and services.

This decision has benefited major luxury watch brands such as TISSOT, LONGINES, and RADO, who secured registrations for marks filed directly as national applications. Notably, this is good news for U.S. companies because the Chinese trademark system doesn’t require actual use before registration, and Chinese national registration doesn’t depend on U.S. registration, unlike the requirements of the Madrid Protocol.

A closer look at the approved applications reveals that the Office has allowed more detailed descriptions. For example, Coty’s registration for its nail polish brand, SALLY HANSEN, includes a notably lengthy description covering “downloadable computer software for creating, producing, and modifying digital animated and non-animated designs and characters.”

However, this newfound flexibility may not be permanent, and the Chinese Trademark Office could return to its previous strict requirements. Therefore, U.S. applicants should stay vigilant and consult the list of approved goods and services for their filings.

This development takes on added significance given the Chinese government’s efforts to promote domestic digital tokens and NFT transaction platforms. Understanding how and where these marks should be used under Chinese trademark law is crucial, especially to avoid potential challenges related to non-use.