View on Provisions of the State Administration for Industry and Commerce on the Procedures for the Registration of the Pledge of the Exclusive Right to Use a Registered Trademark (the “Provisions”) came into effect since November 1st, 2009, after which the former Procedures for the Registration of the Pledge of the Exclusive Right to Use a Registered Trademark (the State Administration for Industry and Commerce Gong Shang Biao Zi [1997] No.127) shall be repealed.

Pursuant to the Provisions, natural persons, legal persons or other organizations shall comply with the following regulations when they handle the pledge of the exclusive right of registered trademarks pledge:

1. The pledgor and the pledgee shall conclude a written contract.

In accordance with the Provisions, natural persons, legal persons or other organization shall conclude a written contract when they handle the pledge of the exclusive right of registered trademarks pledge.

In general, the contract of the pledge of the exclusive right to use a registered trademark shall contain the following content:
(1) The names and addresses of the pledgor and the pledgee;
(2) The type and amount of the debt guaranteed;
(3) The period for the debtor to repay its debt; 
(4) The list of the registered trademarks pledged (specify the registration number, type and the period for the exclusive use of the registered trademarks),
(5) The scope of the guarantee;
(6) Other matters agreed with the party concerned.

2. Application for the pledge of the exclusive right of registered trademarks pledge shall be jointly proposed by the pledgee and the pledgor.

In accordance with the Provisions, application for the pledge of the exclusive right of registered trademarks pledge shall be jointly proposed by the pledgee and the pledgor. The pledgee, and the pledgor may apply to the Trademark Bureau directly by themselves or entrusting an trademark agent. The foreign natural person or foreign enterprise with no habitual residence or business location in China, shall entrust an agency to filing an application of the pledge of the exclusive right of registered trademarks pledge.

When going through the registration formalities for the pledge of the exclusive right to use a registered trademark, the pledgor shall register the pledge of the same or similar trademark registered for the same or similar product/ service. The pledge contract and the application for pledge registration shall specify the trademark registration number of the pledge.

3. The documents required for the application of the registration.

The following documents shall be submitted for the application of the registration of the pledge of the exclusive right to use a registered trademark:
(1) The Application for the Registration of the Pledge of the Exclusive Right to Use a Trademark signed or sealed by the applicant;
(2) The photocopies of the subject qualification certificates or the natural person identity certificates of the pledgor and the pledgee;
(3) The master contract and the contract of the pledge of the exclusive right to use a registered trademark;
(4) For direct application, the power of attorney and the identity certificate of the person being entrusted shall be submitted. If a trademark agency is entrusted to file the application, the mandate for the trademark agency shall be submitted;
(5) The photocopy of the registration certificate of the registered trademark pledged;
(6) The value appraisal report of the pledged exclusive right to use a trademark. If both the pledgee and the pledgor have agreed unanimously on the value of the pledged exclusive right to use the trademark, and have submitted the relevant written approval document, the applicant is allowed not to submit the value appraisal report;
(7) Other materials required to be provided.
If the above documents are in foreign languages, Chinese translation copies shall be submitted at the same time. The Chinese translation copies shall be signed and sealed by the translation agency and the translators for confirmation.

4. The circumstances not to be accepted for registration.

In accordance with the Provisions, upon the occurrence of any of the following, the pledge of the exclusive right of registered trademark shall not be permitted by the Trademark Bureau:

 
(1) If the name of the pledgor is not the same as the name recorded in the files of the Trademark Bureau, and the pledgor fails to provide relevant evidence to prove that it is the holder of the right of the registered trademark;
(2) The execution of the contract violates the mandatory provisions of the law and regulation;
(3) The exclusive right to use the trademark has been revoked, cancelled or has not been renewed upon the expiry of the effective term;
(4) The exclusive right to use the trademark has been seized and frozen by the people's court;
(5) Other issues not meeting the conditions of the pledge.