When goods are manufactured in China by an OEM factory for export, the foreign buyer is not always the owner, in China, of the trademark that is affixed on the goods.
Then, a serious question arises: what if the trademark is registered in the name of a third party, and such third party decides to sue the factory for infringement, and stop the exportation of the goods?

Xiaomi owns the registered trademarks “小米” (Chinese characters of Xiaomi) and “IMG_256” in class 9, designating goods including “laptop, mobile phone, videophone” and “mobile phone” respectively. The said trademarks were registered on April 28, 2011, and July 7, 2012. Through extensive and long-term use and promotion, these trademarks have been recognized by Chinese judiciary and the CNIPA as having reached well-known status on various occasions.

China started to work on the third amendment to its “Trademark Law” in 2003 (the second amendment was adopted in 2001 when China joined WTO). After six years of research, investigation and soliciting opinions and comments from the public about many drafts, the State Administration for Industry & Commerce, submitted to the State Council a final draft on November 18, 2009.