Companies with international operations frequently receive emails from China warning that third parties are about to register their corporate name. These messages typically come from purported domain registrars or Chinese intellectual property firms, stating that another company wishes to use your name in local domain extensions or as a trademark.
While some trademark notices do identify real filings with authentic deadlines, the vast majority of these communications are fraudulent pitches or aggressive sales tactics. Understanding the mechanics of these emails is crucial to protecting company assets without incurring unnecessary costs.
How the Scheme Works
The domain-focused model has circulated for more than two decades. The sender usually claims that a company has applied to register your corporate name, product name, or brand under Chinese domain extensions, such as .cn or .中国. In some versions, the emails also include additional Asian domains, such as .hk.
The purported registrar claims to have uncovered a conflict with your existing name and asks whether the applicant is a distributor, business partner, or authorized representative of your company. The message suggests that there is only a brief window to block the registration. If the foreign company objects, the sender offers to register the domains on its behalf, often quoting inflated prices or demanding multi-year financial commitments.
Other versions of the message claim that the domains have already been registered and offer to transfer ownership for a fee. Historically, a pattern emerged where some of these emails arrived one or two weeks after executives returned from business trips to China, suggesting potential targeted distribution of the messages.
The Reality of Domain Registrations in China
These emails are essentially commercial sales pitches disguised as brand-protection warnings. Standard domain registration is not a trademark clearance process in which the registrar must obtain permission from all companies that might hold rights to a similar name.
The China Internet Network Information Center (CNNIC), the responsible governing body, generally operates .cn registrations on a first-come, first-served basis, subject to applicable registration requirements and restrictions. An unknown entity’s claim that it must consult your company before processing a third party’s application is not standard procedure, which undercuts the credibility of the alleged inquiry.
Furthermore, bundling multiple extensions in the same message is typically a tactic to heighten perceived urgency. The .cn extension belongs to mainland China’s domain system, whereas .hk is Hong Kong’s country-code domain, operating under entirely separate rules. Listing them together does not establish a genuine application.
Risks and Financial Consequences
Companies that chose to pay the senders of these messages reported expenses ranging from US$ 500 to US$ 3,500. The outcomes of these payments illustrate the risks involved:
- Approximately one-third of the companies were simply ignored after payment, with no service provided.
- Another third was initially ignored and, a few weeks later, faced extortion attempts where third parties demanded ransoms to release the trademark, typically in amounts of US$ 10,000 or more.
- Only the final third paid an actual law firm or trademark agency, which opposed the filing as promised and then submitted a formal trademark application on behalf of the company.
Practical Recommendations
Upon receiving emails warning about domain or trademark registrations in China, the primary recommendation is not to reply to the sender and not to make any payment. Companies should adopt an analytical approach and independently verify the veracity of the claim.
It is possible to verify domain registration status or have the trademark claim reviewed by trusted professionals. Above all, the situation should serve as a reminder for the company to proactively assess whether its business operations require formal intellectual property protection in the Chinese market, anticipating real issues.
This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.
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