The concept of `商标` is at the heart of China's rapid economic transformation. Historically, a business's reputation was tied to its 字号 (zìhào), its traditional, established shop name, which was built on generations of trust and community standing. In modern China, the Western legal concept of the `商标` has become paramount. This shift reflects China's integration into the global economy and its growing emphasis on intellectual property (IP) rights (`知识产权 zhīshì chǎnquán`). A key cultural and business phenomenon to understand is “trademark squatting” (抢注商标 qiǎngzhù shāngbiāo). China operates on a “first-to-file” system, meaning whoever registers the `商标` first owns it, regardless of who used it first elsewhere. This has led to many cases where foreign companies entering China find their brand name has already been registered by a local entity. This makes understanding and proactively registering your `商标` a critical first step for any business in China, highlighting a significant difference from the “first-to-use” principles common in Western countries like the United States.
`商标` is used in both formal legal/business contexts and informal daily life.