The Trademark Squatting Trap: IP Protection and Anti-Cloning Strategies for Foreign Games in China

When an indie hit or AAA title gains traction on Steam or Western social media, the first people in China to notice are rarely the players. Instead, it is the professional trademark squatters and “Reskin” (Clone) game studios.

Many foreign developers preparing to enter the Chinese market (or seeking a local publisher) are shocked to discover that their game’s English name, Chinese translation, and even their logo have already been registered by an unrelated Chinese company. Worse still, domestic Android app stores might already be flooded with 1:1 mobile “clones” monetizing their identical gameplay and UI.

This article strips away complex legal theory to address the core IP risks foreign developers face in China and provides actionable, practical defenses.

1. The Lethal “First-to-File” Rule and Trademark Squatting

China’s trademark system operates strictly on a “First-to-File” principle. This is fundamentally different from the “First-to-Use” system recognized in the United States and some other jurisdictions.

The Legal Reality: In China, whoever submits the trademark application to the China National Intellectual Property Administration (CNIPA) first owns the exclusive rights to that mark. Even if you have operated your game globally for five years and have millions of players, if you haven’t registered your trademark in China, you have no local rights. If a squatter beats you to it, using your own game’s name in China constitutes “trademark infringement” on your part.

The Squatter’s Business Model: Professional squatters use web scrapers to monitor Steam, the App Store, and Western gaming expos (like E3 or Gamescom). Upon spotting a game with potential, they immediately file a trademark in China at a negligible cost (around $50 USD). Later, when the original developer tries to enter China, apply for an ISBN, or open an official Weibo account, the squatter emerges, demanding tens or hundreds of thousands of dollars in “ransom” to transfer the mark.

Practical Advice:

Register Early, No Local Entity Needed: Foreign developers do not need a Chinese corporate entity to register a trademark. You can apply via the Madrid Protocol or use a local Chinese IP agency.
Dual-Language Registration: Do not just register your English name. You must register an official “Chinese translation.” If you don’t designate a Chinese name, local media and players will invent a nickname for your game—and squatters will register that nickname.
Core Classes: Game products must be registered under at least Class 9 (Downloadable Computer Programs) and Class 41 (Online Gaming Services).

2. Combating “Reskinned” Clones: Copyrights and the Anti-Unfair Competition Law

When a Chinese studio “reskins” your game—copying the core gameplay loop, numerical balancing, and UI layout while swapping out the art assets—enforcing your rights is incredibly challenging.

Why is “Gameplay” hard to protect via Copyright?

Traditional copyright law follows the “Idea-Expression Dichotomy.” Basic game rules and mechanics are generally considered “Ideas” and are not protected. Only specific art assets, music, and source code are considered “Expressions.” Therefore, if a cloner rewrites the code from scratch and redraws the art, but copies your exact mechanics, a traditional copyright infringement lawsuit will likely fail.

The Breaker of Clones: China’s Anti-Unfair Competition Law

In recent years, Chinese courts have increasingly applied the Anti-Unfair Competition Law to gaming clone cases. If two games share a “substantial similarity” in their User Interface (UI), interaction design, numerical economy systems, and the specific combination of core elements that causes player confusion, courts will rule that the cloner violated commercial ethics, constituting unfair competition.

The Prerequisite for Enforcement: Software Copyright (软著)

While copyright is generated automatically upon creation in China, practically speaking (whether complaining to app stores or filing a lawsuit), a Computer Software Copyright Registration Certificate issued by the National Copyright Administration is the most direct and indispensable legal proof of ownership. Furthermore, obtaining this certificate is a mandatory prerequisite for applying for a Game License (ISBN) in China.

3. The Anti-Piracy Action List

If you discover your game has been cloned or your trademark squatted in China, complaining on Twitter is legally meaningless. Take the following actions:

File Trademarks at Inception: Before your first public reveal (e.g., dropping your first trailer), file your trademark applications in Mainland China (Classes 9 & 41, both English and Chinese names).
Register Your Software Copyright: Once your codebase is relatively stable, apply for Chinese Software Copyright Registration via an agency. Foreign entities are fully eligible to apply.
Utilize Notice and Takedown: Major Chinese platforms (TapTap, Bilibili, WeChat Mini-Games, Douyin/TikTok) have robust IP complaint portals. If you possess a valid trademark or software copyright certificate, accompanied by a basic side-by-side comparison, platforms will typically remove the infringing clone within a week.