Foreign brand owners have often questioned whether they need a trademark registration in the PRC when engaging PRC factories for Original Equipment Manufacturing (OEM) activities. Previously, a pure OEM arrangement with proper authorisation from the owner of a trademark registration in the exporting country, would generally not be considered infringement of identical or similar PRC trademarks. However, in the recent judgment handed down in Honda Motor Company Ltd and Chongqing Hengsheng Xintai Trading Co Ltd. (the HONDAKIT case), the Supreme People’s Court (SPC) seems to have changed its position on whether branded products, produced through OEM in the PRC, but intended to be exported elsewhere for sale, constitutes trademark infringement. In light of the HONDAKIT case, brand owners may need to revisit the importance of securing trademark registrations in the PRC. LEARN MORE