In a February 24, 2025 Show Cause Order against Shenzhen Seller Growth Network Technology Co., Ltd. et al., the United States Patent & Trademark Office (USPTO) announced that about 42,000 trademark registration decisions might be vacated and the application or post-registration proceedings reopened for a new determination to be made. For an initial registration decision, the registration will be cancelled and restored to pendency under its application serial number. The reopened proceeding is a proceeding that may be subject to termination.

The USPTO stated the “integrity of the USPTO’s examination and decision-making processes were tainted at their core and the USPTO’s registration decisions were premised on false representations and assumptions.”

This show cause order supplements two prior show cause orders dated September 7, 2022 and November 27, 2023. In the first show cause order, the USPTO stated that Seller Growth practiced “unauthorized practice before the USPTO in trademark matters and providing false, fictitious, or fraudulent information in trademark submissions with the intent to circumvent these rules.”

The USPTO also stated, “that the evidence indicates that Respondents are not qualified practitioners under 37 C.F.R. §§ 11.1 and 11.14, yet still engaged in the unauthorized practice of law through the use of names and bar credentials of U.S.-licensed attorneys, intentionally provided for the purpose of concealing Respondents’ involvement and circumventing USPTO rules.” Further, “Respondents’ efforts to mask their participation in the unauthorized practice of law include improperly entering the electronic signatures of at least three U.S.-licensed attorneys and providing false, fictitious, and/or fraudulent attorney information in trademark filings in violation of USPTO Rules.”

At the time, Seller Growth responded that

The USPTO is currently conducting a routine review of the trademark agency industry in China. As the largest international intellectual property SaaS platform in China, our company has been listed in the first batch of inquiries to undergo routine review. It is currently undergoing a normal review, and there is no so-called sanctions by the USPTO, and the relevant rumors are all rumors.

This inquiry will not have any impact on the customers we have served and future customers. Trademarks can continue to be used normally.

Maliciously spreading rumors and smearing our company has seriously damaged the legitimate rights and interests of our company. Please stop the rumors and slander immediately and delete the untrue information that has been released. Otherwise, our company will take legal measures to pursue it to the end.

On February 28, 2025, the Shenzhen Intellectual Property Protection Center provided advice for those affected:

Recently, the Shenzhen Intellectual Property Protection Center (hereinafter referred to as the “Shenzhen Protection Center”) monitored an incident of suspected illegal agency for U.S. trademark applications .

 

On February 24, 2025, the United States Patent and Trademark Office (hereinafter referred to as the “USPTO”) issued a supplementary order to show cause and a notice that the USPTO proposes to reconsider its registration decision on its official website (SUPPLEMENTAL ORDER TO SHOW CAUSE AND NOTICE THAT THE USPTO PROPOSESTO RECONSIDER ITS REGISTRATION DECISIONS), accusing Shenzhen Seller Growth Network Tech. Co., Ltd. and two affiliated companies (1, Shenzhen Qianhai Bishengdao; 2, Shenzhen Qianhai Be-Victory Network Tech. Co., Ltd.) [The English names of the two companies are actually different English translations of the same entity, and have now been renamed Chenhaiyun (Shenzhen) Technology Co., Ltd.] (hereinafter referred to as the “involved institutions”) of circumventing due review procedures through improper means such as forging signatures and providing false attorney information, in violation of U.S. trademark law.

 

I. Basic Situation of the Incident

 

The USPTO notified the relevant institutions and enterprises that own the trademarks involved through a supplementary order to show cause that it plans to cancel the registration status of the relevant trademarks in the administrative sanctions procedure against the relevant institutions. The application dates of the trademarks involved in this case span the period from 2010 to 2023, involving 41,741 trademarks. At the same time, this supplementary order to show cause set a deadline (March 26, 2025), requiring the relevant entities to provide written evidence and responses to the preliminary sanctions, otherwise they may face cancellation procedures. The list of trademarks involved is detailed in the attachment.

 

2. Response Strategies

 

The enterprises involved can check according to the attachments, assess risks, and take timely measures to avoid affecting normal operations and trademark layout. They can re-entrust qualified agencies to submit applications, but they must strictly comply with regulations and avoid providing false information. The trademark can be redesigned. If the resubmitted trademark application is consistent with the trademark involved, the USPTO may raise the review standards and extend the review period for such applications.

 

In addition, the companies involved can refer to the research reports and practical guidelines previously released by the Shenzhen Protection Center, such as the “U.S. Trademark Opposition and Revocation System”, “Amazon U.S. Trademark Registration Guidelines”, and “Cross-border E-commerce Intellectual Property Compliance Guidelines” to obtain more guidance information on trademark registration and protection.

 

III. Advice on Trademark Application in the United States

 

There are some differences between trademark applications in the United States and in China. When applying for a trademark in the United States, trademark applicants should pay attention to the following points:

 

First, carefully select the agency. It is recommended that enterprises entrust a formal and professional intellectual property agency to apply for overseas trademarks, or directly entrust an American lawyer to submit. Regardless of direct or indirect entrustment, you can search and query through the official US website to verify the true identity of the American attorney to prevent the risk of the US trademark being revoked due to non-compliance with the registration. The cost of US trademark application generally includes official fees, US attorney fees and agency service fees. Enterprises should not blindly choose an agency because of the low price.

 

Second, choose the application category reasonably. The US trademark classification is more detailed than that of China. Applicants should carefully choose the categories of goods and services. In the registration process and later maintenance, the submission of evidence of use is involved. If the company selects too many categories in the early stage and fails to provide evidence of use within the deadline, the trademarks in the relevant categories will face the risk of being revoked, thereby generating unnecessary layout costs. Therefore, companies should reasonably choose the categories of trademark applications based on their own business development plans.

 

Third, ensure that the evidence of use is in compliance with regulations. According to the regulations of the USPTO, evidence of use should be submitted 5-6 years after the trademark is authorized and when it is renewed after 10 years. It is recommended that enterprises retain the actual use evidence of all products and ensure that the trademarks to be submitted must be trademarks that are actually used or intended to be used. False evidence of use cannot be created for the purpose of saving money or speeding up, otherwise it will constitute a false application and increase the risk of trademark rejection or revocation.

 

If enterprises encounter the above-mentioned problems, it is recommended to understand and verify the relevant situation. If further guidance is needed or if there are any questions during this process, they can contact the Shenzhen Protection Center at any time.