State Administration for Industry and Commerce "stopping" local government trademark identification

Abstract According to the voice of the economy, "Tianxia Finance", after the sensational "Cable Event" in Xi'an, the State Administration for Industry and Commerce has officially "stopped" the local government to evaluate famous trademarks and well-known trademarks...
According to the economic voice "Tianxia Finance", after the sensational Xi'an "cable incident", the State Administration for Industry and Commerce has officially "stopped" the local government to evaluate famous trademarks and well-known trademarks.

Government assesses trademarks for “offside” risk
Zhang Mao, director of the State Administration for Industry and Commerce, stressed that whether a trademark brand is famous or not is not the government's final say.
Zhang Mao said: "We must carefully learn the lessons of Xi'an 'cable incident', standardize well-known trademarks, suspend the recognition of famous and well-known trademarks, adhere to the direction of market-oriented reform, and give play to the role of enterprises as a trademark brand."
After the "problem cable" incident in Xi'an, problems such as the lack of strictness in the review of the famous trademarks by local governments have surfaced, causing public concern. At the end of June this year, the investigation and handling of the incident has been announced. The results show that there are malicious fakes and sales, internal and external collusion in the "problem cable" incident, and the situation is different, the individual cadres dereliction of duty, and the money is received.
What role should the government and the market play in the evaluation of trademark brands? Zhang Mao, director of the State Administration for Industry and Commerce, pointed out that some local governments are influenced by habitual thinking, promoting well-known trademarks as honors and credibility, and even issuing task targets. This is actually an unfair competition behavior, contrary to the purpose of the well-known trademark protection system. The government assesses that the trademark has an “offside” risk, and the government should not endorse the enterprise. Wang Yukai, a professor at the National School of Administration, also believes that there are many risks in assessing trademarks by the government.
Wang Yukai said: "The trademark appraisal is mostly done by the local government in the past, but I think the risk is relatively large: first, the trademark should be tested by the market, and the market should be evaluated. If the government evaluates it by administrative means, it is not necessarily accurate. There will be a lot of moral hazard or trust risk. Second, in order to be able to win awards, or to evaluate famous brands around the world or nationally, some trademark institutions may encourage some rent-seeking behaviors, give gifts to the evaluation department, and find relationships. There may be a large risk of corruption and integrity. Third, if the government evaluates inaccurately, it will also generate a lot of social risks."

There is not enough market research to support the difficulty of controlling trademarks in real time.
The data shows that in 2016, the number of trademark registration applications in China reached 3.691 million, ranking first in the world for 15 consecutive years. By the end of May this year, the cumulative number of trademarks in China had reached 15.47 million, with an average of one valid trademark per 7 market entities.
There is no doubt that China is a veritable trademark power. Zhao Ping, a researcher at the China Council for the Promotion of International Trade, pointed out that in the face of such huge data, local governments want to carry out well-known trademark evaluations, which has great management pressure.
Zhao Ping said: "First of all, there is not much data source for the well-known trademarks. For example, well-known trademarks are first measured by the popularity of trademarks, but if the government does not conduct large-scale market research, it is difficult to know its In addition, it is a well-known trademark. In addition to its high reputation, it should have a high reputation and loyalty. However, these also require specific market research for each well-known trademark. Whether the well-known trademark itself is a well-known trademark every year, this also requires annual metrics. Some changes in these business areas may be difficult for the government to control in real time."

Openness and transparency are necessary conditions for actively implementing trademark brand strategy
In the face of “offside” risks and management pressures, management departments need to clarify misunderstandings and reverse the deviations in trademark brand construction as soon as possible. At the same time, in terms of regulation, the government should not selectively disclose law enforcement information. However, Zhang Mao pointed out that in the implementation process, some areas have been inconsistent or even disparate in terms of “should be open” and “opened up”.
Zhang Mao said: "For example, some places should be "opened" to more than 5,000 pieces, and only seven have been published. They are worried that the case treatment will appear as 'extracorporeal circulation', which may be affected by local protection, and there may be other reasons, but If not disclosed, the effect of such regulation is zero."
In this regard, Wang Yukai, a professor at the National School of Administration, believes that the active implementation of the trademark brand strategy is open and transparent.
Wang Yukai said: "To be open, so that law enforcement can be supervised by the public and subject to supervision by enterprises, it is possible to make law enforcement more fair and just. Therefore, if it is not open, it is in the process of black-box operation, it is very easy. There are many problems in the process of law enforcement. There are many regulations for law enforcement and government affairs. If you are not open and opaque, for yourself, it is a violation of the government information disclosure regulations."

Yangguang Short Comment: Let the market and consumers become the ultimate judges of brand value
The State Administration for Industry and Commerce officially called for the identification of local government trademarks. In essence, it should belong to the "home" of power, which is a necessary correction. Whether the enterprise products are good or not, whether the trademarks are famous, these should be formed in the competition, and the consumers and the market have the final say. Through the official selection and determination, it is inevitable that there is a suspicion of "more and more."
Objectively speaking, in the initial stage of the market economy, the official selection of brand selection and identification is a useful attempt. On the one hand, it can encourage enterprises to strive for excellence, and on the other hand, it can guide consumers. However, with the development of the market economy, the drawbacks of this method will become more and more prominent, and the lessons brought are often difficult to ignore, such as the Sanlu milk powder incident, such as the Xi'an subway cable incident. These former "famous trademarks" and "famous trademarks" not only damaged the rights and interests of consumers, but also had a huge negative impact on the government's reputation.
Under such a background, the State Administration for Industry and Commerce "stopping" the local government trademark selection and identification is undoubtedly the solution to the problem of "bottoming the bottom of the wages", is to replace the "invisible hand" with the "tangible hand." However, the "homing" of power does not mean the withdrawal of supervision. It should even be strengthened to allow the "tangible hand" to play the role of correction, restraint and supplement to avoid the government's inaction. Only when they perform their duties and their respective positions, the true "golden signboard" can be protected, which is conducive to the formation of a healthy market ecology.

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