In-Depth Analysis of Revenue Generation Paths for Registered Trademarks: Ten Models Based on Legal Frameworks and Business Practices
——A Discussion of Compliance Monetization Strategies Under the Trademark Law
I. Trademark Licensing: The "Rental Model" of Asset-Light Operations
Trademark licensing generates revenue by authorizing third parties to use registered trademarks through contractual agreements, collecting fixed fees or revenue sharing (Article 43, Trademark Law). Licenses must be filed with the Trademark Office (Article 69, Trademark Law Implementation Regulations). Revenue paths include ordinary licensing (e.g., Disney’s annual licensing revenue exceeds $5 billion), exclusive licensing (e.g., Apple licensing the "i" prefix to Swatch), and cross-licensing (e.g., automotive brands’ tech-trademark swaps). Case studies show New Balance generated over RMB 2 billion in 2025 via exclusive licensing to Chinese distributors, while the Palace Museum’s "Forbidden City Cat" series earned RMB 5 million per product in licensing fees. Caution: Licensing contracts must include quality control clauses to avoid trademark revocation due to licensee product defects.
II. Trademark Transfer: The "One-Time Monetization" of Asset Securitization
Trademark transfers require written agreements and joint filing with the Trademark Office (Article 42, Trademark Law). Related trademarks on identical goods must be transferred together (Article 31, Trademark Law Implementation Regulations). Revenue paths include bulk transfers (e.g., Lenovo acquiring IBM’s PC business and the "ThinkPad" trademark), partial transfers (e.g., Tencent transferring the "WeChat" education trademark to New Oriental), and auction transfers (78% transaction rate for trademark auctions on Alibaba’s platform in 2025).
III. Trademark Pledge Financing: The "Credit Leverage" of Intangible Assets
Trademark rights can be pledged as collateral (Article 223, Property Law), requiring registration with the Trademark Office (Article 70, Trademark Law Implementation Regulations). Revenue paths include bank pledges (e.g., Tsingtao Brewery’s RMB 1 billion low-interest loan via its "Tsingtao" trademark), supply chain finance (e.g., Huawei’s trademark-backed supplier financing), and asset-backed securities (ABS) (e.g., China’s first trademark ABS, "Qiyi Century," issued RMB 500 million in 2025). Examples include Guangyao Group’s RMB 500 million credit line from Guangzhou Bank (4.35% annual rate) and Ant Group’s RMB 300 million supply chain financing via the "Sesame Credit" trademark. Caution: Valuations must use income-based methods (e.g., DCF models) with third-party reports to avoid bank rejections.
IV. Licensed Derivatives Development: The "Long-Tail Monetization" of IP Value
Unauthorized use of identical trademarks on identical goods constitutes infringement (Article 57, Trademark Law). Rights conflicts with copyrights require clear attribution (Article 15, Copyright Law). Revenue paths include co-branding (e.g., Uniqlo’s KAWS collaboration T-shirts with 15% royalty rates), self-operated derivatives (e.g., Starbucks’ "Cat Paw Cup" generating RMB 200 million annually) Licensing agreements must stipulate "derivatives require written confirmation from trademark owners" to avoid design infringement lawsuits.
V. Trademark Litigation Revenue: The "Legal Dividend" of Passive Income
Damages for infringement can be calculated based on losses or infringer profits (Article 63, Trademark Law), with recoverable reasonable costs (e.g., legal fees). Revenue paths include administrative actions (e.g., Xiaomi’s RMB 8 million settlement against "Xiaomi New Product" counterfeit TVs), civil lawsuits (e.g., RMB 98 million awarded in the "New Balance" trademark case), and criminal prosecutions (e.g., 10-year imprisonment for counterfeit "LV" trademark production). Michael Jordan’s lawsuit against China’s Qiaodan Sports yielded RMB 300,000 in damages but rebuilt brand reputation, while Tesla’s "T" trademark case secured RMB 5 million and trademark cancellation. Caution: Retain complete infringement evidence (e.g., notarized purchases, sales data) to avoid dismissal due to insufficient proof.
VI. Government Subsidies and Tax Benefits: The "Indirect Revenue" of Policy Incentives
National policy encourages trademark registration (Article 4, Trademark Law), with local subsidies (e.g., Zhejiang’s RMB 500,000 reward for well-known trademarks) and project funds (e.g., RMB 1 billion national trademark fund in 2025). Revenue paths include registration subsidies (e.g., Shenzhen’s RMB 20,000 per Madrid System trademark), well-known trademark recognition (e.g., 10% corporate income tax cuts), and project fund applications. Hangzhou Wahaha earned RMB 500,000 and a 15% tax reduction via "Very Coke" well-known trademark recognition, while ByteDance secured RMB 200,000 per filing for "TikTok" Madrid trademarks in Beijing. Caution: Well-known trademark recognition requires "public recognition by relevant consumers" (Article 14, Trademark Law) to avoid cancellation.
VII. Trademark Securitization: Financial Innovation for "Asset Activation"
Asset-backed securities can be publicly issued (Article 9, Securities Law), requiring standardized valuation methods (e.g., income approach). Revenue paths include ABS issuance (e.g., "Qiyi Century" trademark ABS yielding 6.5% annual returns) and SPV establishment (e.g., Disney’s $1 billion trademark bond SPV). Tsingtao Brewery’s "Tsingtao" trademark ABS raised RMB 500 million at a 4.8% senior tranche rate, while Tencent’s "WeChat" trademark SPV issued RMB 3 billion in convertible bonds at 3.2% annual cost. Caution: Rating agencies must assess trademark cash flows (e.g., China Chengxin’s AA+ ratings) to avoid higher issuance costs.
VIII. Cross-Border E-Commerce Trademark Strategy: The "Global Passport" for Market Entry
Trademarks require territorial registration (Article 19, Trademark Law), with international coverage via the Madrid System (128 countries). Revenue paths include Amazon Brand Registry. Anker’s global trademark registration enabled 30% price premiums in European markets (55% gross margins), while Transsion Holdings’ "Tecno" trademark captured 40% of Africa’s smartphone market. Caution: Adhere to national registration standards (e.g., U.S. "actual use" requirements for evidence) to avoid rejection.
IX. Trademark Philanthropy: The "Brand Endorsement" of Social Value
Trademark usage must align with public order (Article 47, Trademark Law), with corporate partnerships permitted under charity laws (Article 26, Charity Law). Revenue paths include philanthropic licensing (e.g., Nongfu Spring’s "1-Cent Charity" campaign donating all royalties) and government collaboration (e.g., "West Lake" trademark licensing with 10% government revenue share). Starbucks’ "Earth Day" campaign raised over $20 million annually via its trademark, while Li-Ning’s "Forbidden City" collaboration funded cultural relic restoration. Caution: Avoid over-commercializing charity partnerships to prevent reputational damage (e.g., Hongxing Erke’s controlled donation frequency post-viral campaign).
X. Trademark Data Services: The "New Frontier" of Digital Economy
Trademark usage data must be legally collected (Article 30, Data Security Law), with no misuse of personal data (Article 24, Personal Information Protection Law). Revenue paths include big data platforms (e.g., "Quan Dashi" platform’s RMB 300 million annual revenue) and AI training (e.g., Alibaba’s "Luban" design system reducing costs by 50%). Baidu’s "Trademark Search" API handled over 1 billion calls in 2025, while Tencent’s "Penguin" trademark monitoring service generated RMB 80 million in annual fees. Caution: Anonymize trademark data (Article 32, Data Security Law) to avoid lawsuits for information leakage.
Epilogue: The Legal and Commercial Wisdom of Trademark Monetization
Registered trademark revenue generation hinges on "intangible asset materialization" within legal frameworks like the Trademark Law and Anti-Unfair Competition Law. Enterprises should align strategies with growth stages:
- Startups
Prioritize licensing and government subsidies for rapid cash flow. - Growth Stage
Leverage pledge financing and cross-border e-commerce for scale. - Mature Stage
Explore securitization and data services for asset optimization.
In 2025, trademark-derived income exceeded 15% of total corporate revenue, with each additional trademark lifting enterprise value by an average of 2.3%. This underscores: Trademarks are not just legal symbols but also "growth engines" for enterprise value.
YIQIIP short for YiQi Intellectual Property is a registered trademark and intellectual property legal service brand in China. YiQi in Chinese phonetically same as "Together" and literally same as " Perseverance and best wishs", perfectly conveys our values of long-term perspectives and sustainable development.
YIQIIP is a trademark agency certified by the Trademark Office of CNIPA (the National Intellectual Property Administration), providing consulting services to clients worldwide, focusing on trademark-related solutions including registration, strategy, translation, renewal, modification, transfer, review, response to opposition, pledge, management, notarization, monitoring, litigation, and rights protection, etc.
Our mission is to safeguard IP of brands and devote to flourishing of brands, We help brand minimize trademark related risks for stable development. We firmly believe in and emphasize the necessity of long-termism, forward-thinking strategies for brand development.
（source: CNIPA data on 06/04/20025)
（Source: CNIPA, Chinese Trademark Registration Certificate)
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