The risk is real, but thankfully, it doesn’t happen often. However, when it does, the consequences can be significant. Take the case of Singapore’s TWG Tea: two of their trademarks were invalidated in 2018 under Art. 10.1.7. Despite the invalidation, the brand continued using the marks in their Chongqing store. In July 2023, local authorities issued a penalty decision, resulting in a fine of 800K RMB (~$111K USD).
While this outcome is rare, it serves as a stark reminder that compliance matters. Brands must navigate the complexities of Art. 10 carefully to avoid costly penalties.