Shanghai Changxiang Intelligent Technology Co Ltd was fined 5,000 yuan ($694) after the Minhang district market supervision bureau identified its trademark applications filed in August 2021 – including "Xing Ge Chan", "Hong Chan", and related names – to be malicious.

The company argued that its actions were to prevent the misuse of trademarks associated with Quan Hongchan, a well-known Chinese diver and Olympic gold medalist, and claimed that no fees had been paid and therefore no intent to hoard.

The Minhang district government upheld the bureau's decision upon review, and Changxiang's subsequent lawsuit was dismissed by the court. The court ruled that the unauthorized use of Quan's name in trademark applications clearly indicated malicious intent, regardless of payment status. Both the administrative and judicial rulings found that the company's actions were an unauthorized exploitation of the athlete's commercial value.

The initial court decision was upheld on appeal, maintaining the fine and setting a precedent for protecting public figures from unauthorized commercial exploitation. This case underscores China's strict enforcement against bad faith trademark registrations.