Abstract: The Trademark Law of China in 2013 adds a good faith clause as Article 7， clarifying that the application for registration and use of a trademark should follow the principle of good faith. Article 7 puts forward the requirements of the clean hand for the acquisition of trademark rights. This is not directly related to whether the trademark is well-known， or whether the squatter and the party which has already used the trademark have specific connections. The good faith article can remedy the omission of specific terms containing trademark squatting， and correct the interpretation difficulty and application confusion in the protection of specific private interests in paragraph 1 of Article 44. If a trademark applicant is aware that the trademark has already been used or registered before the application， but still registers the trademark for the purpose of competitively impeding or seeking illegitimate interests， such application shall be declared invalid. At the same time， courts should refuse to provide any protection for the trademarks registered by squatters.

Key words: the principle of good faith, good faith clause, trademarks squatting