Updated Nice Classification and HKIAC Arbitration Rules: Key Legal Changes Effective 1 January 2026 in Hong Kong

Q: When does the updated Nice Classification apply in Hong Kong?

The updated Nice Classification applies to trademark applications filed in Hong Kong on or after 1 January 2026. Applications filed before this date are assessed under the previous version.

Q: What are the key HKIAC arbitration rule changes in 2026?

Key updates include an increased threshold for expedited arbitration to HKD 50 million, higher arbitrator hourly fee caps, and an increased HKIAC arbitration application fee. These changes aim to modernise procedures while balancing efficiency and cost.

Stefan Schmierer
2 days ago
6 min read

Author: Stefan Schmierer, Managing Partner

Two major legal updates took effect on 1 January 2026 that are relevant for businesses operating in or with Hong Kong: the updated Nice Classification for trademarks and revisions to the Hong Kong International Arbitration Centre (HKIAC) Rules.

These changes impact trademark strategy, arbitration costs, and dispute resolution planning. Below we explain what has changed, who is affected, and what businesses should consider going forward.

Updated Nice Classification and HKIAC Arbitration Rules: Key Legal Changes Effective 1 January 2026 in Hong Kong

Updated Nice Classification for Trademarks (Effective 1 January 2026) in Hong Kong

What Is the Nice Classification?

Anyone seeking to protect a business name, logo, or product through trademark registration will encounter the Nice Classification system. This international classification divides: Goods into 34 classes, and Services into 11 classes, creating a total of 45 trademark classes.

When filing a trademark application, the applicant must specify which classes their goods or services fall into. This decision is critical because: Trademark protection is limited to the selected classes, and Registration costs increase with each additional class.

For example, a trademark registered in Class 12 (vehicles) does not prevent another party from using the same name for unrelated goods or services in other classes. Choosing the correct classes therefore requires careful forward‑looking consideration of how the business may expand.

What Has Changed in the 2026 Nice Classification?

As of 1 January 2026, all 45 Nice Classification classes have been updated. While the structural framework remains intact, descriptions of goods and services have been refined, modernised, and, in some cases, reclassified to reflect evolving industries and technologies.

Importantly, the updated classification does not automatically apply worldwide. Each jurisdiction decides independently when to adopt the new version.

Applicability in Hong Kong, Mainland China, and Europe

Hong Kong has adopted the updated Nice Classification as of 1 January 2026.
The same applies to Mainland China and the European Union Intellectual Property Office (EUIPO).

This means:

Trademark applications filed in Hong Kong, Mainland China and Europe in 2025 will be assessed under the previous classification, while;
Applications so filed on or after 1 January 2026 will be assessed under the updated Nice Classification.

Key Updates to the HKIAC Arbitration Rules (Effective 1 January 2026) in Hong Kong

The Hong Kong International Arbitration Centre (“HKIAC”) introduced significant changes to its arbitration rules on 1 January 2026, affecting expedited procedures, arbitrator fees, and application costs.

Expanded Access to Expedited Arbitration Proceedings

Under Article 42 of the HKIAC Rules, a party may apply unilaterally for an expedited arbitration procedure.

What has changed?

The monetary threshold up to which such application can be filed has increased from HKD 25 million to HKD 50 million (approximately USD 6.4 million).
This expansion doubles the range of disputes eligible for expedited arbitration.

Given the time and costs typically involved in arbitration proceedings, this change significantly enhances efficiency and access to faster dispute resolution.

Additionally, the expedited procedure remains available:

Without any monetary limit, if both parties agree, or
Where a party can demonstrate exceptional urgency.

Increased Arbitrator Hourly Rate Caps

The HKIAC has also updated the maximum hourly rates for arbitrators (Schedule 2 of the Rules):

Previous cap: HKD 6,500 per hour (approximately USD 840).
New cap: HKD 7,500 per hour (approximately USD 960).

This represents an increase of roughly 15%.

The hourly cap for arbitration secretaries remains unchanged at HKD 2,500.

Arbitrator fees are often one of the most significant cost factors in arbitration; especially where tribunals consist of three arbitrators rather than one.

Because arbitration costs typically follow the outcome, the losing party may be required to bear:

Its own legal costs.
The opposing party’s legal costs.
HKIAC administrative fees (including Arbitrator fees).

This reflects the financial risk associated with arbitration proceedings, particularly given that experienced international arbitration lawyers often charge hourly rates equal to or higher than arbitrator caps.

Notably, where both parties agree, arbitrators may still charge fees above the statutory hourly cap.

Increase in HKIAC Application Fees

For the first time in 12 years, the HKIAC has increased its application fee for commencing arbitration:

Previous fee: HKD 8,000.
New fee: HKD 12,000 (a 25% increase).

In practical terms, this adjustment is unlikely to deter parties from initiating arbitration proceedings and represents a relatively minor cost compared to overall arbitration expenses.

Conclusion

The updated Nice Classification reinforces the need for careful and forward‑looking trademark planning, as accurate class selection remains fundamental to securing effective and enforceable brand protection. Businesses filing new trademark applications in 2026 and beyond should review their goods and services closely to ensure compliance with the revised classification framework.

At the same time, the HKIAC’s updated arbitration rules reflect an effort to optimise dispute resolution in Hong Kong. Expanded access to expedited proceedings and revised cost structures offer both opportunities and risks, making early legal assessment and strategic planning more important than ever; particularly given the financial implications of arbitration outcomes.

Need Advice on Trademarks or Arbitration in Hong Kong?

The updated Nice Classification and HKIAC rule changes may impact your IP protection strategy and dispute resolution costs.

Ravenscroft & Schmierer advises local and international clients on:

Trademark registration and portfolio management.
Class selection under the updated Nice Classification.
Arbitration clauses and HKIAC proceedings.
Cost‑risk analysis in cross‑border disputes.

Contact Ravenscroft & Schmierer today to ensure your trademarks and contracts are aligned with the 2026 legal changes.

FAQ: Nice Classification and HKIAC arbitration

What is the Nice Classification?

The Nice Classification is an international system that categorises goods and services for trademark registration into 45 classes; 34 for goods and 11 for services. Trademark protection only applies to the selected classes.

When does the updated Nice Classification apply in Hong Kong?

The updated Nice Classification applies to trademark applications filed in Hong Kong on or after 1 January 2026. Applications filed before this date are assessed under the previous version.

Does the 2026 Nice Classification affect existing trademarks?

No. Existing registrations remain valid under their original classifications. However, new filings, renewals, and expansion strategies should take the updated classification into account.

What are the key HKIAC arbitration rule changes in 2026?

Key updates include:

Increased threshold for expedited arbitration to HKD 50 million.

Higher arbitrator hourly fee caps.

Increased HKIAC arbitration application fee.

These changes aim to modernise procedures while balancing efficiency and cost.

Can a party apply for expedited HKIAC arbitration without agreement?

Yes. A party may apply unilaterally if the dispute value is HKD 50 million or below, or if exceptional urgency can be demonstrated.

How do the HKIAC cost changes affect arbitration risk?

Higher arbitrator fees increase potential exposure, particularly because arbitration costs usually follow the outcome. This makes early dispute assessment and strategy more important than ever.Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.