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Can a practicing lawyer work illegally in a trademark agency?

Yes, it's not illegal.

According to the Measures for the Administration of Trademark Agency Business of Law Firms, lawyers can engage in trademark agency business in three aspects according to law: first, specialized intellectual property consultants, second, trademark confirmation and authorization business, and third, trademark litigation and arbitration business. As a special consultant, lawyers engage in trademark-related business with clients, which involves not only the legal risk prevention of clients, but also the legal risk prevention of law firms and lawyers. It is necessary to effectively prevent and resolve risks.

Trademark agencies include service agencies registered by the administrative department for industry and commerce to engage in trademark agency business and law firms engaged in trademark agency business.