In order to avoid trademark infringement disputes, sometimes potentially infringing parties sign trademark coexistence agreement. However, trademark coexistence agreement may be regarded as invalidity because of violating trademark law and competition law, and currently Chinese laws do not formally identify the validity of trademark coexistence agreement. American court strictly complies with contractual benefits and regards freedom of contract as the primary criterion for coexistence agreement validity. Only when “the coexistence agreement harms the public interests seriously ”, can American court invalidate the trademark coexistence agreement. Chinese court could learn from the U.S. judicial practice and affirm the validity of trademark coexistence agreement based on the balance between the freedom of a contract and the public interests.