TM infringements rise 15% over two years, says report
The number of global brands that suffered a trademark infringement rose to 85% last year, up from 81% in 2018 and 74% in 2017, according to the latest research from CompuMark.
Customer confusion (45%), loss of revenue (38%) and damage to brand reputation (37%), were cited as the most severe consequences for those involved.
Three-quarters of trademark infringements led to litigation, with 40% of organisations spending between $50,000-$249,999 on legal proceedings, reported CompuMark, a trademark research and protection organisation.
In addition, 46% of respondents needed to undergo some form of rebranding as a result of an infringement.
Trademark infringement frequently goes beyond business name and can include web domains, social media posts, and advertising campaigns, the research showed.
The number of trademarks filed is also increasing, with 48% of brands filing more than last year, 31% filing the same number, and 21% filing fewer marks, the report said. This is backed by the latest figures from the World Intellectual Property Organization, which indicate a 15.5% increase in trademarks filed in 2018.
The filing landscape is shifting too: 78% of respondents are including industrial design trademarks in their filing strategies and 56% are filing more image marks than in 2018, said the research.
“We’re seeing more and more trademarks filed as brands seek to take advantage of commercial opportunities driven by globalisation, the online marketplace and emerging markets entering the IP space,” said Jeff Roy, president, IP group, Clarivate Analytics, owner of CompuMark.
Technology was the most cited method (49%) of improving the trademark research and protection process, with artificial intelligence seen as the method of speeding up search, watch and review, as well as in using predictive analytics and automating tasks.
Free-from products drive UK disputes
Meanwhile, separate research from UK-based law firm RPC indicates the number of challenges to UK trademark applications hit a record high of 3,611 last year, a rise of 21% (based on UK Intellectual Property Office (UK IPO) figures) from the 2,983 filed in the previous year.
RPC claimed that the increase is a result of businesses having to file more trademarks to keep up with the consumers’ almost insatiable demand for new product variations.
Growth in the low and no-alcohol versions of drinks, as well as vegan, vegetarian and other “free-from” versions of foods, have led to a surge in related trademark registrations and disputes.
The number of new trademarks registered with the UK IPO has risen by 10% to 57,633 in the last year from 52,383 the year before.
“The free-from market is growing fast as more consumers turn to healthier products. It is not just millennials that are switching to vegan and alcohol-free products,” said RPC’s head of food & drink, Ciara Cullen.
“These are potentially huge and high margin categories and that creates a highly competitive land grab. Disputes over trademarks are an obvious result of clashes between many different companies trying to build their stake in these markets,” she added.
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