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26 July 2022TrademarksSarah Speight

Virtual trademark applications rise in EU

Applications for trademarks relating to  non-fungible tokens (NFTs) and the metaverse have soared in Europe, but nosedived in the US, according to recent figures.

Data from IP research firm  Clarivate shows that such applications to the EU Intellectual Property Office ( EUIPO) have risen from fewer than 50 applications per month to almost 300 per month since autumn 2021.

The United States Patent and Trademark Office ( USPTO), meanwhile, saw a fall in applications from a record high in March of more than 1,000 applications per month to roughly half that in June.

These figures are set against a predicted  drop in global trademark filing volume by up to 20% in 2022, according to Clarivate.

Robert Reading, head of content strategy in Clarivate’s IP group, said  in a post on LinkedIn: “Filing volume for NFT/Metaverse marks in Europe is still trending upwards, with the EUIPO on target to receive over 250 applications for each in July 2022.

“It remains to be seen if the decline seen first in the US will appear in Europe in the coming months.”

Key terms for virtual trademarks

In response to the influx it is experiencing, the EUIPO recently clarified its approach to trademark applications for virtual goods, NFTs and the metaverse for classification purposes.

“Virtual goods are proper to Class 9 because they are treated as digital content or images,” it said. “However, the term ‘virtual goods’ on its own lacks clarity and precision so must be further specified by stating the content to which the virtual goods relate (eg, downloadable virtual goods, namely, virtual clothing).”

The term ‘downloadable digital files authenticated by non-fungible tokens’ will be incorporated in the 12th Edition of the Nice Classification in Class 9, effective from January 1, 2023.

“NFTs are treated as unique digital certificates registered in a blockchain, which authenticate digital items but are distinct from those digital items.” the office explained.

“However, the term ‘non fungible tokens’ on its own is unacceptable, adding that the type of digital item authenticated by the NFT must be specified.”

Finally, services relating to virtual goods and NFTs will be classified in line with the established principles of classification for services.

Stakeholders have until October 3, 2022 to  comment on this approach, as set out in the Office’s 2023 draft guidelines.

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