Three out of four brands exposed to trademark infringement in 2017
A survey conducted by CompuMark sheds some light on the status of the trademark industry.
In general, the survey finds that registering and defending trademarks is becoming more and more complex as the numbers of trademarks increase at a rapid pace. 74% of the respondents said they have been exposed to trademark infringement in the last year, with customer confusion as the biggest effect (44%), followed by loss of revenue (40%), reduced customer loyalty (34%) and damage to reputation (33%). Little over half had taken legal action against third-party infringements and one-third had to change its brand name. In the last year.
In today’s digital era, one can launch new products and services online in the blink of an eye, but from a trademark perspective this process tends to become more and more complex. Last year, an average of 400 EU trademark applications were filed each day, almost one every three minutes, and that number does not include applications submitted on a national base in their respective countries.
Among the main trademark process challenges identified in the report, time pressures, budgetary issues and speed to market are the most recurring responses. 32% of the respondents mentioned lack of tools, software and resources. While there are free online tools and databases where one can search for trademarks, it is often very time consuming and the results tend to be less accurate compared to using a professional bureau.
The conclusion from this report is that building brands and products on a solid foundation from a trademark perspective is more important than ever, but also more complex than ever. Getting tied up in legal disputes and being forced to change name may not only result in financial loss, but also in damage to the company reputation which may affect the company value and customer loyalty.
Otmore is a one-stop-shop that can assist with anything related to intellectual property rights such as trademarks and domain names. We can be there through the naming process and we offer free trademark analysis on all applications before filing them, to highlight potential risks and obstacles. As of January 30th, Otmore’s database includes 56 jurisdictions and 46 million trademarks.
While a thorough analysis is an important step, we also recommend that you use our in-house developed watching service. It is a software that monitors applications for identical or even similar trademarks, enabling you to act in an early stage to prevent them from being registered. The latest addition to the software is that the trademark watch service now detects potential infringement cases in App Store. Contact us today for more information!