Posts Tagged: "Global IP"

The default position of brands has often been to protect as many marks as possible, driving other applicants out and helping establish a well-known and profitable identity. When names can make or break a brand, a significant number of trademarks are created purely for protection. However, these protective practices lead to a systemic problem. When new entrants to a market are faced with trademark clutter, their only choice is to adopt equally aggressive application strategies. This behavior leads to more clutter and further reduces the available pool of marks for the next generation of applicants.

Mark Lopreiato, the inventor of the Forearm Forklift, recorded sales of $4 million in 2008 but since then has seen a 30% drop, which he attributes to cheap replicas available on eBay and Amazon. In point of fact, there have been a number of examples of innovative companies suffering from the sale of replicas on Amazon and other e-commerce sites. In extreme cases, global brands like Birkenstock have stopped business with Amazon and other e-commerce retailers altogether. Sustained pressure on e-commerce sites from both professional and governmental bodies have yielded some results in recent years, with almost every major site now offering some level of IP protection tool or process. This also serves the interest of bigger sites as Amazon, eBay and their Chinese counterpart Alibaba are shielded from legal liability, provided they can offer a timely takedown service for IP owners.

At this moment in history almost everything we thought we knew about global patent protection is being challenged. The U.S. is not the most patent friendly jurisdiction in the world, instead being tied for 10th with Hungary, which really puts into perspective the fall from grace patent rights are having in America… There is no doubt that the U.S. continues to take steps backwards due to variety of self- inflicted wounds. The omnipresent threats of more patent reform, a Supreme Court that has created unprecedented uncertainty surrounding what is patent eligible (see e.g., here, here and here), and a Patent Trial and Appeal Board that has been openly hostile to property owners (see e.g., here and here), allows harassment of certain patent owners over and over again, all the while failing in its mission to provide relief from patent trolls. Meanwhile, a number of countries around the world have taken positive steps forward on the patent front, including countries you might not ordinarily consider as patent friendly jurisdictions.

Patent offices are failing to keep up with the growth of the innovation economy and the resulting increase in patent applications. Unfortunately, the problem could easily get worse in coming years. Many patent offices apparently have yet to process applications from recent years, when huge increases in applications have occurred. It’s a problem that threatens to undermine the global patent system, but what’s both encouraging and discouraging by turns is that it’s largely a basic problem of good governance. Many of the solutions to the problem are relatively straightforward. They require the application of sufficient resources and a willingness to hire an appropriate number of examiners and share work between patent offices. These solutions are a matter of political will and effective management, rather than complex policy. Some countries have shown the will to turn things around, and we hope others will follow.

Would you climb Everest without an expert guide? You shouldn’t navigate the global IP landscape without one either. The global intellectual property terrain is becoming increasingly complex. Across the world, the quantity of patent applications has almost doubled since 2000 (source: WIPO), and the largest single contributor, China, reported over 300,000 patents granted in the chemistry sector in 2015 alone, a 30% increase from the year before (source: STN®, database: CAplus?, accessed 2/15/2016). Consequently, having a patent search professional who can work with your team is more important than ever. Being able to efficiently and expertly research the IP considerations that impact key business decisions can you save time and money, while also providing you with invaluable topical and global insight.