CompuMark, the industry leader for trademark research and protection, today released findings around the impact that trademark infringement has on brands, with eight-in-10 (80%) of C-level executives saying it is on the rise. Despite this awareness, the research also uncovered that that only one in five respondents (20%) have a process in place to actively watch more than 75% of their marks, while half admitted to only watching between 26-7%.
Conducted by leading market research company Opinium, the survey analyzed the challenges that C-Level executives face, their outlook on trademark infringement and the trademark management process overall.
The research also showed that trademarking is on the rise, as two-thirds (66%) of organisations stated they had plans to launch new marks over the next 12 months. In addition, 80% of respondents said they would be more likely to launch new brands if trademark clearance were simpler.
“The number of trademarks being filed is increasing exponentially and will, no doubt, continue to do so. This fact, coupled with the sheer number of trademarks that are already in the marketplace means that it is getting more and more difficult for brands to clear and register unique marks, while properly protecting those they have registered. This highlights the need for greater protection and, as a result, makes it imperative for organisations across the globe to develop and enforce a comprehensive strategy that helps them secure their biggest assets — their brands,” said Anil Gupta, CMO of CompuMark.
In addition to financial implications of trademark infringement, such as loss of revenue (26%), respondents in the survey identified damage to brand reputation (21%), customer confusion (21%) and reduced customer loyalty and trust (19%) as the some of the main consequences.
Other key findings from the research include:
- 94% said that they were confident that their company had taken the proper steps to clear a mark across all markets.
- 44% of participants state that better technology would help clear trademarks more quickly and accurately.
- More than half of the respondents (53%) indicated that their organisations have taken legal action against third parties who had infringed upon their brand, with 34% needing to change the name of the brand because of infringement.
(Source: CompuMark)
