Global Financial Crisis Hits International Trademark Filings in 2009 - WIPO

GENEVA - International trademark filings under WIPO’s Madrid System for the International Registration of Marks (“the Madrid system”) dropped by 16% in 2009 as a result of the global economic downturn, though increases were observed among some major users of the system, notably the European Union (EU) (3.1%) and Japan (2.7%), as well as in the Republic of Korea (ROK) (+33.9%), Singapore (+20.5%), Croatia (+17.5%) and Hungary (+14.5%).
The World Intellectual Property Organization (WIPO) announced in a press release that it has received 35,195 international applications under the 84-member Madrid system compared to 42,075 in 2008.  Similarly, international trademark registrations were down 12% on 2008 with a total 35,925 international registrations in 2009.
Trademark registrations reflect the introduction of new products and services to the market and are sensitive to business cycles.  The comparatively smaller decrease (-1.2%) in the renewal of international trademark registrations, compared to 2008, reflects the value of established brands at a time when consumers opt for goods that are tried and trusted.  In 2009, 19,234 international trademark renewals were recorded.
“International trademark filings took a hit in 2009,” said WIPO Director General Francis Gurry, “this is not surprising given the difficult financial conditions and restrained consumer demand facing companies around the world.  While trademark protection is sound business practice in good times and bad, companies are more cautious about bringing new products to market when economic uncertainty is high.  That said, trademarks and the brands they underpin play a key role in value creation and provide the basis for business expansion when the economy recovers.”
Gurry noted “Historically, we know that demand for intellectual property rights declines in periods of recession.  These downturns are more strongly and rapidly felt in the area of trademarks which are more closely tied to market conditions.  Demand for intellectual property rights, however, had reached unprecedented levels prior to the crisis and we have every reason to believe that international trademark activity will pick up as economic growth solidifies and broadens.”
The EU accounted for over half of the international applications received – some 21,824 - in 2009.  This includes international applications filed through national trademark offices of the countries concerned and those filed through the Office of Harmonization for the Internal Market (OHIM) – applicants from the EU may opt to file through their national office or through OHIM.  Some 3,710 international applications were filed through OHIM in 2009 representing a 3.1% increase on figures for 2008.
Among major users, applicants in Germany filed 4,793 international applications, representing 13.6% of the total down 22.9% on 2008.  OHIM ranked second with 3,710 international applications reflecting a 3.1% increase on 2008 figures.  Applicants in France accounted for 3,523 international applications, representing 10.5% of the total and a decrease of 16.5% compared to 2008.  Businesses in the USA filed the fourth largest number of applications, with 3,201 applications or 9.1% of the total and a 13.1 % decrease compared to 2008.  Switzerland held its 5th ranking with 2,671 international applications, and a decrease of 7.4 %, followed by the Benelux countries (Belgium, Luxembourg and the Netherlands) with 1,968 international applications representing a decrease of 26.2% compared to 2008.
In 2009, the EU moved up two places to become the second largest user of the Madrid system.  Norway moved from 21st to 19th position, the ROK moved from 30th to 23rd position, Hungary from 27th to 25th position, and Singapore from 33rd to 28th position.
Developing countries accounted for 1,973 filings representing 5.6% of the total.  Within this category, the highest growth rates were seen in the ROK with a 33.9% increase, and Singapore with a 20.5% growth rate.