However, the vast majority, some 94 per cent, said they were confident that their company had taken the proper steps to clear a mark across all markets. Litigation in the sector is common with more than half of the respondents (53 per cent) indicating that their organisations had taken legal action against third parties who had infringed upon their brand, with 34 per cent needing to change the name of the brand because of infringement. In addition to financial implications of trademark infringement, such as loss of revenue (26 per cent), respondents in the survey identified damage to brand reputation (21 per cent), customer confusion (21 per cent) and reduced customer loyalty and trust (19 per cent) as the some of the main consequences.
Trademarking on the rise
The research also showed that trademarking is on the rise, as two-thirds (66 per cent) of organisations stated they had plans to launch new marks over the next 12 months. In addition, 80 per cent of respondents said they would be more likely to launch new brands if trademark clearance were simpler with 44 per cent stating that better technology would help clear trademarks more quickly and accurately.
‘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 market place 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.
The research was carried out on behalf of CompuMark by leading research agency Opinium and conducted online between August 12 to 22, 2016 on a sample of 440 C-suite respondents in organisations of 10 or more employees.