The trademark research company came to the conclusion, that 74% of the brands have experienced trademark infringement in the past year. In more than half of the cases (55%) the trademark infringement was followed by legal action.
Consequently, the impact of trademark infringement on companies is quite great. According to the research, the main consequences are:
- brand confusion among customers (44%)
- sales loss (40%)
- reduced customer loyalty (34%)
- reputational damage (33%)
A third of the companies had to amend a trademark due to the consequences of trademark infringement.
A spokesperson for CompuMark states: “Our report shows that the number of registered trademarks is increasing. Because it is easier to do business worldwide, due to the growing number of brands on the market and the use of external channels such as social media, it has become more difficult to find a unique trade name. Brands need to work harder to protect their intellectual property and limit the risks of infringement. The process of searching and viewing other trademarks is part of that and is becoming increasingly important.”
The whole report “The trademark ecosystem, insights from worldwide professionals in intellectual property.” can be downloaded here.