Global Financial Crisis Hits International Trademark Filings in the past year

Geneva, March 2010
PR/2010/634
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%).
WIPO 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.
Regional and National Filing Trends
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.
Marked declines in the filing of international trademark applications were evident in a number of countries in 2009, including the Czech Republic (-34.6%), Sweden (-34%), Italy ( 32.2%), Spain ( 29.9%), Denmark (-27.1%), Benelux (-26.2%), and Germany (-22.9%). Significant decreases were also recorded in international applications received from France (-16.5%), Austria (-15.7%), China ( 14.3%), the United Kingdom (-13.3%), the United States of America (USA) (-13.1%) and the Russian Federation (-10.3%).
Top Designated Countries
Madrid Union members were notified of 303,344 new designations (contained in new registrations or territorial extensions) in 2009, representing a 20% decrease compared to 2008 again reflecting the generally flat global economic conditions. When submitting an international trademark application, applicants must designate those member states in which they want their mark to be protected. Applicants can also extend the effects of an international registration to other members at a later date by filing a subsequent designation. In this way, the holder of an international registration can expand the geographical scope of the protection of a mark in line with evolving business needs.
The top six in the ranking of most designated member states remained unchanged. China (with 14,766 designations) continues to be the most designated country, followed by the Russian Federation, USA, Switzerland, the European Union and Japan.
The number of designations fell in all designated contracting parties, although a number of countries moved up the list of 40 most designated contracting parties. For example, Viet Nam moved from 24th to 21st position, Bosnia and Herzegovina from 33rd to 26th position, Azerbaijan from 36th to 32nd position, Georgia (from 35th to 33rd position) and Albania (from 40th to 35th position). Two countries entered the top 40 most designated countries in 2009, namely, Iran (37th) and Egypt (39th).
Active International Registrations
Over half a million (515,562) international registrations were active in the International Register at the end of 2009, containing some 5.6 million active designations and representing a 2.4% increase relative to 2008. These registrations belong to 169,939 right holders who are mostly small and medium-sized enterprises.
Membership of the Madrid System
The total number of member states of the Madrid system (governed by the Madrid Agreement (1891) and the Madrid Protocol (1989)) remains 84. After the ratification of the Madrid Protocol by Egypt, and the accession to the Protocol by Liberia and Sudan, the number of contracting parties of the Protocol has risen to 81. This means that now only three countries are bound by the Madrid Agreement only. An expanding membership and an ever wider geographical spread of the system make it a more attractive option for businesses operating in international markets.
Of the total number of international applications filed in 2009, 35.7% were transmitted to WIPO electronically; the transmitting trademark offices were those of Australia, Benelux, EU, Republic of Korea, Switzerland and the USA.
In and on behalf of
Mr.Samir, IPPro