IP Australia’s 2024 report sheds a positive light on creativity and innovation in Australia
Trade mark applications continue to grow in Australia, reflecting a trend of increased innovation and entrepreneurial activity across various industry sectors.
In its 2024 Australia IP Report (Report), IP Australia reports that trade mark applications are consistently increasing as businesses take proactive steps to establish their brand and protect their intellectual property (IP) rights.
The Report provides interesting insights into how Australian innovators and entrepreneurs protect their IP. As an IP law firm and trade mark attorneys, we have drilled down on the key points to keep you up to date on the current trade mark trends.
Review the trade marks chapter of the Report here.
Headline points and figures:
- Trade mark filings can be an important economic indicator and reflect entrepreneurial activity
- Domestic trade mark filings grew by 7.2% in 2023, driven by a 9.8% increase in domestic filings
- Trade mark applications by non-residents grew by 3.7% – filings from China increased by over 52%
- International trade mark applications by Australians fell by 10.3%
- However, trade mark registrations fell by 9.9%
Trade marks – domestic applicants
There were nearly 50,000 trade mark applications filed by Australian-based applicants in 2023.
This is an increase of 9.8% on 2022 application levels, reflecting an increase in entrepreneurial activity by Australian companies.
Small and medium enterprises represent nearly 74% of Australian applicants indicating how Australian companies continue to innovate and understand the importance of protecting their IP rights.
Classes of goods and services
The ‘heavy filers’ of trade marks concentrated around providers of information-intensive services, such as advertising, education and clothing, footwear and headgear. In contrast, filings fell in a number of sectors, including technology-intensive classes, electrical apparatus and scientific and technological services.
IP Australia’s infographic shows the key types of goods/ services:
Why is there a reduction in registrations?
Although the Report doesn’t explain why fewer trade mark applications have proceeded to registration, over our years of practice we have observed clients coming to us seeking assistance in responding to adverse examination reports, which often relate to:
- a lack of distinctiveness – using commonly used words to grand your goods/ services
- substantially identical or deceptively similar to earlier trade marks (even if not identical, a similar trademark can prevent registrations or opposition)
- incorrect classification of goods/services claimed (claims can span over several classes and first-time or self-service applicants often get this wrong)
- failing to meet formal requirements (eg applicant is incorrect)
There may also be a correlation with the reduced number of applications during the immediate ‘post-COVID’ years.
Additionally, first-time applicants sometimes abandon their application if they receive an adverse report.
This highlights the importance of conducting robust clearance searches in the early development stages of your brand strategy, and seeking professional advice on drafting the goods and services claimed in the trade mark application.
It is also possible that an adverse examination report can be overcome by engaging a trade marks attorney to respond to the issues raised by the examiner with compelling arguments or amendments to the goods/ services claimed, to allow the trademark application to progress to registration.
International applications
Trade marks are seen as an ‘entry ticket’ into new international markets. Australian companies are seeking to differentiate their goods and services from other traders in target markets. Although the Report states that Australian international applications were down 10.3% on 2022 levels, Australian’s filed nearly 50,000 international applications in 2023.
The key markets Australian traders applied to in 2023 were:
- United States – 14.8%
- New Zealand – 14.2%
- China – 13.1%
- United Kingdom – 9.6%
- European Union 7.4%
While the majority of international application by Australia are filed via the Madrid Protocol, we recommend consulting with a trade mark attorney to discuss your filing strategy as examination processes, costs and timelines can vary from one country to another. In this regard, sometimes it is more efficient to file the application directly with a local trade marks office, via a local attorney. Art & Commerce assists our clients with this process through our network of experienced international attorneys.
Non-resident applications
Unsurprisingly, applications by non-residents continue to be lower than domestic applications.
The key markets of origin for international trade mark applications were:
- United States – 11.3%;
- China – 9.8%;
- United Kingdom – 3%;
- Germany – 1.9%; and
- New Zealand – 1.5%.
Applications from China increased by 52.1% in 2023.
Interestingly, international applicants are less likely to apply via the Madrid Protocol with direct filings increasing 11.2% in 2023. This often requires more reliance on the experience and insights of local Australian attorneys such as Art & Commerce.
What does it all mean?
Despite fluctuations experienced during the COVID-19 pandemic, IP Australia’s Report confirms that trade mark filings are a leading economic indicator of where the economy is heading. Statistically, a 1.4 increase in trade mark filings indicates a 1% increase in real Gross Domestic Product, according to a new IP Australia study. [i]
Overall, the increase in applications to protect IP rights, reflects an upward trajectory in the confidence of Australian businesses and recognises the importance of protecting their valuable IP rights.
How can we assist?
If you are about to embark on launching a new product or service and need assistance to acquire protection of your IP rights, or need help dealing with an adverse examination report, please contact us via our IP Concierge or request a free 15 minute meeting to discuss your matter.
Disclaimer
The information in this article is general in nature, does not constitute legal advice and should not be treated as such. You must not rely on this information as an alternative to legal advice from a qualified lawyer.
[i] Nguyen, K. & Yoo, Y. R. (forthcoming). Evaluating trade marks as a leading economic indicator of the Australian business cycle. IP Australia Analytical Note.