The bill innovators must pay to get trademark protection in Europe is about to be almost halved, in a move that will yield hefty and much-needed savings for small companies.
Charlie McCreevy, the EU’s internal market commissioner, said application and registration fees for community trademarks would fall before the end of this year.
Making good his promise to make the system for community trademarks, an IP right covering the entire EU, more accessible, he also said fee structures will be simplified.
In a speech to MEPs, he said the measures would reduce red tape and lighten the administrative load in the handling of fees, for users and authority - the OHIM - alike.
He proposed the costs for applying and registering a community trademark should fall by about 40 per cent to around €1,000 (£845), down from the current costs of around €1,600 (£1,340).
Experts say the fact that trademark protection costs more in Europe than in the UK has “put off” cash-conscious entrepreneurs, logo designers and brand marketers who often need it the most.
Therefore the price reduction “will make a difference” to their bottom lines, more significantly than if fees had been cut nationally, argued Roger Sinclair, legal consultant at Egos.
He said that while UK individuals can apply for a UK trademark via the Intellectual Property Office, they should also consider registering via the OHIM if the asset faces the continent.
“[The] question is where geographically will the value in the brand for which you register the mark actually be located,” Mr Sinclair said, addressing would-be registrants.
“Trademarks are more likely to be of interest to the marketing
sector, or to the entrepreneur seeking to establish his own business &
brand.”
EU officials hinted demand for the community trademark had been greater than expected and had led to a "financial surplus" of more than €200m through fee payments.
Keen not to let funds build up even further, the Office for Harmonisation in the Internal Market (OHIM) has pushed to cut fees, in line with pledges under the Small Business Act.
Until recently, IP offices at member state level were worried that a reduction in fees would make them less competitive and lose business to the OHIM, which sought to return fees to applicants.
But OHIM has won over member states, by saying while community trademark fees will be cut, half the renewal fees will be distributed to national offices for “use in promoting and protecting trademarks.”
Alongside cheaper fees, small companies are expected to benefit most from the office’s pledge to attack the backlog of opposition claims, which effectively stop trademarks or the registrations of a design.
Commissioner McCreevy also welcomed plans for OHIM to transform into an “e-organisation,” to allow users to submit their applications, pay fees or search for registrations online.
“The interest of MEPs in industrial property matters is vital,” he told an audience in Brussels.
“It is our shared responsibility to constantly work on improving Europe's competitiveness. To protect our innovations and remain competitive in the global knowledge-based economy, strong industrial property rights are essential. And in the difficult economic times we face, this is now more crucial than ever.”
A detailed study will follow on the added value trademarks can bring to companies, the awareness of potential users to that value and the system, and the costs of a trademark.
Nov 19, 2008
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