Trademark registration: small business owners in conflict with large companies!

Trademark registration: small business owners in conflict with large companies!

Registering trademarks is a crucial step for companies of all sizes to legally protect their products and services. Any company, including small companies, can register trademarks for protection at the German Patent and Trademark Office (DPMA). Machine market reports that although the advantages of registering a trademark are many, problems can also arise.

Nearly 50,000 trademarks were registered last year, a slight increase compared to 2023. Around 2,200 of these registrations were challenged through objections from owners of older trademarks. In recent years, these contradictions have become less frequent, which is due to improved research options and early conflict resolution.

Legal challenges for small businesses

An example of the challenges small businesses face is the “Broccodile” trademark, registered by Felix Huynh from Mühlacker. He received a warning and an objection from Lacoste, which involved a dispute amounting to around 500,000 euros. Another example is the company Selva Negra Spirits, which got into legal problems with Jägermeister because of an agave schnapps with a deer antler logo. The amount in dispute in this case was around 250,000 euros. Such conflicts illustrate that small companies in particular should seek legal advice when registering trademarks in order to protect themselves from possible disputes with large companies.

Large companies often rely on automated systems to identify new, similar-sounding brands, increasing the risk for small companies. In addition, longer processing times in trademark proceedings are to be expected, which is due to the increased number of registrations, the increase in cancellation applications and limited personnel capacity. For this reason, it is recommended not to ask questions about the processing status.

Objection and deletion procedures

Owners of older trademarks have the opportunity to file an objection within three months of publishing a new entry. The objection fee is 250 euros, with 50 euros to be paid for each additional objection mark. The objection can also be based on trademarks of use, commercial names as well as geographical and designations of origin. The DPMA also explains the possibility of submitting applications for invalidity in order to have the registration declared invalid due to absolute grounds for protection. A written application is required for this, the fee for which is 400 euros.

The deletion of a trademark can occur if the owner renounces the trademark. This is done using form W 7437. The trademarks can also be managed through applications for revocation or invalidity, which also entail a fee of 400 euros. To secure the economic benefits of a trademark, it is critical for small businesses to thoroughly understand both the registration process and the potential risks.