The INTA 2023 Annual Meeting arrives at a time of great change for brand owners, trademark professionals and regulators worldwide. Groundbreaking advances in technology, the rise of the metaverse and virtual assets, and new approaches to IP protection all continue to shape the brand landscape in a significant way.
As members of our global Trademarks, Brands & Designs Group
begin to pack their bags for Singapore, here are three topics
we'll be watching closely at INTA 2023.
Are brands ready for the metaverse?
In January 2022, luxury designer Hermès' International launched a landmark suit against artist Mason Rothschild after he started selling non-fungible token (NFTs) of furry, artistically coloured Birkin-like bags. He called these tokens "MetaBirkins."
Just over a year later, the New York Federal District Court ruled in favour of Hermès, awarding the French brand USD$133,000 in damages. The case marked the first major example of a brand taking action against the unauthorized use of its trademarks in the virtual world.
It won't be the last.
Indeed, for brand owners, their advisers and regulators worldwide, the emergence of virtual worlds – culminating in the concept of a "metaverse" – has raised more questions than answers.
Many have begun to ask whether current trademark laws are equipped to deal with this evolving virtual space. Others have questioned whether the Nice Classification system, which has governed trademark registrations for more than 60 years, is equally up to the task.
Monique Couture, a trademark lawyer in our Ottawa office, said in a recent article that the wave of metaverse-related applications "has amplified existing doubts about whether the Nice Classification system can adequately answer the demands of a virtual world," adding that "an update is likely needed to keep up with the accelerating pace of change."
Despite these concerns, there's little argument that the metaverse opens up an exciting untapped market for brands ready to take the virtual plunge. Morgan Stanley estimates that for luxury brands alone, the metaverse could present a USD$50 billion opportunity.
As brands begin to explore what may soon become a
21st century gold rush, one thing seems certain:
enforcement in the metaverse will require a combination of
creativity, foresight, technical understanding and tried-and-true
IP strategies.
Trade secrets: The next frontier for IP?
Trade secret protection has become an increasingly attractive option for businesses across different sectors. And for good reason.
Unlike other forms of intellectual property – such as patents, trademarks, designs or copyright – there is no searchable registry of trade secrets. Given the pace of innovation today, this quality alone can give businesses a commercial edge, allowing them to develop products and services away from the prying eyes of competitors.
As many such businesses have discovered, however, protecting IP by means of trade secret is not without risk. That being the case, a solid trade secrets strategy is crucial and should address all potential gaps in protection – from cyber security to employment contracts.
But what role will trade secrets – traditionally associated with innovation and inventorship – play in shaping the future of the trademark profession? A larger one than some may think.
In a recent World Trademark Review survey of leading brand professionals, 40 per cent of respondents identified trade secrets as an area over which they expect to have more responsibility in the years to come. This is due, in part, to recent advances in technology which have merged the traditional boundaries between brand, innovation and data – forcing trademark professionals to adopt 360-degree approach to their clients' intangible assets.
IP takes a leap forward across Asia
With this year's Annual Meeting hosted in Singapore, much of the conversation will naturally lean toward recent IP developments across Asia.
Singapore continues to build upon its IP Strategy 2030, released in 2021, which looks to attract innovative businesses, shore up the country's economy and position the island nation as a major IP "node" in the ASEAN region.
According to the Intellectual Property Office of Singapore, "cooperation amongst ASEAN member states has... steadily grown, increasing the attractiveness of the region as an integrated economic bloc." Singapore aspires to leverage this unique opportunity by working to advance the "interoperability of IP systems," while bridging the divide between the ASEAN region and the wider world.
China is also making waves in the region, taking a hard line against malicious trademark filings and infringement.
In January, the country took aim at bad faith applications, proposing significant updates to its trademark law and processes. These updates will not go into effect until late 2023 at the earliest, but brand professionals will want to have their finger on the pulse.
Meanwhile, the Chinese Supreme People's Court kicked the year off with an updated interpretation that establishes "serious circumstances" thresholds that will be used to determine whether an infringement case will be prosecuted criminally.
Read the original article on GowlingWLG.com.
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