Trademark Activity Research Articles

Examination of related diversification in laggard regions

AbstractIn regions of meagre technology and market activities, traditional innovation metrics (patents and trademarks filed at international offices) may provide limited insight of the mechanisms of regional diversification and therefore policies, including smart specialization. We argue that in such regions, innovation activity, of lower value, can become the seed needed to grow to innovation of international calibre. We provide support by examining both domestic and international patent and trademark activity for Greece's NUTS 3 regions during 2000–2016. We further implement the principle of relatedness and show that regions with related technology (market) capabilities are more likely to exhibit new technology (market) specializations.

Изследване на зависимостта между равнището на конкурентоспособност и марковата заявителска активност на държавите от ЕС-27

This paper presents the level of competitiveness of the EU-27 Member States in 2019. It also indicates the state of trademark activity for the same year, measured by the number of trademarks, applied for in the countries, included in the study. The relationship "national economic competitiveness – trademark application activity" in 2019 and in 2017 is examined. The existence of a positive correlation between trademark activity and the level of competitiveness of the EU-27 Member States for the years studied is confirmed.

Trademarks as an indicator of regional innovation: evidence from Japanese prefectures

ABSTRACT Regional science has long been concerned with measuring the spatial distribution of innovation activity. We introduce trademarks as a new indicator for regional innovation and argue that they are particularly useful to measure the ‘soft’ side of innovation that is difficult to capture with conventional indicators. We explore the spatial distribution of trademarks using a detailed and comprehensive dataset of 47 Japanese prefectures from 1999 to 2012. In addition to mapping differences in trademarking across regions, we identify correlates at the regional level that provide insights into determinants of regional innovation measured via trademarks. For example, regional trademark activity positively correlates with population density, income per capita, entrepreneurship rate, the number of universities, and strong private service and finance sectors. Overall, the results reveal associations unique to trademarks that other measures of innovation cannot uncover. Our findings contribute to research in regional science and the evolving literature on trademarks.

The role of technology and relatedness in regional trademark activity

ABSTRACT This paper provides insights into trademark activity at the regional level via two objectives. First, it examines the relationship between technological capabilities and new trademark applications. Second, it considers whether regions branch out to new trademark specializations that are related to their existing specializations. The paper employs European Union Intellectual Property Office’s (EUIPO) data to study 218 European NUTS-2 regions (16 countries) over the period 2000–16. Results show that increased technological stock is associated with more trademark applications and that existing trademark relatedness induces new specializations. These findings contribute to a better understanding of trademark activity and policies related to regional diversification including Smart Specialisation.

Trademark value indicators: Evidence from the trademark protection lifecycle in the U.S. pharmaceutical industry

This work identifies and studies the determinants of trademark value. In particular, it focuses on trademark characteristics that are related to the underlying brand and on legally stipulated characteristics. To reveal the value implications of the identified trademark characteristics, it follows the idea that more valuable trademarks tend to be protected for a longer period than less valuable trademarks, provided that the benefits of this protection exceed its costs. Thus, those characteristics that have a positive association with the duration of trademark protection should indicate more valuable trademarks. The empirical analysis relies on studying trademark activities in the U.S. pharmaceutical industry, largely owing to its heavy reliance on product differentiation to compete in the market. The results suggest that trademark characteristics are an important predictor of trademark value. At the same time, the value interpretation of some characteristics depends on the stage of the trademark protection lifecycle (that is, registration, maintenance, or renewal) under consideration.

The Value of Trademarks: A Study of the Trademark (Protection) Lifecycle in the U.S. Pharmaceutical Industry

In this work, I study the determinants of (implicit) trademark value. My approach is based on the idea that more valuable marks are likely to remain under legal protection, as long as the benefits of this protection exceed its costs, than less valuable marks. In order to test this idea, I particularly focus on trademark characteristics that are related to the underlying brand as well as on legally stipulated characteristics. My theoretical predictions are verified by looking at trademark activities in the U.S. pharmaceutical industry, largely owing to its heavy reliance on product differentiation to compete in the market. The statistical analysis I conduct suggests that trademark characteristics are an important predictor of whether the mark is going to progress further along its lifecycle or not, thereby also conveying information about its value. However, assigning the value interpretation to each characteristic should also account for the stage of the trademark lifecycle (that is, registration, maintenance, or renewal) under consideration.

Joining Standards Organizations: The Role of R&D Expenditures, Patents, and Product-Market Position

This paper examines the determinants of participation of R&D-intensive firms in standards development. Using data on R&D spending, patent, and trademark activities of the world's largest corporate R&D investors and their membership of standards organizations, we find a highly robust positive association between a firm's R&D spending and its participation in standards development. However, the causal effect of R&D spending on membership of standards organizations is conditional upon the firm's patent and/or product-market position, and varies across different types of standards organizations. More specifically, a strong patent position amplifies the effect of R&D spending on participation in standards-developing organizations, while a strong product-market position strengthens the impact of R&D spending on participation in the organizations that promote established standards. Finally, we also show that policy changes that increase the value of patents, such as variations in the preferential tax treatment of patent-related revenue, induce R&D-intensive firms to intensify their participation in standards organizations.

An Anatomy of U.S. Firms Seeking Trademark Registration

This paper reports on the construction of a new dataset that combines data on trademark applications and registrations from the U.S. Patent and Trademark Office with data on firms from the U.S. Census Bureau. The resulting dataset allows tracking of various activity related to trademark use and protection over the life-cycle of firms, such as the first application for a trademark registration, the first use of a trademark, and the renewal, assignment, and cancellation of trademark registrations. Facts about firm-level trademark activity are documented, including the incidence and timing of trademark registration filings over the firm life-cycle and the connection between firm characteristics and trademark applications. We also explore the relation of trademark application filing to firm employment and revenue growth, and to firm innovative activity as measured by R&D and patents.

The Contribution of Marketing and Branding Efforts in Food Exports: Evidence from Panel Data

Abstract This paper examines the relationship between food-related trademark activity, approximating for branding and marketing efforts, and food exports for the 48 contiguous states of the US over the period 1999–2015. We find a strong and positive relationship between these two variables. Further robustness checks, including an instrumental variables approach, provide evidence that marketing and branding activities contribute to food exports. With respect to food export policy our results point to providing incentives to the private sector (cooperatives, farmers, firms) to pursue marketing and branding efforts.

BENCHMARKING ANALYSIS OF PATENT AND TRADEMARK APPLICATIONS IN THE EUROPEAN UNION: COMPREHENSIVE INNOVATION POLICY EVALUATION FOR YEARS 1960-2013

This study provides benchmarking analysis of patent and trademark applications in the European Union. The objectives of benchmarking are (1) to determine what and where improvements are called for, (2) to analyze how other nations achieve their high performance levels, and (3) to use this information to improve performance in favor of the EU Internal Market. The benchmarking study provides benchmarking results about (1) patent applications of residents and nonresidents, (2) trademark applications of residents and nonresidents, (3) total patent applications, and (4) total trademark applications. The study also provides benchmarking analyses about patent and trademark application in relation to population and gross domestic product. The results of benchmarking cover the time period 1960-2013. The study provides some comparative statistical analyses and discusses whether there has been convergence in patent and trademark activity in the European Union. The study identifies top 10 champions in the different categories of patent and trademark activity. Key results will be reported in the forms of descriptive statistics, Pareto charts, and key statistical indicators. Some special indicators of innovation activity will be reported. The study provides some policy relevant results for the EU Internal Market developmentDOI: http://dx.doi.org/10.5755/j01.eis.0.10.14611

A Policy Perspective on the Accession of Peru to the Madrid Protocol

1. This report offers a discussion based on economic thinking of the costs and benefits for Peru of joining the Madrid Protocol. 2.Madrid accession has effect on two stakeholders: agents in the economy and INDECOPI. Agents include consumers, firms and trademark agents. Regarding consumers, Madrid accession is likely to have a positive (but modest) effect.3. Regarding firms:a. A quarter to half of Peruvian firms with international trademark activity will directly benefit from cheaper trademark protection. This figure is bound to increase as more Latin American countries join Madrid.b. Looking at export of branded products by Peruvian firms to Madrid and non-Madrid member states, there seems to be scope for growth in the number of applications filed in Madrid member states.c. We do not expect Madrid accession to strengthen trade/FDI significantly.d. The argument that Madrid accession will deteriorate the balance of trade is misguided.e. Economic reasoning does not support the argument that Madrid accession will increase the market power of foreign firms and hurt local producers.4. Regarding trademark agents:a. Descriptive comparisons suggest that the number of direct filings overall may decrease by about 6 to 16 per cent. However, experience in other countries that have recently joined (e.g., the Philippines) has shown that the drop could be smaller than anticipated.b. The Madrid System also creates opportunities for trademark agents: growth in overall applications in Peru (coming with new advising and representative roles), and opening up of the ‘Madrid market’ (i.e., capacity to file international Madrid applications on behalf of Peruvian clients).5. Regarding INDECOPI:a. Madrid accession will increase fee revenues collected by INDECOPI.b. The report draws attention to the fact that INDECOPI must be able to deal with the increase in applications that the Madrid System will induce.6. The report provides four policy recommendations to take full advantage of Madrid accession: i) Provide timely and reliable examination of trademarks; ii) Support or raise awareness of the System's opportunities for companies that do business abroad; iii) Inform agents on how to adapt their services on offer; and iv) Convince other Latin American countries to join the Madrid System in view of network externalities.7. There is a need for accurate forecasts of the increase in the number of applications induced by Madrid accession. 8. On balance, the report makes the point that arguments in favour of Madrid accession outweigh arguments against. The positive welfare effect of Madrid accession will become stronger as more Latin American countries join.

Are Trademark Counts a Valid Indicator of Innovation? Results of an In-Depth Study of New Benelux Trademarks Filed by SMEs

This paper extends the emerging literature on the value of trademarks for innovation studies and policy-making with the first empirical study at the trademark level. It gives a view on how companies use trademarks and interpret trademark activities. A sample of 660 new Benelux trademarks registered by small- and medium-sized enterprises reveals that 60 per cent of recently registered Benelux trademarks refer to innovation activity, predominantly to product or service innovation. The reference to innovation co-varies with various applicant and trademark characteristics unknown from previous studies. Finally, the sample reveals that most of the trademarks used to signal innovative offers are filed close to its market introduction without combining them with other intellectual property rights. This holds especially for trademarks related to service innovation.

Factors favoring innovation from a regional perspective: A comparison of patents and trademarks

This paper investigates factors associated to a higher likelihood of engaging in Intellectual Property Right (IPR) activities in the 103 Italian provinces for the period 1998–2007. We distinguish between patent and trademark activity and find that their determinants are to some extent different. Both patent and trademark activity are influenced by use of credit, presence of university graduates, and industrial districts. Hence, three types of capital matter for both types of IPR activity: financial, human, and network capital. Higher endowment of social capital only influences trademark activity. We do not find an impact of entrepreneurship capital. Patent activity appears to be influenced relatively more strongly by financial and network capital, and trademark activity relatively more strongly by human and social capital.

Trademarks and venture capital valuation

This study investigates the role of trademarks in the start-up valuations of venture capitalists (VCs). Our results show that the number and breadth of trademark applications have inverted U-shaped relationships with the financial valuations of start-ups by VCs. The findings also indicate that in later funding rounds, the value of trademark applications decreases when the start-up progresses into more advanced development stages. Start-ups should consider these findings when seeking funding from VCs and should stress their market and growth orientations and their willingness to protect their marketing investments by highlighting their trademark activities.

TRADEMARK ACTIVITY AND THE MARKET PERFORMANCE OF U.S. COMMERCIAL BANKS

This empirical paper analyzes the effect of trademark activity on the market value and performance of US commercial banks from two perspectives. First, a longterm perspective considers the effect of such activity on banks’ Tobin's q. Second, with a short-term perspective, the authors analyze the effect of trademark activity on banks’ abnormal returns. An older portfolio of trademarks diminishes the ratio of market value to firm assets, but this ratio can be improved in the long term by abandoning old trade-marks. Portfolios of trademarks with wide diversification do not help increase Tobin's q. Furthermore, according to an event study, the creation of a trademark has a positive effect on cumulative abnormal returns compared with no event, whereas a cancellation event has a negative impact.

Trademarks and Venture Capital Funding

This study investigates the role of trademarks in the start-up valuations of venture capitalists (VCs). Our results show that the number and breadth of trademark applications have inverted U-shaped relationships with the financial valuations of start-ups by VCs. The findings also indicate that in later funding rounds, the value of trademark applications decreases when the start-up progresses into more advanced development stages. Start-ups should consider these findings when seeking funding from VCs and should stress their market and growth orientations and their willingness to protect their marketing investments by highlighting their trademark activities.

Trademark Activity and the Market Performance of U.S. Commercial Banks

This empirical paper analyzes the effect of trademark activity on the market value and performance of U.S. commercial banks from two perspectives. First, a long-term perspective considers the effect of such activity on banks’ Tobin’s q. Second, with a short-term perspective, the authors analyze the effect of trademark activity on banks’ abnormal returns. An older portfolio of trademarks diminishes the ratio of market value to firm assets, but this ratio can be improved in the long term by abandoning old trademarks. Portfolios of trademarks with wide diversification do not help increase Tobin’s q. Furthermore, according to an event study, the creation of a trademark has a positive effect on cumulative abnormal returns compared with no event, whereas a cancellation event has a negative impact.

Trade Marks and Performance in Services and Manufacturing Firms: Evidence of Schumpeterian Competition through Innovation

AbstractWe develop Lancaster's model of consumer behaviour under product differentiation to analyse Schumpeterian creative destruction. Launching new products with novel characteristics enables firms to temporarily steal market share from rivals. Product launch is monitored by using trade marks, patents and research and development. The dataset covers a large sample of UK service and manufacturing firms. We find that stock market value is positively associated with own trade mark activity and trade mark‐active firms achieve significantly higher value‐added. Greater trade mark activity by competitors reduces net output of firms, but raises their stock market value. This is consistent with the Schumpeterian process of competition through innovation.

Vietnam's Intellectual Property Landscape from a Regional Perspective

The purpose of this paper is to provide a comprehensive understanding of the development of intellectual property rights (IPR) in Vietnam from a regional perspective. The protection of IPR in Vietnam has recently received domestic and international attention. The Vietnamese government has responded by reforming its industrial and copyright regimes, consolidating its legislation, and creating new administrative and judicial institutions to facilitate the enforcement of these new rights. In so doing, Vietnam has brought its IPR system into conformity with the requirements under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The study reveals major stylized facts of Vietnam's intellectual property (IP) landscape that include an insignificant volume of invention, the predominance of non-residents' patents, high grant ratios to non-residents, a remarkable increase in non-residents' applications, and dynamic patterns of trademark activity. The slow increase in patent applications and grants implies the country's weak technological progress, low quality of scientists and research institutions, and low investment in research and development (R&D) over nearly two decades. Despite having taken significant steps to strengthen its IPR protection and enforcement, Vietnam continues to experience severely IP-infringed goods. The paper also derives possible policy implications for upgrading Vietnam's IPR system.

Sectoral patterns of firm exit in Italian provinces

There is considerable variation in the firm exit rate across the 103 provinces in Italy. This paper investigates a range of determinants of the exit rate for twelve different sectors in the Italian provinces for a period of eleven years. The analysis shows that the exit rate is positively affected by entry in the previous year (displacement) in the same sector. Previous exit has a different effect for the manufacturing industry as compared to the business services. More specifically, exit persists in manufacturing while in the business services it is rather exit in related sectors in the same province that leads to increased exit, probably due to the loss of clients or suppliers. The presence of industrial districts diminishes exit, especially in two manufacturing sectors (Food and Clothing), Commerce and Transport. Provinces with strong trademark activity appear to have lower exit rates.