Crypto proponents would be wise to keep their eyes on nonfungible token (NFT) and metaverse trademark applications this year, which are “reliable signals” of future-use plans.
Speaking to Cointelegraph, intellectual property lawyer Michael Kondoudis said while many people may think big corporations are just jumping onto the NFT trend as a novelty, “it is not possible” to register a trademark in the United States with no intention to use it.
Despite a relatively low cost for filing an application — ranging from $250 to $350 per class of goods/services — Kondoudis explained when a company submits a trademark application, it requires a sworn statement that the applicant has a “bona fide” intent to use the mark in the future for the listed products and services.
He noted, however, that these applications “undergo substantive review” and may be rejected for a number of legal and technical reasons.
2023 has already seen a string of major companies filing for NFT-related trademark applications and Kondoudis has been active on Twitter, bringing them to the public’s attention.
So far, 2023 marks trends
Kondoudis noted “the first trend for 2023” was liquor companies filing for NFT trademark applications.
He noted that this year saw new filings from many well-known alcohol brands like Absolut Vodka and Chivas Regal whisky, as well as Malibu Rum.
Irish Distillers International, the makers of Jameson Irish whiskey was the most recent liquor company to file an NFT trademark application.
Irish Distillers Int’l has filed a trademark for #JAMESON #whiskey claiming plans for
Virtual clothing, footwear, and alcoholic beverages
NFT trading software
Virtual goods stores + NFTs
NFT trading platforms
Virtual bars and restaurants#NFTs #Metaverse #Web3 pic.twitter.com/7dhHZrXh2S— Mike Kondoudis (@KondoudisLaw) January 23, 2023
Kondoudis said 2022 saw a diverse range of sectors filing for NFT trademarks — from grocery stores, pet food brands, sports teams and leagues, cities, casinos and even game shows.
He believes the sheer number of filings confirms NFTs and the metaverse have the attention of “corporate America.”
NFT Patents Give Companies the Edge
Kondoudis believes consumers will act on NFT patents by companies in the future.
“These trademark filings are reliable signals of future plans to use marks for the products and services listed in the applications.”
Ralph Kalsi, CEO at Blockchain Australia, stated that companies should explore the NFT space for growth.
Kalsi said as NFTs continue to gain popularity, companies holding patents in the space can capitalize on the possible growth by licensing their technology or developing their own NFT-based products and services.
He believes the NFT patent space is a “promising area” that can establish a company as a leader by being an early adopter of NFT technology.
Related: US trademark and Copyright Offices to Study IP Impact of NFTs
He added that it’s advantageous in the early stage of NFTs to own related patents as it could provide a competitive edge and prevent others from using “similar technology without permission.”
Kondoudis’ Jan. 5 tweet stated that NFT applications totaled 7,746 in 2022. This represents a 260% increase over 2021.
The pace of new trademark applications continues to slow for NFTs and related goods/services. Only 341 trademark applications were filed in December, less than 1/3 of those filed in March.
2022 Total: 7746
2021 Total: 2154
2020 Total: 27#NFTs #Web3 #NFTCommmunity #Metaverse #MetaverseNFT pic.twitter.com/KneGIl0WxJ— Mike Kondoudis (@KondoudisLaw) January 5, 2023
Separate tweet On the same day, he also added 5,850 applications related to the metaverse last year. This is almost 206% more than 2021.