Introduction

As industry weathers the current recession, good financial news is hard to find. OHIM’s planned fee reductions, though, certainly qualify.

The proposed cut in the overall fees for securing a CTM in three classes to around €1,000 is expected to come into force this year. Although not yet confirmed, it is expected to take the form of the abolition of the registration fee, so that official fees will only be payable upon filing.

This windfall comes at a time when industry is assessing its brand protection strategies with a critical eye due to falling budgets and the need to cut costs wherever possible. A saving in official fees will free up budgetary spend and enable brand protection cash to stretch a little further.

Such stretching is essential. Although in lean times brand protection budgets are often the first to be cut, industry can ill afford the costly risks associated with failure to search, clear and protect new brands. Delaying new brands is not an option where stiffening competition for fewer consumer pounds makes innovation and memorable marketing critical for survival.

For companies that need to cut back, an audit of existing protection and a consultation on current and future plans can help trim expenses on projects that no longer matter in favour of new projects of importance. Registrations for dead brands may be dropped, thereby saving renewal fees. Oppositions at the periphery of commercial interest might be settled. New searching projects might be staggered to allow for spreading of costs. Filings might be staggered to take advantage of priority periods.

There are many ways, both creative and prosaic, for brand owners to cut back without cutting into their key rights. This does not mean that the recession will not be painful; all the evidence is that it will. However, it does mean that by working with their advisors, brand owners can find ways to alleviate the hardship and reduce its impact on brand protection.

When at last the recession ebbs, the care invested will pay off in a sharper competitive edge for a brighter future. We at Jenkins are happy to advise on appropriate strategies to help our clients get there; please feel free to contact the Trade Marks Group to discuss.