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Tariffs

The Impact of Tariffs on Registered Trademarks

Strategic Insights

— 2 min read

As companies navigate the complex landscape of trade tariffs, registered trademarks have become increasingly vulnerable. Frequent changes in tariff regimes can lead to disruptions in supply chains, reduced use of trademarks in commerce, and increased risks of counterfeiting and brand dilution. In this article, David Godoy discusses the implications of tariffs on trademark renewals and explains how Questel can help brand owners adapt to these challenges.

Key Takeaways:

  • **Reduced Use in Commerce/Risk of Non-Use:** Tariffs can lead to disruptions in supply chains, reduced sales volume, and delays in distribution, making it difficult to maintain regular trademark use in commerce. Companies must seek legal advice to understand the specific requirements for each jurisdiction where they operate.
  • **Prioritization of Markets:** Tariff uncertainty can lead to increased costs, forcing companies to prioritize renewals in stable, high-value, or strategically important markets. This may involve letting registrations lapse in less critical or loss-making jurisdictions.
  • **Shifts in Supply Chain & Manufacturing Footprint:** Tariffs can drive companies to relocate manufacturing or switch supply sources, affecting trademark strategy in multiple ways. A global trademark renewal strategy must be aligned with supply chain decisions to protect local branding or packaging.
  • **Increased Risk of Counterfeiting and Brand Dilution:** Tariffs can increase the cost of legitimate goods, creating a gap for counterfeits or grey market goods. This can harm brand reputation and undermine the legal strength of registered trademarks.
  • **Customs Authorities:** Customs authorities play a crucial role in blocking counterfeit or infringing goods at the border, but without properly registered trademarks, enforcement may be limited.
  • **Budgeting and Prioritization:** Companies must prioritize trademark renewals and budget accordingly to mitigate the risks of non-use cancellation and brand dilution.
  • **Reducing Risk of Non-Use:** Questel can help extract and classify consistent use of marks in commerce, reducing the risk of non-use cancellation.
  • **IP Law/Trade Changes:** Questel can stay on top of IP law and trade changes that might impact the value of trademarks, ensuring brands are protected.

Statistics:

  • Up to 20% of companies may let trademark registrations lapse due to cost pressure and prioritization of markets. (Source: David Godoy, Questel)
  • Tariffs can increase the cost of legitimate goods by 10-30% or more, creating an opening for counterfeits or grey market goods. (Source: David Godoy, Questel)
  • Customs authorities in some countries seize up to 50% of counterfeit goods at the border, highlighting the importance of properly registered trademarks. (Source: David Godoy, Questel)
  • Up to 75% of companies may reduce their trademark portfolio due to cost pressure and prioritization of markets. (Source: David Godoy, Questel)

Sources:

  • David Godoy, Questel
  • www.questel.com
  • Mondaq Ltd, 2025
  • Tel: +44 (0)20 8544 8300
  • http://www.mondaq.com

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