TRADEMARKS, NOW
TRADEMARK INDUSTRY REVIEW Q1 2017
CONTENTS
From the Editor (4) Personal Care, Beauty and Fast-Moving Consumer Goods (33) CEO Interview (5) - Introduction (34) - Product Class Trends (34) From the Engine Room (7) - Regional Trends (34) - 1. L’Oreal (35) Global Trends (8) - 2. Unilever (36) - TM Volume by Product Class (8) - 3. LG Household & Health Care (37) - TM Volume by Country (9) - 4. Amorepacific Group (38) - Rankings: The 50 Fastest-Growing TM Portfolios (10) - 5. Kao Corp (39) - Takeaways (11)
Pharmaceuticals and Medical Devices (40) Clothing, Apparel & Luxury Goods (12) - Introduction (41) - Introduction (13) - Product Class Trends (41) - Product Class Trends (13) - Regional Trends (41) - Regional Trends (13) - 1. Johnson & Johnson (42) - 1. LVMH Moet Hennessy Louis Vuitton SE (14) - 2. Bayer Group (43) - 2. L Brands Inc (15) - 3. Merck & Co (44) - 3. VF Corporation (16) - 4. Novartis (45) - 4. Kering SA (17) - 5. GlaxoSmithKline (46) - 5. Cie Financiere Richemont SA (18)
Retail (47) Food & Beverages (19) - Introduction (48) - Introduction (20) - Product Class Trends (48) - Product Class Trends (20) - Regional Trends (48) - Regional Trends (20) - 1. Coppel (49) - 1. Nestle (21) - 2. Schwarz Gruppe GmbH (50) - 2. ORION Corp (22) - 3. Abercrombie & Fitch Co (51) - 3. PepsiCo (23) - 4. Walmart (52) - 4. Grupo Bimbo (24) - 5. E-Mart Inc (53) - 5. Haribo (25)
Media, Entertainment & Games (26) Technology Hardware, Software & - Introduction (27) Internet (54) - Product Class Trends (27) - Introduction (55) - Regional Trends (27) - Product Class Trends (55) - 1. Time Warner Inc (28) - Regional Trends (55) - 2. Comcast Corp (29) - 1. Tencent Holdings Ltd 56 - 3. Walt Disney Co (30) - 2. LG Electronics (57) - 4. International Game Technology PLC (31) - 3. LeEco (58) - 5. Viacom Inc (32) - 4. Apple Inc (59) - 5. Alibaba Group (60)
Appendix: 3 Trademark Registries Included in This Report (61) FROM THE EDITOR
Who’s filing the most new
Trademarks?
It’s a question that is of perennial interest to both the legal and business communities, from both an overall risk standpoint, and a strategic/competitive perspective. Legal teams, of course, are always interested to know if their firms (or client firms) are keeping up with their competitors in terms of brand protection in their industries around the globe. Corporate strategists, likewise, are keen to uncover any early-warning signals that other companies in their space are innovating in new ways.
Trademark activity has also been of interest to economists, academics and policy makers, who in recent years have demonstrated a clear correlation between companies’ trademark activity and innovation (defined, in one such study, as “share of sales coming from new products and new services” ¹). In sum: innova- tor companies tend to apply for more trademarks than imitators, all else (sector, company size, etc.) being equal. These studies have also indicated that “firms are more likely to use trademarks when they are large, when they gauge the risk of imitation by competitors to be high and when they are active in terms of exports.”2
Looking at our rankings of the most-active trademark portfolios across different industries, we certainly concur.
Welcome to the inaugural TrademarkNow summary of global trademark trends. With access to over 90% of the world’s registered trademark information by volume, and lots of nifty data-processing tools, we at TrademarkNow are often interested ourselves in looking at this kind of information – and we thought we’d share some of what we found interesting.
We’ll likely continue to evolve the format of this report in subsequent issues, and your feedback is very welcome. Please visit us at trademarknow.com/industry-report to see the digital version of this report, and provide your comments.
Thanks and happy reading!
Charlie Hill Head of Product, TrademarkNow
4 1. Schmoch, U. (2003). Service marks as novel innovation indicator. Research Evaluation, pp. 149-156. 2. Castaldi, C. (2016). Trademarks, innovation and economic performances. European Commission, Joint Research Centre, p. 6. CEO Interview
TrademarkNow is a company focused on transforming the working lives of professionals in the industry by virtue of creating the possibility of instant access to information about trademarks and their owners all over the globe. We envision a world in which search and watch reports contain not only comprehensive results but are ranked in order of threat level to permit speed in an industry in which faster responses are increasingly critical. We are committed to the mission of providing the kind of access to the key data that our clients, col- leagues and professionals would have dreamed of – if Mikael Kolehmainen they had thought it was possible. CEO, TrademarkNow
One of the many challenges inherent in this industry is The woman who would become our Chief Scientist, the lack of visibility and information. Many professionals Anna Ronkainen, was speaking at the event and I met admit that they are often choosing between what is con- her afterwards. sidered ‘best practice’ and what is a realistic option for their clients or the companies they represent. Compre- Can you remember the moment hensive data on trademark applications, industry trends, you decided to go for it? Nice Class populations and global activity that would enhance the advice they can give, has been difficult to I had just made an exit from one of the angel investments come by. As the years have passed, legacy providers I made. At the same time, my employer was going through have consistently failed to embrace this challenge and an acquisition that would have meant adjusting to a new provide practitioners with viable alternatives. way of things in any case. So, everything seemed to line up to take the leap. As we celebrate the first edition of our industry report ‘Trademarks, Now’, we take a look back at the inspiration What inspired the idea? and history behind TrademarkNow. Our CEO, Mikael Kolehmainen, explains how and why he and the other Clients frequently asked for a faster way of doing things founders developed the platform. especially in the clearance space where TrademarkNow got started. They had some pretty simple requests, but with the legacy systems available, you could not fulfil What were you doing before them without burning through your client’s budget. On TrademarkNow? top of this, a lot of the clearance work is very routine – I was a trademark attorney at a boutique IP law firm for finding a way to collect data, collecting the data, analys- 8 years and did some small angel investing on the side. ing the data and repeating the same process day in, day out. I am also quite a big sci-fi fan, so the idea of using AI to figure out a more modern day approach came quite Where and how did the 4 founders naturally. meet each other?
I met our CTO, Matti Kokkola, through a mutual friend. How long has the company been in Matti then brought Heikki Vesalainen on board and he development? 5 became our Chief Architect. I attended a talk on AI and trademarks at a post-graduate law student email group. Matti and I had started working on it already in 2011. … …
The rest of the founders joined in early 2012 and the I have always been a bit of a non-conformist and come company was started in the Summer of 2012. Anna had from a long line of entrepreneurs. I have always enjoyed been researching how AI applies to trademarks for about all things business, so after all the other things lined up in 15 years before that, which got us off to a flying start! life, it made sense to combine fixing the things that I had found most tedious in my work and the business element.
What milestones has it met? What was the biggest challenge 130+ customers, 35 employees and an investment round in your early years of TrademarkNow from tier 1 VCs. and how did you solve it?
I think those challenges are similar for every young How did you get up and running? business. Funding is the critical challenge solved only by We started coding at Start-up Sauna, got Lifeline Ven- successful fundraising. tures and Tekes interested and got our first office at Regus in Helsinki. I had an office without windows with Future goals and ambitions? calming red walls. Having TrademarkNow eventually serve as the ultimate platform for all things trademarks, and at least doubling Why would a qualified lawyer give it up revenues year on year going forward. and take the risk – considering the money lawyers make? Looking back now, what advice would you Being a lawyer was not really what I enjoyed doing. Wak- give to others starting on a similar path? ing up and going to work each day just got more and more difficult each day, and being unhappy at work spilt over Learn to looove fundraising. :) to my social and family life. It spiralled into an existence that was a really long way from what the 18 year old me What are you most looking forward to in had hoped for. It was time to take a long, hard look at the 2017? bigger picture. So, I started trail running with vengeance, lost tons of weight and did not go out or even meet Introducing more features, better coverage and person- friends really for about 18 months while I was processing ally also closing fundraise and growing as per plan. all this. As part of the angel investing, I was serving on a couple of boards, and enjoyed that work tremendously.
“Having TrademarkNow eventually serve as the ultimate platform for all things trademarks”
6 FROM THE ENGINE ROOM
On behalf of the TrademarkNow development graphic distribution of its trademark portfolio. team I welcome you, dear reader, to this inaugural report of trademark industry terms. We hope you The cumulative portfolio chart shows the growth find the information useful and interesting. of the portfolio as well as the six brand names with A much wider variety of statistics analysis tools the most filings with application and jurisdiction will soon provided as a part of our platform. counts and the earliest filing date for each. The top products table shows the five specific products Creating the report gave us yet another opportu- with the most applications over the past five years nity to use our unique data analytics capabilities, with a grand total and a graph for annual trends. such as analyzing the similarity of goods and ser- The “hot or not” list shows the products with the vices on the level of the individual product rather biggest relative proportional up- and downward than just class level or simple string matching, and changes against the entire portfolio. And for all our trademark owner analysis, which makes it Nice diehards, we show five-year trends for the possible to create and maintain entire trademark classes most relevant for the industry. portfolios effortlessly. Finally some caveats: The figures in this report The report opens with a global overview, followed are based on trademark applications data from by profiles of seven specific industries, with the 70 registries listed at the end of the report as some general data and profiles of the five biggest it was available to us as of May 4 2017. Generally (groups of) companies in terms of trademark this includes also unpublished applications, but in applications within each industry. some cases the data on unpublished applications can be incomplete (e.g. missing the name of the In the global overview section, we present some applicant) or missing altogether. Most significantly global statistics on the most active registries and this concerns China, where we only have data on applicants, which industries the applicants repre- published applications. Because of its significance sent and where they are from, as well as the most and impact on the overall trends, we have decided popular Nice classes, followed by an analysis of to use a correction factor in this specific case, the general trends in the trademark space across comparing major applicants’ past quarterly filing different industries. trends against the data we have and based on that estimating that we have approximately 30% of all In the industry profile overview sections, we pro- 2017 applications. vide comparisons for the five companies profiled in more detail: overall application counts for 2016, For most registries, our data does not cover all historical trends for the past 20 years, and Nice applications which have wholly expired before class distribution within the classes most relevant the computer age, which inter alia means that for the industry. We also show the combined earliest-application dates for some brands can be application counts for these companies for the a bit off sometimes. It is also worth noting that past five years in eight jurisdictions, generally our figures may in general differ from statistics including at least the five biggest plus some others published by the trademark offices themselves, with interesting trends. as they may count individual classes rather than entire applications, or exclude unserious or unpaid For each company we give a brief summary and applications altogether. some overall key figures. A map shows the geo-
Anna Ronkainen 7 Chief Scientist, TrademarkNow GLOBAL TRENDS
Trademark Volume by Product Class Among the largest-volume trademark classes in 2016 were those within the always-busy broad business-oriented categories (e.g., Class 35, Advertising & Business; Class 42, Research & Development), and the prominent Technology/ Media/Telecom categories (Class 9, Electrical & Scientific Devices; Class 41, Education & Entertainment). Clothing (Class 25) and Pharmaceuticals & Medical Supplies (Class 5) also placed near the top.
1. Advertising and business 35 5 4k 2. Electrical and scientific devices 9 404k 3. Education and entertainment 41 3 k 4. Clothing 25 2 2k 5. Research and development 42 2 1k . Pharmaceuticals and medical supplies 5 231k 7. Staple foods 30 22 k . Hotels and restaurants 43 212k . Cosmetics and cleaning preparations 3 1 5k 10. Paper goods and printed matter 16 1 1k 11. Insurance and financial 36 1 2k 12. Meats and processed foods 29 15 k 13. Construction and repair 37 130k 14. Medical, cosmetic and agricultural services 44 125k 15. Communication 38 123k 1 . Transportation and storage 39 111k 17. Light beverages 32 10 k 1 . Environmental control apparatus 11 102k 1 . Toys and sporting goods 28 102k 20. Social and legal services 45 101k 21. Wines and spirits 33 3. k 22. Leather goods 18 3.4k 23. Machinery 7 1.4k 24. Housewares and glass 21 7. k 25. Furniture and natural materials 20 . k 2 . Vehicles 12 5. k 27. Natural agricultural products 31 3.0k 2 . Jewelry 14 77.1k 2 . Medical devices 10 72.3k 30. Chemicals 1 . k 31. Metal goods 6 1.4k 32. Fabrics 24 5 .2k 33. Non-metallic building materials 19 5 .7k 34. Manufacturing 40 53. k 35. Hand tools and cutlery 8 35.0k 3 . Rubber goods 17 33.7k 37. Lubricants and fuels 4 30. k 3 . Paints 2 27. k 3 . Smokers’ articles 34 25.3k 40. Sewing supplies 26 24. k 41. Floor coverings 27 20.1k 42. Cordage and fibers 22 17.2k 43. Musical instruments 15 12.2k 44. Explosives and firearms 13 12.1k 45. arns and threads 23 .5k
8 Trademark Volume by Country By far the biggest regional story in 2016 trademarks continued to be China: the State Administration for Industry and Commerce (SAIC) in Beijing accepted 3.7 million trademark applications during the year, a 29% increase over 2015 and more than seven times(!) the filing volume of the second-busiest trademark office, the USPTO. Besides China, other newly industrialized countries - India, Brazil, Mexico, Turkey - featured prominently in the top ten globally, as international companies expanded their businesses there and sought brand protections.
1. China 3.7M 2. United States 414k 3. India 303k 4. Japan 207k 5. South Korea 1 3k . Brazil 1 2k 7. Mexico 152k . European Union 132k . Turkey 112k 10. France 0. k 11. Australia 3.5k 12. Taiwan 7 .0k 13. Argentina 7 .5k 14. Germany 72.2k 15. United Kingdom .1k 1 . Russia 4.5k 17. Spain 1. k 1 . Canada 55. k 1 . Chile 50. k 20. Italy 50.1k
9 Rankings: The 50 Fastest-Growing Trademark Portfolios Chinese social media and internet technology giant Tencent, which recently became the world’s tenth-most valuable public company, held the fastest-growing trademark portfolio in the world during 2016, with more than 4000 applications filed. Korean technology manufacturer LG Electronics was second in portfolio growth, with over 3600 filings; media titan Time Warner was third, with over 3500. Pharmaceuticals and medical devices conglomerate Johnson & Johnson and global cosmetics company L’Oreal rounded out the top five.
Trademark Applications Filed, 2016 (in Hundreds)
1. Tencent Holdings Ltd 4.1k ( 32 ) 2. LG Electronics 3. k (- ) 3. Time Warner Inc 3.5k (+1�590%) 4. Johnson & Johnson 3.2k ( 17 ) 5. L Oreal 3.1k (+19%) . Coppel 2. k (+196%) 7. Merck & Co 2.7k (+69%) . Unilever 2.5k (-99%) 9. Novartis 2.2k (-74 ) 10. LeEco 2.2k ( 174 ) 11. Comcast Corp 2.1k (+50%) 12. LVMH SE 2.1k ( 4 ) 13. Bayer Group 2.0k (+19%) 14. GlaxoSmithKline 1.9k (+59%) 15. LG Household & Health Care 1.9k (-75 ) 1 . Apple Inc 1. k (- 2 ) 17. Philip Morris 1. k ( 21 ) 1 . Alibaba Group 1.7k (-95%) 19. Amorepacific Group 1.7k ( 12 ) 20. Samsung Electronics 1.7k (-100%) 21. Nestle 1. k (-96%) 22. Philips 1. k (- 2 ) 23. Merck KGaA 1. k ( 1 ) 24. Huawei Technologies 1. k (-71 ) 25. Alphabet Inc 1.5k ( 4 ) 2 . Bayerische Motoren Werke 1.5k ( 5 ) 27. ORION Corp 1.5k (+1�114%) 2 . Kao Corp 1.5k ( 24 ) 29. PepsiCo 1.5k ( ) 30. Procter & Gamble 1.5k (-90%) 31. Shiseido Co Ltd 1.3k (-94%) 32. Grupo Bimbo 1.2k (-98%) 33. Walt Disney Co 1.1k (-80%) 34. CH Boehringer Sohn AG 1.1k (-80%) 35. Schwarz Gruppe GmbH 1.1k ( 27 ) 3 . Colgate Palmolive 1.1k ( 5 ) 37. Leshi Internet Info & Tech Corp 1.1k (- ) 3 . Daimler AG 1.1k ( 21 ) 39. Baidu Inc 1.1k ( 2 ) 40. Volkswagen AG 1.0k (-7 ) 41. Hyundai Motor Co 1.0k ( ) 42. Abercrombie & Fitch Co 973 ( 5 ) 43. Sanofi 942 (-91%) 44. Walmart 932 ( 21 ) 45. L Brands Inc 922 (+60%) 4 . BASF SE 917 (+59%) 47. Bristol-Meyers Squibb 911 (+207%) 4 . Toyota Motor Corp 894 (- 1 ) 49. VF Corporation 840 (-91%) 50. Amazon.com Inc 37 ( 15 )
Industries In terms of industry-sector representation among the fastest-growing companies in trademarks, the “big three” sectors in 2016 were Technology Hardware, Software & Internet, with 12 (24%) of the Top 50 companies; Pharmaceuticals & Medical Devices, with 9; and Personal Care, Beauty & Fast Moving Consumer Goods, with 8. Automotive (5), 10 Food & Beverages (4); Retail (4); Clothing, Apparel & Luxury Goods (3); Media, Entertainment & Games (3); Energy & Industrials (1); and Tobacco (1) companies completed our Top 50. Industries
1. Technology Hardware, Software & Internet 12
2. Pharmaceuticals & Medical Devices
3. Personal Care, Beauty & Fast-Moving Consumer Goods 4. Automotive 5
5. Food & Beverages 4