Source: news.google.com
This year saw an influx of trademark applications filed by various companies looking to get in on the Web3 action. By November, a total number of 4,999 US trademark applications had been filed for cryptocurrency and related digital goods/services, according to USPTO-licensed trademark attorney Mike Kondoudis.
According to USPTO’s licensed trademark attorney, the future of the Web3 ecosystem looks “bright” and that “widespread adoption is inevitable.” Learn more about the impact of Web3 trademark applications filed on the future of the Web3 ecosystem in Cointelegraph’s interview with Mike Kondoudis below.
Cointelegraph covered a wide range of trademark filing stories in 2022, ranging from luxury brands like Hermès to car brands like Ford, all bidding on the Web3 ecosystem. In our interview, Mike Kondoudis revealed that he was surprised by the scope and mix of companies filing trademark applications for the Web3 ecosystem.
Q: What surprised you the most about the trademark applications filed for the Web3 space this year? Any interesting observations from your perspective?
One of the biggest surprises is the disparate sectors represented in this year’s Web3 trademark applications. We saw presentations from supermarkets, pet food brands, sports teams and leagues, cities and landmarks, casinos/gaming companies, and even game shows. This was the year that Web3 seemed to catch the eye of corporate America.
Q: Were you surprised by the type of companies filing trademark applications for the Web3 ecosystem? Do you have any statistics on the type of companies that filed the most trademarks for the Web3 space? (- for example: was it food companies, alcoholic beverage companies or car companies?)
Yes, there were some surprises this year, and the wave of new Web3 trademark filings included some curious trademark filings. For example, we’ve seen Web3 trademark filings from car rental companies. It’s not entirely clear how much of a market there may be for virtual car rentals or rental car NFTs in the metaverse.
At the same time, we saw some sectors that were saturated: all the major players filed Web3 trademark applications. Some of these sectors include fast food, financial services, apparel/clothing, luxury goods, and footwear.
Seeing a wide range of trademark applications filed this year indicates that widespread adoption of Web3 technology is inevitable and also reveals that the ecosystem has the potential to grow and prosper in the future. The USPTO licensed trademark attorney shared his thoughts on what he thinks the future of Web3 will look like, based on the trademark applications that have already been filed.
Q: Based on the trademark applications filed for the Web3 ecosystem, what do you think the future of Web3 (Blockchain Tech like Metaverse, Cryptocurrency, and NFT) will look like?
I believe the future is bright and widespread adoption is inevitable. There are definitely macroeconomic forces and regulatory challenges to overcome in the near term. But based on the Web3 trademark activity I’ve seen, there are many major brands preparing to seriously invest in Web3 because they recognize the advantages and opportunities that blockchain technologies offer. That investment should ensure continued momentum towards adoption of the Web3 ecosystem.
Q: Do you think that companies applying for trademarks in the Metaverse, Cryptocurrency and NFT space are playing a crucial role in the adoption of blockchain-based technologies?
Yes, I believe that companies filing new trademark applications in these spaces are essential to the widespread adoption and implementation of Web3 and blockchain-based technologies. There are several technological challenges that will need to be overcome for the widespread adoption of Web3 and that will require money and time. Today’s Web3 trademark registrants represent the economic catalysts for funding the investment needed to overcome technological challenges. And your investment will, over time, put the technology within the reach of smaller, more modest businesses.
A wide variety of companies, including healthcare, insurance, and alcohol brands, have filed trademarks for NFT, cryptocurrency, and metaverse-related activities. However, they may not be able to navigate the space as easily as other brands, such as clothing brands, due to the regulatory hurdles they must overcome to fully integrate into the space.
Q: Do you think companies may have to overcome and navigate regulatory challenges before they can navigate the Web3 space?
I think this is a sector-by-sector issue. In more heavily regulated industries like healthcare and insurance, for example, I think there will be some growing pains as companies try to comply with regulations that may not have been written with Web3 in mind. By contrast, industries with less regulatory burdens, such as clothing or luxury goods, appear to have had an easier path to Web3.
Q: Is filing trademarks for the Web3 ecosystem expensive? How much do you think, on average, companies pay to file Web3-based trademark applications?
One of the attractive aspects of trademarks is that they are not expensive to file. Many new Web3 trademark applications can be professionally prepared and filed for less than $2,000. This makes them a relative bargain, especially when compared to the costs of fighting a trademark dispute without a federal trademark registration.
Q: Do you think the cryptocurrency bear market negatively affected the number of companies applying for trademarks in the Web3 ecosystem?
Yes, difficulties in the cryptocurrency market, coupled with concerns about a broader economic downturn, appear to have had a marked impact on the number of new Web3 trademark applications. The number of new trademark applications for the Web3 ecosystem has decreased by approximately 40% during the second half of 2022.
A prolonged bear market and current market conditions exacerbated by the sudden collapse of FTX have affected the entire ecosystem. While the business potential of the Web3 ecosystem remains huge, Kondoudis projected that the next year will not necessarily see growth in the number of trademark applications filed for the ecosystem, due to various factors such as; a bear market with no estimated end in sight and a widely anticipated economic downturn.
Q: Do you expect to see an increase in trademark applications for the Web 3 space filed next year? Or do you expect things to slow down?
We do not expect to see an increase. We expect to see roughly the same number of submissions.
The number of new Web3 trademark applications has decreased during the second half of this year. This decline appears to be a response to concerns about the recession, other macroeconomic concerns, and the cryptocurrency bear market. Given that these concerns are likely to continue into 2023, we expect their effects to continue as well.
Q: Any relevant thoughts and comments on registered trademarks for the Web3 ecosystem, as well as your thoughts/opinions on Blockchain Tech such as Metaverse, Cryptocurrency and NFT?
The commercial potential of the Web3 ecosystem is significant. And despite the current headwinds, Web3 will continue to push toward mainstream adoption for years to come. Brands will need protection in this ecosystem just as they do in the “real world” today. They will also need protection as they transition and/or expand into the virtual economy of Web3. That is why so many companies have been filing Web3 trademark applications.
The initial rush to file Web3 trademark applications appears to have run its course. We are now seeing the integration of Web3 products and services into major trademark strategies. In the future, I would expect to see NFT, Crypto, and Metaverse products and services included in trademark applications alongside traditional or “real world” products and services.
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