“Those who decide to remain on the Ukrainian market after the war should carefully monitor the timing of the end of martial law so as not to lose their trademark rights.”
A company’s trademark activity is a very important indicator of whether it is interested in the market of a particular country or region.
A country’s Intellectual Property (IP) Office or the World Intellectual Property Organization’s (WIPO) IP Registry can often have the loudest say about a company’s true intentions.
The full-scale Russian invasion of Ukraine began on February 24, 2022. It is useful to find out how foreign companies behaved regarding her IP registration and renewal in Ukraine to predict future business prospects in Ukraine.
Most of the data below is taken from the Ukrainian Intellectual Property Office database.
what the numbers say
As of the end of 2021, Ukraine had over 211,000 active trademarks. Of these, about 40% belonged to foreigners (the actual figure is slightly lower, as a significant number of trademarks are registered in companies in offshore jurisdictions owned by Ukrainians).
Despite the fact that the US is not among Ukraine’s top five largest trading partners, US companies hold the largest share of foreign-owned brands in Ukraine, according to the National Statistics Service of Ukraine. A quarter of the trademarks owned by non-residents are owned by US companies.
Between February 24, 2022 and February 1, 2023, 2,067 trademarks owned by foreigners were renewed. 4,914 were not updated.
Therefore, the percentage of extensions since the start of the war was only 30%. The global average renewal rate is about 80%.
The number of valid trademarks submitted for registration via the Madrid Protocol denoting Ukraine also fell by more than 2,000 to 140,000.
Among US companies with the largest number of trademarks in Ukraine not renewed on time in 2022 or 2023, Johnson & Johnson and Nicken International are leaders with 38 and 35 trademarks respectively. It turns out.
Many trademarks are also owned by The Procter & Gamble Company (32), Merck Sharp & Dohme (29), American Norton Corporation (23), Colgate-Palmolive Company (20), Amvilab (12), Google Inc./LLC. It was not updated. (11), General Motors (10). The American division of British American Tobacco (Brands), Inc. has 60 such registrations.
In total, over 200 American companies and individuals are on the list.
However, The Procter & Gamble Company, Colgate-Palmolive Company, and Johnson & Johnson have extended some of their trademarks.
Trademark Rights in Ukraine under Martial Law
However, please note that companies that have not renewed their trademarks in time have not yet lost their rights to their trademarks in Ukraine.
According to the law adopted at the beginning of the war, the terms of protection of intellectual property rights will be suspended during the period of martial law.
If the date of the renewal of the trademark certificate falls on the date of the introduction of martial law in Ukraine or another date during martial law, the action to extend the validity period of the trademark certificate shall be considered completed. increase. On time if completed within 90 days from the day following the termination or lifting of martial law.
Intellectual property rights that expire on the date of the introduction of martial law in Ukraine or during the period of martial law shall remain in effect until the day after the date of termination of martial law.
Ukraine provides a 6-month grace period to extend the validity of a trademark if the owner has not requested renewal before the expiration date.
Therefore, since the introduction of martial law in Ukraine on February 24, 2022, trademark rights will continue to apply to marks that expire after August 24, 2021, regardless of whether renewal fees have been paid. valid.
For trademark registrations that expired between August 24, 2021 and February 23, 2022, those rights will be renewed one day after the end of Martial Law, if no renewal application has been previously filed. need to do it.
For trademarks that have expired between February 24, 2022 and the end of Martial Law and have not been renewed, there will be a 3-month grace period (50% higher fee) to renew the trademark at standard fees. increase). The Ukrainian Intellectual Property Office may provide updated guidance in this regard in the future.
I’m looking forward to
Despite significant financial and military support for Ukraine by the United States and other NATO countries, US corporate trademark activity does not inspire confidence that the war in Ukraine is imminent. .
Those who decide to remain on the Ukrainian market after the war should carefully monitor the timing of the end of martial law so as not to lose their trademark rights. And the number of such companies will only increase if the rate of trademark renewals does not change in 2023. In 2023, his more than 3,600 non-resident trademark registrations will expire, of which 700 will be US brands. is.
On the contrary, some US companies have decided to extend their trademarks without waiting for war. For example, Alticor, Inc. has extended rights to 17 trademarks for an additional 10 years. Mars Inc. expanded 21 trademarks, Mary Kay expanded 19 trademarks, and Unipharm Inc. expanded 13 trademarks. Starbucks Corporation has expanded its six registered trademarks despite having no coffee shops in Ukraine.
Overall, interest in trademark registration began to recover from around May 2022. In March 2022, he was only 33% of his March 2021 trademark filings, but by the end of 2022 he had risen to 58%.
In terms of the number of patents entering the national phase under the Patent Cooperation Treaty procedure, the volume at the end of 2022 is only 4% lower than in 2021, surpassing the pre-war figures for monthly patent applications. . July 2022.
Thus, by deciding to postpone the renewal, some are pursuing an overly conservative policy regarding the protection of intellectual property rights in Ukraine, while others are already seeking resources without waiting for the end of the war. Some people are starting to invest in
