Company America has lastly taken discover of Web3 — US trademark lawyer

by Jeremy

This yr noticed an inflow of trademark purposes filed by numerous firms seeking to get in on the Web3 motion. By November, a complete of 4,999 trademark purposes had been filed in the US for cryptocurrencies and digital-related items and companies — based on United States Patent and Trademark Workplace-licensed trademark lawyer Mike Kondoudis. 

Kondoudis believes the way forward for the Web3 ecosystem appears to be like “vibrant” and “mainstream adoption is inevitable.” To be taught extra in regards to the affect of Web3 trademark purposes filed on the way forward for the Web3 ecosystem, Cointelegraph interviewed Kondoudis.

Cointelegraph has coated a variety of trademark utility tales in 2022, starting from luxurious manufacturers similar to Hermès to automotive manufacturers like Ford, all making a bid for the Web3 ecosystem. In our interview, Kondoudis revealed that he was shocked by the scope and mixture of firms that havefiled trademark purposes for the Web3 ecosystem.

Cointelegraph: What shocked you most about filed trademark purposes for the Web3 area this yr? Any attention-grabbing observations out of your perspective?

Mike Kondoudis: One of many largest surprises is the disparate sectors represented on this yr’s Web3 trademark purposes. We noticed filings by grocery shops, pet meals manufacturers, sports activities groups and leagues, cities and landmarks, casinos/gaming firms, and even sport exhibits. This was the yr that Web3 appeared to get the eye of company America.

CT: Had been you shocked by the sort of firms that filed trademark purposes for the Web3 ecosystem? Do you might have any statistics on the kind of firms that filed essentially the most emblems for the Web3 area? For instance, was it meals firms, booze firms or automotive firms? 

MK: Sure, there have been some surprises this yr, and the wave of recent Web3 trademark purposes included some curious trademark purposes. For instance, we noticed Web3 trademark filings by automotive rental firms. It isn’t totally clear how a lot of a market there could also be for digital automotive leases or rental automotive NFTs within the metaverse.

On the identical time, we noticed some sectors that have been saturated — the entire main gamers filed Web3 trademark purposes. A few of these sectors embrace quick meals, monetary companies, clothes/attire, luxurious items and footwear. 

Seeing the big selection of trademark purposes filed this yr hints that mainstream adoption of Web3 expertise is inevitable and in addition reveals that the ecosystem has the potential to develop and thrive sooner or later.

CT: Based mostly on filed trademark purposes for the Web3 ecosystem, what do you imagine the way forward for Web3 (blockchain tech just like the metaverse, cryptocurrency and NFTs) will seem like? 

MK: I believe the long run is vibrant and that mainstream adoption is inevitable. There are undoubtedly macroeconomic forces and regulatory challenges to beat within the close to time period. However, primarily based on the Web3 trademarking exercise I’ve seen, there are lots of main manufacturers which are making ready to noticeably put money into Web3 as a result of they acknowledge the benefits and alternatives that blockchain applied sciences supply. That funding ought to guarantee continued momentum towards the adoption of the Web3 ecosystem.

CT: Do you imagine firms submitting for emblems within the metaverse, cryptocurrency and NFT area are taking part in a vital function within the adoption of blockchain-based applied sciences?

MK: Sure, I imagine that the businesses submitting new trademark purposes in these areas are important to the widespread adoption and implementation of Web3 and blockchain-based applied sciences. There are a number of technological challenges that can should be overcome for the widespread adoption of Web3, and that’s going to take time and cash. Immediately’s Web3 trademark filers symbolize the financial catalysts to fund the funding wanted to beat the technological challenges. And, their funding will, over time, carry the expertise inside attain of smaller and extra modest firms.

All kinds of firms — together with healthcare, insurance coverage and alcohol manufacturers — have all filed emblems for NFT-, cryptocurrency- and metaverse-related exercise. Nonetheless, these given examples might not have the ability to navigate the area as simply as different manufacturers, similar to clothes firms, because of regulatory hurdles they should overcome to totally combine with the area.

CT: Do you suppose firms might have to beat and navigate regulatory challenges earlier than with the ability to navigate the Web3 area?

MK: I believe that it is a sector-by-sector difficulty. In additional closely regulated industries like healthcare and insurance coverage, for instance, I believe there can be some rising pains as firms attempt to adjust to rules that won’t have been written with Web3 in thoughts. In distinction, industries with fewer regulatory burdens like attire or luxurious items appear to have had a neater path to Web3.

CT: Are emblems for the Web3 ecosystem costly to file? How a lot do you imagine, on common, firms are paying to file for Web3-based trademark purposes? 

MK: One of many engaging features of emblems is that they aren’t costly to file. Many new Web3 trademark purposes could be professionally ready and filed for lower than $2,000. This makes them a relative discount, particularly when in comparison with the prices of preventing a model dispute with out a federal trademark registration.

CT: Do you suppose the cryptocurrency bear market has negatively impacted the variety of firms that filed for emblems within the Web3 ecosystem?

MK: Sure, the difficulties within the cryptocurrency market, coupled with issues a few broader financial downturn, appear to have had a marked affect on the variety of new Web3 trademark purposes. The variety of new trademark filings for the Web3 ecosystem has declined by about 40% over the second half of 2022.

A protracted bear market and present market circumstances exacerbated by the sudden collapse of FTX have taken a toll on the complete ecosystem. Though the enterprise potential of the Web3 ecosystem nonetheless stays huge, Kondoudis projected that subsequent yr might not essentially see progress within the variety of emblems purposes filed for the ecosystem, because of numerous components similar to a bear market with no estimated finish in sight and a broadly anticipated financial downturn.

CT: Do you count on to see a rise in trademark purposes for the Internet 3 area filed subsequent yr? Or do you count on issues to decelerate? 

MK: We don’t count on to see a rise. We count on to see about the identical variety of filings.

The variety of new Web3 trademark filings has decreased over the second half of this yr. This lower seems to be in response to issues about recession, different macroeconomic issues, and the cryptocurrency bear market. Since these issues will doubtless proceed in 2023, we count on their results to proceed as properly. 

CT: Any related ideas and feedback about emblems filed for the Web3 ecosystem, in addition to your ideas/opinions on blockchain tech just like the metaverse, cryptocurrency and NFTs? 

MK: The enterprise potential of the Web3 ecosystem is critical. And, regardless of present headwinds, Web3 goes to proceed to maneuver towards mainstream adoption within the subsequent few years. Manufacturers will want safety on this ecosystem simply as they do within the “actual world” right this moment. They’ll additionally want safety as they transition and/or develop into the digital financial system of Web3. That’s why so many firms have been submitting Web3 trademark purposes. 

The preliminary rush to file Web3 trademark purposes appears to have run its course. We at the moment are seeing the mixing of Web3 services and products into mainstream trademarking methods. Going ahead, I’d count on to see NFT, crypto and metaverse services and products included in trademark purposes together with conventional or “actual world” services and products.