This year there has been an influx of trademark applications filed by various companies wanting to participate in the Web3 promotion. As of November, a total of 4,999 trademark applications for cryptocurrencies and digital-related goods and services have been filed in the United States, according to U.S. Patent and Trademark Office-licensed trademark attorney Mike Kondoudis.
Kondoudis believes the future of the Web3 ecosystem looks “bright” and “wide adoption is inevitable.” To learn more about the impact of submitted Web3 trademark applications on the future of the Web3 ecosystem, Cointelegraph interviewed Kondoudis.
Cointelegraph has handled a wide range of trademark filings in 2022, from luxury brands like Hermès to car brands like Ford, all of which have made bids for the Web3 ecosystem. In our interview, Kondoudis revealed that he was surprised by the range and mix of companies filing trademark applications for the Web3 ecosystem.
Cointelegraph: What surprised you most about the Web3 space trademark filings this year? Any interesting observations from your point of view?
Mike Kondoudis: One of the biggest surprises is the different sectors represented in this year’s Web3 trademark filings. We saw submissions from grocery stores, pet food brands, sports teams and leagues, cities and attractions, casinos/gambling companies, and even game shows. This was the year that Web3 seemed to get the attention of American businesses.
CT: Were you surprised by the type of companies that have filed trademark applications for the Web3 ecosystem? Do you have statistics on the type of companies that have signed up for the most brands in the Web3 space? For example, was it food companies, alcohol companies, or car companies?
MK: Yes, there were some surprises this year and the wave of new Web3 trademark filings included some curious trademark filings. For example, we saw Web3 trademark applications from car rental companies. It’s not entirely clear how big the market for virtual car rentals or rental car NFTs could be in the metaverse.
At the same time, we saw some sectors that were saturated – all the big players were filing Web3 trademark applications. Some of these sectors include Fast Food, Financial Services, Clothing/Apparel, Luxury Goods and Footwear.
The wide range of trademark applications filed this year suggests that widespread adoption of Web3 technology is inevitable and also shows that the ecosystem has the potential to grow and thrive in the future.
CT: Based on trademark applications filed for the Web3 ecosystem, how do you think the future of Web3 (blockchain technology like Metaverse, cryptocurrency and NFTs) will be?
MK: I think the future is bright and mainstream takeover is inevitable. There are definitely macroeconomic forces and regulatory challenges that need to be addressed in the near term. But based on the Web3 brand activity I’ve seen, there are many big brands preparing to invest seriously in Web3 because they recognize the benefits and opportunities that blockchain technologies offer. This investment should provide continued momentum toward adoption of the Web3 ecosystem.
CT: Do you think that companies filing trademarks in the metaverse, cryptocurrency and NFT space will play a crucial role in the adoption of blockchain-based technologies?
MK: Yes, I believe that the companies filing new trademark applications in these areas are crucial for the widespread adoption and implementation of Web3 and blockchain-based technologies. There are several technological challenges that need to be overcome for widespread adoption of Web3, and that will cost money and time. Today’s Web3 trademark applicants represent the economic catalysts to fund the investments needed to meet technology challenges. And their investment will, over time, make the technology more accessible to smaller and more humble businesses.
A variety of companies — including healthcare, insurance, and alcohol brands — have all filed trademarks for NFT, cryptocurrency, and Metaverse-related activities. However, these examples mentioned may not be as easy to adopt as other brands, such as , due to regulatory hurdles they must overcome to fully integrate into the space. B. clothing company, find your way around the room.
CT: Do you think companies may need to overcome and overcome regulatory challenges before being able to navigate the Web3 space?
MK: I think this is a sector specific problem. For example, in more regulated industries like healthcare and insurance, I think there will be some issues as companies try to comply with regulations that may not have been written with Web3 in mind. In contrast, industries with less regulatory burdens such as apparel or luxury goods seem to have had an easier route to Web3.
CT: Is registering trademarks for the Web3 ecosystem expensive? On average, how much do you think companies pay to file Web3-based trademark applications?
MK: One of the attractive aspects of brands is that they are not expensive to register. Many new Web3 trademark applications can be professionally prepared and filed for less than $2,000. This makes them a relatively cheap price, especially when compared to the cost of fighting a trademark dispute without nationwide trademark filing.
CT: Do you think the cryptocurrency bear market has negatively impacted the number of companies that have registered trademarks in the Web3 ecosystem?
MK: Yes, the difficulties in the cryptocurrency market, coupled with concerns about a broader economic downturn, appear to have had a significant impact on the number of new Web3 token filings. The number of new trademark applications for the Web3 ecosystem has decreased by about 40% in the second half of 2022.
A long bear market and the current market conditions, exacerbated by the sudden collapse of FTX, have taken a toll on the entire ecosystem. Although the business potential of the Web3 ecosystem is still huge, Kondoudis predicts that the number of trademark applications filed for the ecosystem will increase over the next year due to various factors such as a bear market with no end in sight and a widely anticipated economic downturn.
CT: Do you expect to see an increase in Web 3 trademark filings over the next year? Or do you expect things to slow down?
MK: We don’t expect an increase. We expect about the same number of registrations.
The number of new Web3 trademark applications has decreased in the second half of this year. This decline appears to be in response to concerns about a recession, other macroeconomic concerns, and the cryptocurrency bear market. As these concerns are likely to continue into 2023, we expect their impact to continue as well.
CT: Any relevant thoughts and comments on brands submitted for the Web3 ecosystem, as well as your thoughts/opinions on blockchain technologies like metaverse, cryptocurrency and NFTs?
MK: The business potential of the Web3 ecosystem is significant. And despite the current headwinds, Web3 will continue to move toward mainstream adoption for years to come. Brands need to be protected in this ecosystem just as they are in the “real world” today. They also need protection as they transition and/or expand in the Web3 virtual economy. This is why so many companies have filed Web3 trademark applications.
The initial rush to file Web3 trademark applications seems to have run its course. We are now seeing the integration of Web3 products and services into mainstream branding strategies. In the future, I would expect NFT, crypto and metaverse products and services to be included in trademark applications along with traditional or “real world” products and services.