Non-fungible tokens (NFTs) are increasingly being adopted by companies and individual users who want to interact with customers while aiming to capitalize on the value offered by digital artifacts.
According to data obtained by Finbold, known for his financial reviews, in 2021 NFT-related trademarks in the US remained at 1,263, and when we take into account that there were three applications in 2020, we see that it has grown 421 times. In 2021, the highest number of trademark applications was registered with 407 in December. Whereas, in January of 2021, there were zero trademark applications.
Overall, applications have accelerated in the last six months, increasing 552.17% between August 2021 and January 2022. Notably, the United States Patent and Trademark Office (USPTO) received the highest number of applications ever with 450 in January.
Data on NFT trademark applications are provided by USPTO licensed trademark and patent attorney Michael Kondoudis (The Law Office of Michael E. Kondoudis).
Trademark applications arise when NFTs spark curiosity, excitement, skepticism, and enthusiasm over their potential prospects. The filings point to the need for companies and individuals to enter the blockchain space to protect their brands and rely on the industry's potential.
The need to file trademarks has been necessitated by several factors, including the growing goal of eliminating fake copies. For example, OpenSean, an NFT marketplace, has revealed that many printed collectibles on the platforms are plagiarized artifacts, counterfeit collectibles, or spam.
In general, trademarks will enable most brands to monetize intellectual property without physical goods. In general, if brands fail to protect against fraud, this can have lasting effects as consumers may feel cheated if counterfeit products come to market.
Singapore Not Considering Regulating NFTs
Tharman Shanmugaratnam, the minister who runs the Monetary Authority of Singapore (MAS), said they have no plans to regulate NFTs. Shanmugaratnam's statement came in written form in response to questions posed by the country's parliament. According to Shanmugaratnam, the regulator is taking a “technology-neutral” stance towards NFTs, even as crypto collectibles become more popular in South East Asia.