Corporate America has finally taken notice of Web3 — US trademark lawyer

Seeing the big selection of trademark applications filed this year hints that mainstream adoption of Web3 know-how is inevitable and likewise reveals that the ecosystem has the potential to develop and thrive sooner or later.

CT: Primarily based on filed trademark functions for the Web3 ecosystem, what do you consider the way forward for Web3 (blockchain tech just like the metaverse, cryptocurrency and NFTs) will seem like? 

MK: I feel the longer term is vibrant and that mainstream adoption is inevitable. There are positively macroeconomic forces and regulatory challenges to beat within the close to time period. However, based mostly on the Web3 trademarking exercise I’ve seen, there are numerous main manufacturers which can be making ready to significantly spend money on 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 consider corporations submitting for emblems within the metaverse, cryptocurrency and NFT house are enjoying an important position within the adoption of blockchain-based applied sciences?

MK: Sure, I consider that the businesses submitting new trademark functions 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 have to be overcome for the widespread adoption of Web3, and that’s going to take time and cash. As we speak’s Web3 trademark filers signify the financial catalysts to fund the funding wanted to beat the technological challenges. And, their funding will, over time, deliver the know-how inside attain of smaller and extra modest corporations.

All kinds of corporations — together with healthcare, insurance coverage and alcohol manufacturers — have all filed emblems for NFT-, cryptocurrency- and metaverse-related exercise. Nevertheless, these given examples could not be capable of navigate the house as simply as different manufacturers, akin to clothes corporations, resulting from regulatory hurdles they should overcome to totally combine with the house.

CT: Do you suppose corporations could have to beat and navigate regulatory challenges earlier than having the ability to navigate the Web3 house?

MK: I feel that it is a sector-by-sector problem. In additional closely regulated industries like healthcare and insurance coverage, for instance, I feel there might be some rising pains as corporations attempt to adjust to rules that will not have been written with Web3 in thoughts. In distinction, industries with fewer regulatory burdens like attire or luxurious items appear to have had a better path to Web3.

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

MK: One of many enticing elements of emblems is that they aren’t costly to file. Many new Web3 trademark functions may be professionally ready and filed for lower than $2,000. This makes them a relative cut price, particularly when in comparison with the prices of preventing a model dispute with no federal trademark registration.

CT: Do you suppose the cryptocurrency bear market has negatively impacted the variety of corporations 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 influence on the variety of new Web3 trademark functions. The variety of new trademark filings for the Web3 ecosystem has declined by about 40% over the second half of 2022.

An extended bear market and present market situations 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 12 months could not essentially see progress within the variety of emblems functions filed for the ecosystem, resulting from numerous elements akin 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 functions for the Net 3 house filed subsequent 12 months? 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 12 months. This lower seems to be in response to issues about recession, different macroeconomic issues, and the cryptocurrency bear market. Since these issues will seemingly 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 important. 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 economic system of Web3. That’s why so many corporations have been submitting Web3 trademark functions. 

The preliminary rush to file Web3 trademark functions appears to have run its course. We at the moment are seeing the combination 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 functions together with conventional or “actual world” services and products.