Trade marks and global expansion: how to avoid costly roadblocks

The Risk: Same Mark, Different Owner

Imagine this: your brand is gaining momentum in the UK, and you are ready to launch in the US. You have lined up distributors, translated your packaging, and set a launch date. Then comes the shock - your brand name is already registered as a trade mark by someone else in the US. Not only will you now struggle to get your brand name registered as a trade mark in the US, but using your brand name in the US could be trade mark infringement and you could face legal action if you proceed. Suddenly, you are looking at emergency rebranding, delayed market entry, and a significant loss of time and investment.

Trade Mark Squatters and Opportunists

In fast-growing markets (and the main manufacturing countries) like China or India, trade mark "squatters" often keep an eye on emerging foreign brands and locally register these brands as trade marks before the business even enters the market. These squatters may then block your brand from being registered and demand a high price to sell the trade mark back - or worse, begin using it themselves. Registering your trade mark early is a straightforward way to avoid these expensive pitfalls.

Trade Mark Licenses 

Trade mark licenses are key for expanding globally, allowing businesses to grant others the right to use their brand in specific markets without transferring ownership. This strategy helps companies scale quickly while minimising risks in unfamiliar legal environments. Without a proper license, businesses risk losing control over their brand, facing legal disputes, or even having their trade mark ‘hijacked’ by local competitors. This can lead to, inter alia, costly rebranding and damage to brand reputation. Proper licensing ensures brand protection and smooth growth across international markets.

A Real-World Example

A Canadian fashion brand planned to expand into the US market, confident that their established reputation would make the transition smooth. However, in the US a different company had already obtained registered trade mark protection for a highly similar name in the same sector. This forced the Canadian company to undertake a costly rebranding effort, delaying their entry into the market and requiring them to rebuild their presence and marketing momentum from scratch.

The Solution: Search First, Register Second, Expand Last

Before entering any new territory, businesses should:

• Conduct clearance searches to ensure their trade mark is not already in use or registered.
• Register trade marks proactively in target markets.
• Plan ahead, as obtaining a trade mark registration can take several months.

Commercial Upside

Early searches and registration does not just avoid legal trouble - it protects your marketing investment, builds brand consistency, and makes expansion smoother and faster. It also signals professionalism to international partners, distributors, and investors.

Bottom Line

If global expansion is on your roadmap, trade mark protection should be too. The earlier you search abroad, the sooner you can secure trade mark protection, minimising the number of surprises you shall face - and the stronger your brand will be when it arrives.