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Submarine Trademarks

Author

Listed:
  • Carsten Fink
  • Andrea Fosfuri
  • Christian Helmers
  • Amanda F. Myers

Abstract

Companies use trademarks to protect their brands from outright imitation or competition by confusingly similar products. However, publication of trademark filings by the trademark office discloses information about a firm's new product or service. This creates a trade-off between legal protection and disclosure of information. We analyze the trade-off through the lens of 'submarine trademarks' in the U.S. – submarine trademarks are trademarks whose publication and hence disclosure to the public is strategically delayed. This is achieved through a particular international filing strategy that is often combined with the use of shell companies to further conceal the trademark filing. These submarine strategies allow companies to benefit from legal trademark protection while reducing the risk of inadvertent disclosure of information. We provide the first systematic evidence of submarine trademarks and explore both their determinants and their effectiveness in reducing the disclosure of information.

Suggested Citation

  • Carsten Fink & Andrea Fosfuri & Christian Helmers & Amanda F. Myers, 2018. "Submarine Trademarks," WIPO Economic Research Working Papers 51, World Intellectual Property Organization - Economics and Statistics Division.
    • Handle: RePEc:wip:wpaper:51
    as

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    File URL: https://www.wipo.int/edocs/pubdocs/en/wipo_pub_econstat_wp_51.pdf
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    References listed on IDEAS

    as
    1. Stuart J.H. Graham & Galen Hancock & Alan C. Marco & Amanda Fila Myers, 2013. "The USPTO Trademark Case Files Dataset: Descriptions, Lessons, and Insights," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(4), pages 669-705, December.
    2. Christine Greenhalgh & Mark Rogers, 2012. "Trade Marks and Performance in Services and Manufacturing Firms: Evidence of Schumpeterian Competition through Innovation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 45(1), pages 50-76, February.
    3. Violina P. Rindova & Antoaneta P. Petkova, 2007. "When Is a New Thing a Good Thing? Technological Change, Product Form Design, and Perceptions of Value for Product Innovations," Organization Science, INFORMS, vol. 18(2), pages 217-232, April.
    4. Bronwyn Hall & Christian Helmers & Mark Rogers & Vania Sena, 2014. "The Choice between Formal and Informal Intellectual Property: A Review," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 375-423, June.
    5. Fink, Carsten & Helmers, Christian & Ponce, Carlos J., 2018. "Trademark squatters: Theory and evidence from Chile," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 340-371.
    6. Andrea Fosfuri & Marco S. Giarratana, 2009. "Masters of War: Rivals' Product Innovation and New Advertising in Mature Product Markets," Management Science, INFORMS, vol. 55(2), pages 181-191, February.
    7. Emin M. Dinlersoz & Nathan Goldschlag & Amanda Myers & Nikolas Zolas, 2018. "An Anatomy of US Firms Seeking Trademark Registration," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 183-228, National Bureau of Economic Research, Inc.
    8. Bart J. Bronnenberg & Jean-Pierre Dubé, 2017. "The Formation of Consumer Brand Preferences," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 353-382, September.
    9. Block, Joern H. & De Vries, Geertjan & Schumann, Jan H. & Sandner, Philipp, 2014. "Trademarks and venture capital valuation," Journal of Business Venturing, Elsevier, vol. 29(4), pages 525-542.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trademark; submarine; strategic behavior; secrecy; product innovation;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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