NFT trademark applications soar

The rising popularity of non-fungible tokens presents opportunities for businesses and brands seeking to integrate the virtual world's into their operations. Brands and individuals are therefore increasingly focused on obtaining trademarks to protect future NFT related products even as the sector continues to take shape.

According to data acquired by Finbold, in 2021, the United States Patent and Trademark Office (USPTO) received 1,263 NFT related trademarks. The figure represents a 421 fold growth from the 2020s three filings. The highest trademark filing was recorded in December at 407, while January had zero trademarks.

Following the increasing potential of NFTs, the filings have spiked in the last six months to record a growth of 552.17% between August 2021 and January 2022. Elsewhere, January 2022, registered a record filing at 450, which translates to about 15 applications per day. From February last year, the applications have grown by a whopping 11,150%.

NFT Trademark applications highlight NTFs potential

The report identifies some of the drivers behind the spiking NFT trademark applications. According to the research report:

"The trademark application emerges when the NFT scene is attracting curiosity, excitement, skepticism, and enthusiasm over the potential prospects. The filings point to companies and individuals' greater need to enter the blockchain space to protect their brands, banking on the sector's potential."

With attention focusing on virtual worlds, most brands are hoping that NFT trademarks can be the first step of engaging with consumers on a personalized level.

Although the trademarks highlight the need by brands to get the NFT legal side in order, there are several concerns. For instance, the regulatory compliance with NFT remains unclear and can potentially result in downside risks that might impact the utilization of the technology.