The Secret World of Trademark Trolling: How Some People Make Money Filing Trademarks
Trademark trolling is a growing concern in intellectual property law, where individuals or entities register trademarks not for genuine business use but to exploit legal loopholes for financial gain. These trademark trolls often target businesses by filing trademarks for commonly used words, phrases, or logos and then demanding settlements, filing lawsuits, or selling the trademarks at inflated prices. This practice creates financial and legal burdens, especially for small businesses. While governments and trademark offices are introducing stricter regulations to curb bad-faith filings, the persistence of loopholes keeps trademark trolling a contentious issue. This paper explores the mechanisms, impact, and possible solutions to trademark trolling.
INTRODUCTION
Trademark trolling is the practice of registering trademarks not for legitimate business use but to profit by threatening businesses with legal action. Trolls file trademarks for popular phrases, names, or logos, then demand settlements, file lawsuits, or sell the trademarks at inflated prices. This exploitative tactic often targets small businesses that can’t afford legal battles. While governments are cracking down on bad-faith filings, loopholes still exist, making trademark trolling a controversial issue in intellectual property law.
What Is Trademark Trolling?
Trademark trolling is when someone registers a trademark with the intent of enforcing it against others—often to demand payment rather than to use it for genuine commerce. Unlike traditional businesses that file trademarks to protect their brands, trademark trolls strategically file for marks they suspect others might want in the future.
These trolls often don’t produce or sell anything related to the trademarks they register. Instead, they wait for a business to use the name or logo and then either:
- Demand a settlement (often cheaper than fighting in court)
- File a lawsuit for infringement
- Offer to sell the trademark at an inflated price
How Trademark Trolling Works
- Bulk Filings: Trademark trolls search for commonly used or trending words and phrases and register them before legitimate businesses can. This is especially common with pop culture references, viral trends, and generic business names.
- Cease-and-Desist Letters: Once a company starts using a mark similar to what the troll registered, they send a legal notice threatening to sue unless the business stops using the name or pays a hefty fee.
- Lawsuits and Settlements: Many businesses, especially small ones, don’t have the resources to fight back, so they settle. Some companies even buy the trademark from the troll at an inflated price.
- Flipping Trademarks: Some trolls invest in trademarks like real estate—registering names they believe will be valuable and selling them to businesses that need them later.
To know more about this you can follow the link below:
Famous Trademark Trolling Cases
- Monster Energy vs. Everyone: Monster Energy is infamous for aggressively going after businesses that use the word “Monster” or even similar-looking logos, regardless of industry.
- Candy Crush Controversy: King, the maker of Candy Crush, tried to trademark the words “Candy” and “Saga,” leading to widespread backlash.
The Gray Area: Opportunists vs. Predators
Not all trademark trolls are purely malicious. Some people genuinely anticipate future demand and register marks as an investment strategy—like domain name squatting. Others, however, abuse the system to target businesses unfairly.
How Businesses Can Protect Themselves
- File Early: If you have a unique brand name, file a trademark as soon as possible to avoid issues later.
- Conduct Trademark Searches: Before launching a product, check the CGPDTM (or your country’s trademark office) database to ensure the name isn’t already taken.
- Defend Your Brand: If you receive a cease-and-desist letter, consult a trademark attorney before panicking or paying up.
- Challenge Bad-Faith Trademarks: Many countries allow you to dispute a trademark if it was filed in bad faith or never used in commerce.
The Future of Trademark Trolling
Governments are taking stricter measures to combat trademark abuse. The CGPDTM (Controller General of Patents, Designs, and Trademarks) in India has implemented tighter regulations to ensure that trademarks are filed with genuine business intent and supported by actual use. Efforts are being made to prevent bad-faith registrations and fraudulent claims. However, as long as legal loopholes persist, some entities will continue to exploit the system for financial gain.
Conclusion
Trademark trolling exploits legal loopholes in intellectual property law, allowing individuals and entities to profit by filing trademarks without genuine business intent. This practice burdens businesses, particularly small ones, by forcing them into costly legal disputes or settlements. While governments and trademark offices are tightening regulations to curb bad-faith filings, challenges remain. Businesses can protect themselves by filing trademarks early, conducting thorough searches, and challenging fraudulent claims. Addressing trademark trolling requires continued legal reforms and increased awareness to ensure trademarks serve their true purpose—protecting brands rather than being used as tools for exploitation.
