Trademark protection in the digital age : The increasing global challenges

Abstract

In today’s global digital economy, globalization has resulted in the flow of goods, services, and labor across international borders. While this helps businesses to expand their brand globally, it also increases unsound risks.

This article attempts to explain growing challenges that arise with the emergence of social media, e-commerce, artificial intelligence, and digital platforms such as the metaverse. Among these, is the growing issue of new forms of online trademark infringement, which can have a significant impact on businesses. Adopting new reforms is paramount to protect trademarks.

Keywords

Trademark protection, Digital age , IP, Trademark infringement, Trademark enforcement

Introduction

Trademarks were primary tools for safeguarding creative works and innovations, tracking back to ancient civilizations where Indian craftsmen used specific marks on pottery, Romans inscribed swords, and Egyptians stamped bricks.¹ Over time, Trademarks evolved from simple symbols to assist protected by national and international law. Today, The potential expansion of social media and e-commerce platforms, artificial intelligence, virtual markets, and conventional ideas of trademark infringement have all changed in the modern digital global economy, calling for a review of legal frameworks and enforcement strategies.

This article addresses the key global challenges such as social media misuse, online counterfeiting, domain name abuse, cross-border infringement, data privacy violations, artificial intelligence misuse, and the absence of an international framework to provide effective protection.

The objective of this research is to shed light on the global challenges to trademark protection in the digital age by setting the limitations of the current legal framework, analyzing the impact of emerging technology on trademark infringement, and proposing solutions against it. By illuminating global challenges, this study contributes to advancing knowledge in the field of intellectual property law and supports the development of robust frameworks for safeguarding innovations.

Literature Review

Global protection of trademarks in the digital era presents challenges that necessitate an adequate international framework to address emerging issues with the rise of e-commerce, online platforms, and artificial intelligence.

Scholar Merebashills (2024) contends the cross-border enforcement of law becomes hard due to the existence of different national laws which create problems in applicable law and the lack of a unified legal system.²

Al Wahshat (2023) mentioned that international registration can be effectively carried out through the Madrid Protocol³. However, enforcement challenges still exist because not all countries are part of these treaties and differences in national law.

On the other hand, Thurshara Vedashree (2023) highlights contemporary challenges like AI, e-commerce, and the virtual market.⁴

To begin with, the increase of online platforms facilitates not only the sale of counterfeit products but also the unauthorized use of trademarks in usernames, hashtags, and promotions. Trademarks struggle to remove infringing content and it is challenging to identify the liability of infringers particularly when AI or algorithms are involved in spreading trademark violations. Also E-commerce platforms facilitate the sale of counterfeit products.⁵

new forms of brand abuse emerge such as cybersquatting and domain name hijacking. Secondly, AI tools can generate infringing logos, brand names, or marketing content and can manipulate search results to favor infringed products.

Finally, The emergence of Nft and Metaverse introduced new complexity, where Digital assets are used as trademarks without permission raising questions about ownership, and Live streaming uses counterfeiting goods making enforcement challenging because of the dynamic nature of live video.⁶

Methodology

The research analyzes strategies for addressing digital trademark infringement, used by legal experts, organizations, and policymakers to fight the growing threat, including the use of Artificial intelligence, machine learning, and the application of blockchain. Legal databases like WIPO Lex and Westlaw, scholarly publications, articles, and reports from international organizations, as well as research papers, treaties, and court rulings from US jurisdictions, are all cited in this article.

The Data gathered was combined to provide a comprehensive understanding of the issues and identify key trends and solutions presented in this article.

Results

Unauthorized use of a protected trademark that is likely to confuse consumers in the same territory was the focus of trademark infringement cases in the past.

Today, Although the TRIPS agreement and the Madrid protocol provide a foundation for harmonization, enforcement mechanisms, and the rise of online international trade have made it hard to determine the applicable law and where legal action should be taken, especially since there is no unified enforcement system for dealing with online counterfeiting.⁷ Furthermore, online platforms increase authorized use. A clear violation is Cybersquatting, where people register a well-known trademark as a domain name with the intention of eventually selling it for a profit. A case Prince plc v. Prince Sports Group⁸ has ruled that this is unlawful and unfair. In addition, people may create fake brands that mislead consumers, hurt the reputation linked with real trademarks and could lead to financial losses.⁹

Moreover, In order to rank higher in search results and attract more visitors, some websites covertly incorporate trademarks from other businesses into their code. This is considered a misuse of metatags and a violation of trademark law. Also, some use keyword advertising in search engines, causing consumer confusion and unfair competition.

E-commerce further complicates enforcement of the law by selling counterfeit goods.¹⁰

On the other hand, Customers may become confused by the emergence of AI technologies. Online marketplaces like Amazon and Ebay, for example, influence customers’ choices by recommending data such as browsing and purchase history. Another type of AI, known as “bots,” is used in online trading and customer service, where they analyze customer emotions and preferences based on factors like price, location, and style. This can suggest concerns about the implications for trademark law.¹¹

Finally, the market’s structure changed as the digital age moved from centralized to decentralized systems. Users can buy, trade, attend events, and own digital assets in the Metaverse, a virtual environment.

The decentralized nature of the metaverse makes trademark enforcement more complex.  Unauthorized use of trademarks can lead to brand dilution and consumer confusion.¹²

Discussion

Despite the growing challenges, businesses can use various strategies to safeguard their trademark online, including legal actions, technology tools, and proactive brand management. To start with, it’s advisable to register trademarks and file for international trademark protection through the Madrid protocol, which provides businesses with the legal foundation needed to take action against online infringers.

Secondly, collaboration with online platforms can help protect trademarks. For instance, Amazon brand registry allows trademark owners to access tools that help identify counterfeit products. Also, to combat trademark infringement, there are many systems that adopt proactive monitoring strategies such as Google Alerts.¹³

Moreover, AI can combat a trademark by scanning a fake image or logo, like Google Vision AI. For example, IBM Watson can read product names, hagtags, and descriptions to review the unauthorized use of the brand.

On the other hand, Red Points has an AI bot that scans websites and e-commerce platforms to detect suspicious posts. Machine learning can also look for repeat sellers or uploads of fake goods.

Conclusion

In conclusion, protecting trademarks is crucial to the success of business by developing a comprehensive trademark strategy and adopting effective online protection strategies.

The internet has created new types of trademark infringement from cybersquatting and counterfeiting to AI-generated brand abuse and the misuse of metaverse, making it more challenging for businesses to safeguard their intellectual property rights.

However, through a combination of legal strategies, proactive monitoring, and collaboration with online platforms, utilizing AI tools, businesses can protect their trademarks and uphold their businesses’ credibility.

Reference(S):

1. Frank I. Schechter, The Historical Foundations of the Law Relating to Trade-Marks (Columbia Univ. Press 1927).
2. Tamar Merebashvili, Intellectual Property Challenges in the Digital Marketplace: An Analytical Exploration of Trademark Rights in Contemporary E-commerce Jurisprudence, 13 Eximia 503 (2024).
3. Rebecca Thio, Rudi Christiawan & Willy Wagiman, Trademark Law in the Digital Age: Challenges and Solutions for Online Brand Protection, 2 Glob. Int’l J. Innovative Rsch. 710 (2024), https://doi.org/10.59613/global.v2i4.125.
4. Anastasia Pokrovskaya, Protection of Trademark Rights on E-commerce Platforms: An Updated Outlook, 1 J. Compre. Bus. Admin. Rsch. 65 (2024).
5. Michael Edwards, Online Trademark Infringement: Challenges and Solutions, Michael Edwards Solicitors,

https://michaeledwards.uk/online-trademark-infringement-challenges-and-solutions/ .

6. Prince plc v. Prince Sports Group, [1998] FSR 21 (U.K.).
7. C. D. Scott, Trademark Strategy in the Internet Age: Customer Hijacking and the Doctrine of Initial Interest Confusion, 89 J. Retailing 176 (2013),

https://doi.org/10.1016/j.jretai.2012.11.004.

8. Rebecca Tushnet, What’s the Harm of Trademark Infringement?, Geo. U. L. Ctr. (2015), https://scholarship.law.georgetown.edu.
9. Irene Revella, Is Artificial Intelligence Colliding with Trademark Law?, World Intell. Prop. Org.,

https://www.wipo.int/export/sites/www/about-ip/en/artificial_intelligence/call_for_comm ents/pdf/ind_revella.pdf (last visited May 7, 2025).

10. Kyeong-Hee Park, Trademarks in the Metaverse, World Intell. Prop. Org. (Mar. 12, 2022),

https://www.wipo.int/web/wipo-magazine/articles/trademarks-in-the-metaverse-42518.

11. Michael Edwards, Online Trademark Infringement: Challenges and Solutions, Michael Edwards Solicitors,

https://michaeledwards.uk/online-trademark-infringement-challenges-and-s

https://www.wipo.int/export/sites/www/about-ip/en/artificial_intelligence/call_for_comments/pdf/ind_revella .pdf.

¹ Frank I. Schechter, The Historical Foundations of the Law Relating to Trade-Marks (Columbia Univ. Press 1927).

² Tamar Merebashvili, Intellectual Property Challenges in the Digital Marketplace: An Analytical Exploration of Trademark Rights in Contemporary E-commerce Jurisprudence, 13 Eximia 503, 509 (2024), https://doi.org/10.47577/eximia.v13i1.480.

³ Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, adopted at Madrid on June 27, 1989, as amended on October 3, 2006, and November 12, 2007:WIPO Lex – Madrid Protocol

⁴ Rebecca Thio, Rudi Christiawan & Willy Wagiman, Trademark Law in the Digital Age: Challenges and Solutions for Online Brand Protection, 2 Glob. Int’l J. Innovative Rsch. 710, 721 (2024), https://doi.org/10.59613/global.v2i4.125.

⁵ Anastasia Pokrovskaya, Protection of Trademark Rights on E-commerce Platforms: An Updated Outlook, 1 J. Compre. Bus. Admin. Rsch. 65, 73 (2024),

https://doi.org/10.47852/bonviewJCBAR42022153.

⁶ See supra note 4.

⁷Michael Edwards, Online Trademark Infringement: Challenges and Solutions, Michael Edwards Solicitors, https://michaeledwards.uk/online-trademark-infringement-challenges-and-solutions/ (last visited May 7, 2025).

⁸ Prince plc v. Prince Sports Group, [1998] FSR 21 (U.K.).

⁹C. D. Scott, Trademark Strategy in the Internet Age: Customer Hijacking and the Doctrine of Initial Interest Confusion, 89 J. Retailing 176 (2013), https://doi.org/10.1016/j.jretai.2012.11.004.

¹⁰ Tushnet, Rebecca. What’s the Harm of Trademark Infringement?,Georgetown University Law Center. (2015). Available at: https://scholarship.law.georgetown.edu.

¹¹ Revella, I. Is Artificial Intelligence Colliding with Trademark Law? World Intellectual Property Organization, n.d. Web. 7 May 2025.

¹² Park, K. (2022, March 12). Trademarks in the metaverse. World Intellectual Property Organization. Retrieved from https://www.wipo.int/web/wipo-magazine/articles/trademarks-in-the-metaverse-42518¹³ Edwards, M. (s.d.). Online Trademark Infringement: Challenges and Solutions. (8 Mai 2025), https://michaeledwards.uk/online-trademark-infringement-challenges-and-solutions/