The Impact of the Madrid System and the Community Trademark on Trademark Protection in Europe

Malwina Mejer (European Commission) & Benedikt Herz, “The Impact of the Madrid System and the Community Trademark on Trademark Protection in Europe”

Trademark protection in Europe underwent important institutional changes since the 1990s. We document these changes and analyze their impact on filing behavior using a newly constructed dataset that combines data on trademark filings at national offices, CTM filings, and designations over Madrid System and the respective filings fees. Using panel-data econometrics, we find that the introduction of the CTM on average reduced national filings them by about 19%. We document that smaller countries were much stronger affected than bigger countries. We also show a substantial difference by foreign and domestic companies with the former substituting direct national filings to Madrid System and CTM. Finally, we document that the CTM led to substantial cost savings for applicants.