Newsletter
A trademark check to prevent trademark infringement is essential before the distribution of souvenirs in shareholders' meetings
I. Introduction: Intellectual property awareness regarding the distribution of souvenirs in shareholders' meetings
Every year from May to July, listed and OTC ("over-the-counter") companies organize shareholders' meetings, and attending investors eagerly anticipate the distribution of souvenirs, which grow ever more creative year after year. As this year's peak season for shareholders' meetings approaches, various listed and OTC companies have one by one announced their choice of souvenirs, which range from co-branded products, convenience store gift cards, support towels, eco-friendly tableware, cleaning supplies, health supplements, to 3C peripheral products (namely products in the fields of computers, communications, and consumer electronics). The wide variety of souvenirs captures the attention of investors, some of whom are prompted to purchase stocks on the last buying day before the shareholders' meeting in order to obtain these unique souvenirs. Each year, the souvenirs offered for various shareholders' meetings tend to become a major topic of media coverage and public discussion. These companies have found that they can use this opportunity to draw consumer attention to their directly operated, invested, or soon-to-be-listed products, making it an alternative annual marketing strategy.
II. An essential checklist before distributing the souvenirs for shareholders' meetings
While a shareholders' meeting may be a joyous occasion, companies often find themselves in the news due to allegations that their souvenir offerings infringe another person's trademark rights. Given the wide variety of souvenirs, they can be a company's regular product used as a souvenir, a product developed on a short-term basis specifically for the shareholders' meeting, or a co-branded product distributed as a souvenir. If the appearance or packaging of these souvenirs bears the company's own trademark, corporate employees working under time pressure on the short-term project of producing these souvenirs for the shareholders' meeting may inadvertently overlook the protection of intellectual property rights. To avoid concerns of trademark infringement, the following checklist should be reviewed before producing souvenirs:
(i) Conducting a trademark search to assess the risk of infringement
Whether it is self-developed and short-term souvenirs or co-branded products made in collaboration with others, it may be that their sole purpose is to be distributed as souvenirs for the shareholders' meeting, meaning they have a shorter product life cycle. Even so, a trademark search should still be conducted for the trademarks marked on the souvenirs in connection with the corresponding product categories before production. Conducting this search before production is to ensure that the use of trademarks on such products with a short life cycle does not raise concerns of trademark infringement, i.e. ensure that the trademarks are not similar to prior-registered trademarks of others.
For the following common souvenirs for shareholders' meetings, it is advised that a corresponding trademark search be conducted: "wallets; school bags; handbags; suitcases" in Class 18 for backpacks and handbags; "kitchen knives; forks; spoons; peelers" in Class 8 and "kitchen utensils and tableware" in Class 21 for eco-friendly tableware; "household and cleaning utensils" in Class 21 for cleaning products; "food insulation containers; beverage insulation containers" in Class 21 for insulated cups; and "towels; bath towels; handkerchiefs" in Class 24 for towels.
(ii) Trademark application and early strategic planning
Developing souvenirs can serve multiple purposes. In addition to distribution to shareholders, souvenirs sometimes also become regular products for the company's diversified business operations in the future. Conducting a trademark search before production allows one to assess in advance the possibility of trademark infringement, and if the search results indicate a relatively low risk of infringement, a trademark registration application should be filed for the product before going public with the souvenir items and their appearance. This is to prevent others from engaging in trademark squatting after the trademark and the product are made public, as such illicit acts could create obstacles to obtaining registration later and the burden of being accused of infringement.
III. Conclusion
Souvenirs for shareholders' meeting are only distributed from May to July each year. While they can create a topic of interest, it would be prudent for listed and OTC companies to be cautious about potential trademark infringement risks. Violating the Trademark Act incurs not only civil but criminal liability, and more importantly, a company involved in infringement and illegality would suffer damage to its goodwill—the damage may be incalculable and may even affect stock prices sometimes. Therefore, before developing and producing souvenirs, it would be advisable to consult professional trademark agents and lawyers on how to conduct the aforementioned trademark search and strategize your application filings regarding the trademark representations on the products. With professional assistance, you will obtain the most efficient search and planning advice, ensuring the most comprehensive preparation for the annual distribution of souvenirs for your shareholders' meeting.