Businesses doing too little too late to protect brands

The survey, of 222 businesses, reveals that 84 per cent of executives believe brands are more important in a downturn than in favourable economic circumstances.

The research shows that businesses are taking an increasingly focused approach to their business strategy. 97 per cent intend to channel marketing efforts on core products and services in the recession. Meanwhile, 62 per cent intend to use their existing brand as the means to diversify into sister offerings.

Correspondingly, over three-quarters (77 per cent) anticipate that companies will become more aggressive in protecting their brands in this environment - with an even greater number (86 per cent) suggesting that their own businesses are more inclined than previously to defend existing products and services. This is supported by the most recent statistics on the number of oppositions made to trade mark applications at the European level, which show a 12 per cent increase in 2008, from 16,486 to 18,481.

Despite this increased aggression, the research finds that many businesses are still not acting at an early enough stage to prevent threats to their brands emerging. Only a fifth of senior management are taking a more active role in brand protection in the downturn than previously, with the remainder either "too busy" or getting involved only after a direct competitive or counterfeiting threat has emerged.

This is in spite of the fact that 95 per cent believe consumer demand for counterfeit goods will rise in the current market, and be met with a willing supply. Meanwhile, 89 per cent believe the rise of outsourcing will leave companies more open to potential abuses of their brands than in previous downturns. 80 per cent blame intellectual property systems in emerging markets for failing to develop sufficiently for businesses to have confidence in their handling of counterfeiters. Key findings include

• 84 per cent of executives claim a strong brand is more important in an economic downturn than in favourable economic circumstances
• 86 per cent say they are more inclined to defend existing products and services from competitive threats than prior to the recession
• Yet only 20 per cent say that management is devoting more time than before to brand protection, while corresponding budgets are coming under fire
• Luxury, green, and ethical brands are expected to decline, with doubt cast on the ability to turn around "distressed" brands

The survey reveals that the reality of business’s ability to protect their brands prior to litigation is worsening. 82 per cent of those surveyed predict that "economic reality" will inevitably result in cuts to budgets that relate to brands, while almost half (46 per cent) already spend less than one per cent of that budget on obtaining brand protection and monitoring.

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