In recent years, incidents of trademark squatting by “rogue” entities have surged. Numerous sellers have reported being targeted by unscrupulous companies that maliciously register their trademarks, then file counter-complaints accusing the original owners of infringement. These entities even extort exorbitant “transfer fees” from the sellers.

One “victimized” seller sought help on a forum: Their UK trademark was squatted on in Germany, and they were then accused of infringement by the squatter's German trademark. This forced the removal of their store listings, with the squatter brazenly demanding a whopping ¥200,000 transfer fee! Worse still, the seller discovered the squatter had registered numerous other trademarks, suggesting multiple “victims” share this plight.

Trademark squatting is a global phenomenon. Sellers face unscrupulous companies maliciously registering their trademarks, then turning the tables by filing infringement complaints—even blackmailing sellers into paying exorbitant “transfer fees.” Cases like this—where sellers have their German trademarks squatted, face infringement complaints, and are extorted for huge transfer fees—are not recent occurrences. The more thriving an industry or product becomes, the more diverse individuals flood into it, making it a prime target for unscrupulous operators.

Why does malicious trademark squatting frequently occur in Germany?

1. First-to-File Principle

Unlike the U.S. “first-to-use” system, Germany follows the “first-to-file” principle. Applicants can obtain registration without providing proof of trademark use. Legal protection is granted solely based on being the first to complete registration, regardless of actual usage.

2. Lenient Examination

The examination process primarily focuses on formal review, checking the completeness of application materials. Criteria for assessing trademark similarity are relatively broad. More critically, the German Patent and Trademark Office (DPMA) does not verify the applicant's genuine intent to use the mark, making it easier for squatters to secure registrations.

3. Unique Registration Process

The “registration first, publication later” model is employed. After passing the formal examination, the DPMA issues the registration certificate immediately, followed by a three-month opposition period. This “authorization before publication” mechanism significantly narrows the window for rights enforcement, posing challenges for legitimate rights holders.

4. Low Cost and Low Risk

Germany's trademark system objectively lowers the barrier for squatting, with relatively low costs and risks attracting malicious squatters. In contrast, the enforcement process typically takes 1-2 years and incurs substantial expenses. This low-cost, high-return characteristic makes Germany an ideal target for trademark squatters.

Countermeasures Against Squatting

✅ Register Before Market Entry

Before product launch, establish a trademark protection strategy to minimize the risk of squatting. Registering proprietary brands also enhances corporate image.

✅ Monitor Trademarks

For core trademarks, engage professional agencies for periodic monitoring. Promptly address squatted trademarks to avoid protracted legal battles.

✅ Proactively Appeal

When encountering malicious squatting or extortion attempts, sellers should first preserve screenshots of extortion communications, evidence of their trademark's use in Germany, and other relevant documentation. Submit this material to Amazon for appeal, clearly outlining the perpetrator's illegal extortion activities.

✅ Trademark Opposition or Invalidation

Beyond active appeals, consider consulting legal counsel to file opposition or invalidation proceedings against squatted trademarks. This legal approach safeguards the company's legitimate rights and interests.