Set up a company in the UK and Trademark registration post Brexit

The UK is the only country to have left the EU, after 47 years of membership. Brexit (British exit) has opened up a new age for the country’s international trade and changed other legal aspects such as trademarks.

After Brexit, the UK can now sign trade deals independently and flexibly with any country. This is a good opportunity for new commerce companies in the market. EU trademarks will also split into UK trademarks and EU trademarks from now on, making everything very complex. One IBC^® will explore these two topics to help customers better understand Brexit’s effects and what should be done in this case.

Opportunities in trading with EU and the world post Brexit

The EU accepts shared rules and regulations and same taxes on foreign products so that goods, services and capital can move freely within its territory. Without this benefit, commerce was affected the most, facing extra health measures, paperwork, unexpected costs, taxes and even straight out bans. An example of this is pork exporters were required to pay extra fee yet still got held up by customs. The car industry will face disruption in supply chains. London financial firms, although managed to regain some access to the EU, lost blanket access to EU markets. Approximately 25% of SMEs had temporarily halted sales with the EU, according to the Federation of Small Businesses.

This is a good opportunity for new commerce companies in the UK and the EU. Companies can analyze these problems and explore different innovative solutions to breach the trade barrier with the EU. There is also less competition in this field due to Brexit.

Southampton port in the UK is always active

The Financial Times said that the UK needs to work on approximately 759 international agreements, spanning 168 non-EU countries. As of January 2021, the UK had signed continuity agreements with over 60 countries that have agreements with the EU. For those countries not covered by continuity agreements, trade is now governed by WTO’s terms. Additionally, the UK is also seeking new trade agreements with Australia, New Zealand and the US and is updating and improving existing arrangements with Mexico, Norway, Iceland, Canada and Turkey.

Britain has also expressed its desire to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with strong support from Viet Nam. Vietnam and the U.K. have signed the UKVFTA, eliminating 99% of tariffs. Export wide, Vietnam will enjoy $151 million savings in tariff and the U.K. will save $51 million.

International trading businesses will have many new chances due to future trade agreements. One IBC^® recommends following any negotiation closely to determine opportunity and risk and act accordingly.

Important new aspects of UK trademarks registration post Brexit

EU trademarks in effect before 2021 will automatically split into EU and UK trademarks with no change in descriptions, identifications of goods and services, and dates of use. Old Certificates of Registration are still eligible in the UK. If owners want to, they can also opt-out of this automatic process. There is no extra fee for this process and the renewal date will not change from the EU registration but the renewal fees will be adjusted by the UKIPO from now on.

For pending applications, owners must submit UK trademark applications separately. The deadline is September 30, 2021 with normal fees applied. All other fees, application, and maintenance requirements will be based on requirements of the UKIPO. If submission is before the deadline, filing dates and priority dates will remain the same. If no action was done by the deadline, the owners have to apply again with the UKIPO.

Brexit has cause new troubles for trademark holders in Europe

From 2021, UK trademark holders have to provide a UK address (or Gibraltar or the Channel Islands), either by using a separate UK mailing address or by designating a UK law firm to help with the application or registration. The EUIPO may request EU rights holders to designate a representative within the EU if the need arises.

In addition, Brexit can also have effects on territory clauses, trademark designations causing potential breach of existing agreements. In e-commerce, UK corporations may not register or own an .eu domain name. Any .eu domain not transferred to an EU person or entity will be withdrawn, and all withdrawn domains will be revoked and released in 2022.