USPTO Combating Trademark Fraud

The USPTO has indeed implemented a multi-faceted approach to seriously reduce trademark fraud, particularly in response to a surge in fraudulent applications, misleading solicitations, and improper filings. Their efforts target various forms of fraud, from scammers trying to trick applicants into paying erroneous fees to those attempting to improperly register marks.

Here are some of the key measures and initiatives the USPTO has adopted:

1. Attorney Requirement for Foreign-Domiciled Applicants (TEAS Plus/Mandatory U.S. Attorney Rule):

• What it is: Since August 2019, all foreign-domiciled trademark applicants, registrants, or parties to a proceeding must be represented by an attorney who is licensed to practice law in the United States.

• Why it helps: This is a cornerstone of their anti-fraud efforts. It ensures that filings from outside the U.S. are vetted by professionals familiar with American trademark law, significantly reducing the submission of false information (e.g., fake specimens, false claims of use) and curbing the activities of unauthorized foreign filing firms.

2. Trademark Modernization Act (TMA) Procedures (Expungement and Reexamination):

• What they are: Enacted in late 2020 and fully implemented in December 2021, the TMA introduced two new administrative procedures:

  • Expungement: Allows anyone (including the USPTO itself) to petition to cancel a trademark registration if the mark has never been used in commerce for the goods/services listed in the registration. This can be requested between 3 and 10 years after the registration date.

  • Reexamination: Allows anyone (including the USPTO itself) to petition to cancel a trademark registration if the mark was not in use in commerce on or before a particular relevant date (e.g., the filing date of the application or the date a Statement of Use was filed). This can be requested within five years of the registration date.

• Why they help: These procedures provide powerful tools to clear the trademark register of "deadwood" marks that were falsely claimed to be in use, thereby reducing clutter and making it easier for legitimate businesses to register and protect their marks. The USPTO itself can initiate these proceedings.

3. Enhanced Scrutiny of Applications and Specimens:

• Increased Examinations: Trademark examining attorneys are more rigorously scrutinizing applications for suspicious patterns, inconsistencies, and potentially fraudulent specimens (proof of use of the mark in commerce).

• Random Audits: The USPTO conducts random audits of registrations, requesting additional evidence of use from trademark owners. If satisfactory proof is not provided, the associated goods and services (or the entire registration) can be removed.

• AI-Driven Fraud Detection: The USPTO is adopting advanced AI-driven technology and machine learning algorithms to analyze trademark applications. These tools help identify suspicious patterns, repeated filings from known fraudulent entities, inconsistencies in submitted specimens, and irregularities in ownership claims, flagging high-risk applications for further review.

4. Administrative Sanctions and Disciplinary Actions:

• Issuing Sanctions: The USPTO has been increasingly aggressive in issuing administrative sanctions against individuals or firms found to be engaging in fraudulent or improper conduct. These sanctions can include striking fraudulent documents, permanently precluding individuals from submitting further filings, and deactivating USPTO accounts.

• Office of Enrollment and Discipline (OED): The OED investigates allegations of misconduct by trademark attorneys and patent agents, including unauthorized practice of law and violations of USPTO rules, leading to disciplinary actions. The USPTO recently announced sanctions against a foreign filing firm (Stelcore Management Services, LLC on June 13, 2025) for improperly entering signatures and providing false information.

5. Public Awareness and Education Campaigns:

• Scam Alerts: The USPTO actively publishes alerts and warnings on its website about common trademark scams (e.g., misleading solicitations for payment, "spoofing" phone calls/emails impersonating the USPTO).

• Educational Resources: They provide videos, webinars, and detailed webpages guiding applicants on how to identify and avoid scams, and what to do if they believe they've been targeted.

• Collaboration with Law Enforcement: The USPTO works with federal agencies like the Department of Justice (DOJ), the Federal Trade Commission (FTC), and the FBI to investigate and prosecute fraudulent activities, even though the USPTO itself lacks direct law enforcement powers.

6. Internal Process Improvements and Data Analytics:

• Fraud Risk Assessments: The USPTO has been recommended by the Government Accountability Office (GAO) to conduct regular, comprehensive fraud risk assessments of the trademark register to identify inherent risks and design more effective controls.

• Data System Improvements: The GAO has also recommended improving data systems to enable stronger trademark data analytics, which can help in identifying and mitigating fraud more effectively. The USPTO has concurred with these recommendations.

• Patent Fraud Detection and Mitigation Working Group: While primarily focused on patents, the USPTO has established a working group to proactively detect and mitigate threats to the integrity of the IP system as a whole, which can inform trademark efforts.

By combining stricter rules, new legal procedures, advanced technology, public education, and enforcement actions, the USPTO is working diligently to enhance the integrity of the U.S. trademark register and protect legitimate brand owners from fraudulent activities