AI Applications and Bad-Faith Trademark Filings: What the DPMA Increase Means for Brand Owners

The German Patent and Trade Mark Office (DPMA) is recording a noticeable rise in bad-faith trademark applications—and the use of AI applications is playing an increasingly central role. What used to be the manual free-riding of individual applicants is now scaling, through automated tools, into a structural problem for brand owners. In this article, I put the development into context and show how you can protect your trademarks effectively.

What Does “Bad Faith” Mean in Trademark Law?

A trademark application is considered to be filed in bad faith when it does not serve the actual purpose of a trademark—namely, identifying one’s own goods or services—but instead pursues improper objectives. The legal basis can be found in Section 8(2) No. 14 of the German Trade Mark Act (MarkenG) and, at the EU level, in Art. 59(1)(b) EUTMR.

Typical categories include:

• Speculative marks, filed solely to be resold later at a high price.
• Blocking marks, intended to deliberately prevent competitors from entering the market.
• Ambush marks, used to intercept third-party signs that have not yet been registered.

How AI Applications Aggravate the Problem

The increase observed by the DPMA is closely linked to the availability of generative and automated tools. AI dramatically lowers the barriers to mass filings.

• Automated research identifies unprotected brand names, startup designations, or viral terms within seconds.
• Generative AI produces lists of goods and services as well as application texts in any quantity.
• Bots monitor commercial registers, domain registrations, and social media trends to systematically exploit filing gaps.

The result is a new dimension: bad-faith filings no longer occur in isolation but in waves—faster than affected companies can react.

A Practical Example

A young cosmetics company announces a new product line under a catchy name on Instagram without registering the trademark beforehand. An AI-powered monitoring tool detects the trend, and within 48 hours a third party files the name with the DPMA. The company later faces a cease-and-desist letter or a purchase offer worth several thousand euros—a classic case of bad faith that could have been avoided through early filing.

Recommendations for Brand Owners

• File early, ideally before any public communication of the brand.
• Set up trademark monitoring to detect conflicting filings in good time.
• In cases of bad-faith filings, consider opposition or a cancellation request on grounds of bad faith.
• Secure documentation of your own priority (first use, drafts, internal notes), as the burden of proof for bad faith lies with the applicant.

Conclusion

The DPMA’s rise in bad-faith trademark filings is a wake-up call: AI is changing not only research but also the threat landscape in trademark law. Those who proactively file and monitor their trademarks deprive AI-driven free-riders of their foundation. A well-considered filing strategy is no longer a luxury today but a necessary line of defense.