On the Price Elasticity of Demand for Trademarks

Trademark protection is a policy instrument situated at the core of firm marketing and innovation strategy. One underexplored factor directly affecting firms' use of trademarks relates to the fees associated with obtaining a mark. This paper provides econometric estimates of the fee elasticity of demand for trademarks using a panel of monthly international trademark applications. Estimates range from -0.29 to -0.44, which is remarkably similar to the fee elasticity of patent filings. The paper discusses implications for trademark policy, the use of trademarks as an innovation indicator and the economic returns from trademark protection