Majority of UK Companies Expanding to US Lack Essential Trademark Protections, Study Shows

New research conducted by management consultancy Allentra USA and intellectual property law firm Mathys & Squire has uncovered a consistent pattern of intellectual property (IP) exposure among growth-stage UK companies planning to enter or already trading in the United States.

The study found that 76% of UK businesses in the process of expanding into the US had not registered their core brand names or product marks with the United States Patent and Trademark Office (USPTO). Among those already operating in the US, the figure was even higher at 78%.

One company within the research cohort experienced firsthand the consequences of inadequate trademark protection, becoming embroiled in a dispute with a US entity using a similar name. Mathys & Squire highlighted that such conflicts could have been avoided by conducting availability searches and filing trademark applications with the USPTO prior to market launch—a process that incurs minimal costs compared to the expense of US legal disputes.

Rebecca Tew, trademark attorney at Mathys & Squire, stated, “It is a concern that UK companies investing in building their brand in the US have not implemented basic IP protection nor assessed their freedom to operate. This is an important step before any business expansion, particularly in the US, which is known to be litigious and where defending an action can be costly. Failing to protect your IP properly could jeopardise your entire investment in a new market.”

Ian Collins, founder of Allentra USA, which advises businesses on US market entry, added, “For most ambitious UK companies, the US represents the single largest commercial opportunity available. However, it also operates by entirely different rules from the UK and Europe. In ten years of working with over 3,500 companies on international expansion, the pattern is consistent. The companies that avoid expensive mistakes are not necessarily those with the biggest budgets, but those that asked the right questions early enough to act on the answers.”

A common misconception identified by the research is the assumption that UK patent and trademark registrations provide meaningful protection in the US. In reality, IP rights are territorial. Official government guidance clarifies that separate US patent filings must be made within limited timeframes to secure protection in the United States.

Trademark protection in the US is further complicated by its “first to use” system, contrasting with the “first to file” principle familiar to UK businesses. This means a company can build a brand extensively in the UK only to find that another party holds prior rights to the same name in the US through earlier use.

The commercial consequences of such conflicts can be severe. USPTO trademark opposition or cancellation proceedings typically cost between £15,000 and £40,000 in legal fees, with full litigation expenses significantly higher. More cost-effective solutions, such as negotiated coexistence agreements or adopting differentiated US brand identities, are viable only if risks are identified before conflicts arise.