Climate change is an escalating global crisis that demands immediate attention. Its repercussions on ecosystems and human life highlight the need for initiatives that promote and support eco-friendliness. With the environment at the forefront of public concern, the corporate world has responded with a surge in green trademarks.
As the world becomes increasingly eco-conscious, businesses are harnessing green trademarks to convey their dedication to mitigating climate change. This paradigm shift reflects not only consumer demand for sustainable products and services but also a broader commitment to corporate social responsibility (CSR) goals. In this context, the proliferation of green trademarks stands as an integral facet of contemporary commerce, reflecting the urgent need to combat climate change through collective action.
The Emergence of Green Trademarks
In an era marked by mounting environmental concerns, green trademarks have emerged as powerful communicators of a company's commitment to sustainability. These trademarks, distinguished by their use of eco-friendly symbols and terms like "eco," "green," or "organic," serve as visual cues for consumers. They signify more than just a brand; they convey an ethos of environmental responsibility.
The fundamental purpose of green trademarks is to distinguish eco-friendly products and services in the market. They go beyond mere branding, acting as beacons of sustainability amidst consumer choices. By employing visually striking elements such as leaves, flowers, or earthy colours, these trademarks visually depict a dedication to safeguarding the environment.
Green trademarks extend beyond marketing tools; they are vehicles of commitment. They indicate that a business is willing to practise environmental responsibility, instead of just being part of the conversation. Whether it's promising reforestation for products sold, reducing carbon footprints, or promoting sustainable practices, these trademarks symbolise an active role in battling climate change.
Global Trends in Green Trademarks
In recent years, there has been a notable surge in companies adopting green trademarks indicating that the business landscape is broadly trending towards sustainability and eco-consciousness.
Statistics from the European Union Intellectual Property Office (EUIPO) demonstrate the remarkable growth in green trademark applications. In 1996, the EUIPO received a modest 1,588 applications for green EU trademarks. Fast forward to 2020, the number has risen up to nearly 16,000 which amounts to 14% of all Trademark Applications filed at the EUIPO[1].
Consumers are pivotal in driving this change. Consumers of today want to invest in values more than merely pay for products or services. They scrutinise labels, seeking reassurance that the goods and services they choose align with their eco-conscious ideals. This shift in consumer behaviour is compelling businesses to adopt green trademarks as a means of conveying their commitment to sustainability.
The global trend of embracing green trademarks highlights just how eco-friendliness has become an important facet of the corporate world. However, this growing trend presents itself with the need for legal frameworks to regulate and ensure the authenticity of these eco-friendly claims.
The Indian Perspective
India, too, has witnessed a significant uptick in the adoption of green trademarks, mirroring global trends. Companies operating in the Indian market are eager to showcase their sustainability initiatives through their branding efforts.
Leading the Way: Indian Companies
Indian brands like Biotique and Mamaearth have embraced green trademarks, making them prime examples of this trend. These trademarks not only represent their eco-conscious approach but also portray to the public that they use the best available ingredients (natural, plant based or manmade) which are both efficacious in usage and certified safe.
Legislation and Sustainability
One critical catalyst for this shift in India is Section 135 of the Companies Act, 2013[2]. This legal mandate applies to companies with an annual turnover exceeding INR 5 hundred crores (approximately USD 60 million), and requires them to allocate 2% of their net profits toward initiatives that support sustainability, the environment, health, education, and other facets of sustainable development.
Section 135 highlights the Indian government's dedication to fostering corporate social responsibility and sustainability. It encourages businesses to invest in sustainability, aligning with global efforts to tackle the pressing issue of climate change and environmental degradation.
This commitment to sustainability, bolstered by the adoption of green trademarks, places India in a prominent role on the global stage as a champion of environmental consciousness and corporate accountability.
Challenges and Controversies
Amid the growing prominence of green trademarks, there is also the presence of a unique set of challenges and controversies. The primary challenge in the domain of green trademarks is the risk of "greenwashing," a term signifying the deceptive practice of making eco-friendly claims that might not withstand scrutiny.
The implications of greenwashing are substantial, undermining consumer trust and diluting the significance of authentic green initiatives. As eco-conscious consumers increasingly demand transparency, companies walk a fine line between genuine sustainability and mere branding.
A key challenge in this arena is the absence of universally accepted definitions and regulations for green products and services. While some jurisdictions have initiated guidelines, a consistent global framework remains elusive. To fortify the credibility of green trademarks and ensure that they genuinely reflect sustainable practices, the formulation of precise and widely recognised standards is imperative. Achieving this balance will be essential as companies strive to demonstrate their commitment to environmental responsibility while avoiding the pitfalls of greenwashing.
Legal Aspects of Green Trademarks
The rise of green trademarks poses intriguing legal challenges. The fundamental consideration lies in whether these marks are eligible for protection. Here, differences in viewpoints emerge between different countries.
In Europe, a stringent approach prevails[3], with a tendency to reject green trademarks if the mark merely combines elements, each of which is descriptive of product or service characteristics[4]. The European Union Intellectual Property Office (EUIPO) maintains a long list of rejected green labels, emphasising descriptiveness.
In contrast, the United States Patent and Trademark Office (USPTO) took an interesting stance when it rejected a trademark application for "Green Seal," even though the company didn't intend to make eco-friendly claims. The Board held that the word "green" could convey to consumers that the products were environmentally friendly, reflecting the U.S. viewpoint on green trademarks[5].
In India, green trademarks often secure registration, particularly when combined with other distinctive words. Courts have recognised that even descriptive terms can gain trademark protection when used in a creative manner, as in the case of "Plant Powered.[6]"
Protecting Green Labels
To safeguard green labels, companies can pursue trademark registration. Creating a distinctive and a unique trademark that is eye-catching with attractive elements such as graphics, taglines, or stylisations, combined with disclaiming exclusive rights over descriptive elements, all contribute to securing trademark registrations. This practice helps protect green labels from being refused based on descriptiveness.
In the evolving trademark landscape, green trademarks occupy a unique space where legal, marketing, and environmental considerations intersect. Securing these trademarks not only contributes to branding but also underscores a company's commitment to sustainability in an increasingly eco-conscious world.
The rise of green trademarks emerges as a powerful ally in fostering sustainability in the face of urgent challenges of climate change. As the global demand for transparency and environmental responsibility continues to grow, the role of green trademarks in building trust and legitimacy cannot be overstated.
However, the journey of green trademarks is not without its obstacles. Nevertheless, this evolving landscape holds immense potential for the future. The path forward calls for stringent standards, genuine commitment, and a collective effort to promote a greener, more sustainable world.
[1] ttps://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/reports/2021_Green_EU_trade_marks/2021_Green_EU_trade_marks_FullR_en.pdf
[2] https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
[3] https://www.wipo.int/wipo_magazine/en/2022/04/article_0006.html
[4] https://guidelines.euipo.europa.eu/binary/1922895/2000140000
[5] https://www.mondaq.com/india/trademark/1327806/validity-of-trademarks-for-green-labels [last accessed on 13-10-2023]