• Scammers are increasingly hijacking attorney credentials and filing fraudulent trademark applications.

• The PTO is ramping up audits and implementing new rules, but safeguards remain insufficient.

• Legal professionals are spreading awareness to protect their practices and clients.

The U.S. Patent and Trademark Office (PTO) is grappling with a surge in impersonation scams targeting trademark attorneys and applicants, a problem exacerbated by attempts to tighten rules for foreign applicants, according to a Bloomberg Law report.

• In March, the Government Accountability Office (GAO) reported that more than one-third of the 2.8 million trademark applications received by the PTO might be false or inaccurate. This increase is linked to fraudulent activities such as fake applications, hijacked credentials, and social engineering tactics.

• According to PTO Commissioner for Trademarks David Gooder, scammers have exploited the credentials of at least 30 attorneys to file fraudulent submissions. 

• Attorneys are now being urged to monitor their credentials and search the trademark register regularly to identify potential misuse.

The PTO’s efforts to combat fraud include stricter rules for foreign applicants. Since 2019, foreign applicants have been required to hire U.S.-licensed attorneys. While this rule aims to curb fake applications, scammers have adapted by stealing or “renting” credentials from inexperienced or unethical attorneys.

New Safeguards, Persistent Loopholes

This year, the PTO introduced ID verification requirements for attorney support staff to access trademark filing systems. However, scammers have bypassed these measures by socially engineering applicants into sharing credentials, often without understanding the legal risks.

“It’s like putting a lock on the door and then forgetting to lock it,” said Rachael Dickson, a senior trademark attorney at Lloyd & Mousilli. Safeguards remain insufficient to fully address the issue, she noted.

• The PTO has ramped up efforts to curb scams, including more frequent audits and plans to develop advanced IT tools. 

• These tools aim to quickly gather evidence and suspend fraudulent accounts. 

• However, the agency’s ability to prosecute scammers is limited because it lacks consumer protection authority.

The Role of the Legal Community

Attorneys like Dickson and Ana Vinueza, who had her credentials fraudulently used, are stepping up to raise awareness. They’ve turned to platforms like LinkedIn and webinars to educate others on how to safeguard their accounts.

Dickson advises attorneys to search the trademark register for unauthorized use of their credentials and to stay vigilant. She recently hosted a webinar highlighting practical steps to combat scams.

What’s Next?

Meanwhile, the PTO continues to collaborate with bar associations, the Federal Trade Commission, and law enforcement to address these issues. 

Gooder said the agency is working on better IT tools to enhance fraud detection and enforcement. 

For now, the onus remains on attorneys to stay informed, monitor their credentials, and educate their peers about the growing risks in the trademark filing process.