A significant number of UK businesses expanding into the United States are doing so without securing basic protections for their intellectual property, leaving brands and inventions exposed in one of the world’s most litigious commercial environments, according to new research by Allentra USA and Mathys & Squire.
The study highlights a recurring pattern among growth-stage companies either planning US entry or already trading there. It found that 76% of UK firms preparing to expand into the American market had not registered their core trademarks or brand names with the United States Patent and Trademark Office (USPTO). Among companies already operating in the US, the figure rose slightly to 78%.
Researchers say the oversight is not limited to isolated cases. One business in the sample had already become involved in a trademark dispute with a US company using a similar name, a situation experts say could have been avoided through early clearance searches and timely registration at relatively low cost compared with legal proceedings.
Rebecca Tew, trademark attorney at Mathys & Squire, warned that many companies underestimate the risks of entering the US market without formal protection in place. She noted that failing to secure intellectual property rights can jeopardise broader investment strategies, particularly in a market where enforcement costs are high and disputes are common.
The research also identified a widespread misconception among UK firms that domestic IP protections extend automatically to the US. In reality, intellectual property rights are territorial, requiring separate filings in each jurisdiction. For patents, applications must generally be filed within strict deadlines following disclosure, or protection may be lost entirely.
Trademarks present an additional challenge. Unlike the UK’s “first to file” system, the US operates on a “first to use” principle, meaning businesses can lose rights to their own brand name if another party has already used it in the American market.
Ian Collins, founder of Allentra USA, said companies that succeed in the US are not necessarily those with the largest budgets, but those that plan early and address legal risks before expansion begins. He described the US as the single largest commercial opportunity for many UK firms, but also one governed by significantly different rules.
The financial consequences of getting it wrong can be substantial. Trademark disputes before the USPTO can cost tens of thousands of pounds, while full litigation can escalate far higher. Even negotiated settlements, though cheaper, often arise only after a conflict has already begun.
The study also highlighted additional issues, including misconceptions about software patentability, overlooked licensing requirements between UK and US entities, and delays in filing that leave businesses unprotected during critical early growth phases.
With trademark approvals often taking up to a year, researchers warn that delaying registration until after market entry can leave companies exposed during their most important branding period.
