IP and competition in consumer goods markets
Economic research suggests that, as markets become more contested, firms may adjust how they compete. This includes by placing greater emphasis on non-price dimensions of value.1 Particularly in mature product markets, where firms have converged on functional performance, they may shift their inventive effort toward design-based changes – such as aesthetics, ergonomics and user experience.
Recent growth in US design filings has coincided with rapid expansion of Chinese trade mark activity in the same product categories. This co-movement is consistent with increased contestation in these markets and with firms placing greater emphasis on design-based differentiation in consumer goods.
A comparison of design and trade mark filing growth between 2022 and 2025 highlights a clear pattern across several consumer goods classes. At the same time that US firms have increased design filings sharply in these areas, Chinese firms have recorded rapid growth in trade mark filings, potentially reflecting increased commercial activity (Figure 4.5).
Figure 4.6
Rising trade mark activity from China coincides with increased US design filings across several consumer goods classes
These consumer goods classes are not traditionally associated with US strength in Australian design filings. Nevertheless, they have seen record US filing volumes in recent years, with filing patterns changing relative to earlier declines. The growth concentrated in these classes has contributed to a recent increase in US-origin filings to record levels.
Meanwhile Chinese product and brand proliferation in consumer goods has accelerated since 2022. Enabled in part by industrial policy supporting the expansion of cross border e-commerce (see Chapter 3) this trend has coincided with strong growth in Chinese-origin trade mark filings.
These patterns suggest that while Chinese manufacturers have focused on brand expansion and market presence, US firms have increasingly used design filings to protect product appearance and other forms of visible differentiation.
While more analysis is needed to identify the underlying drivers, these patterns suggest a hypothesis: that the increase in design filings may be underscored by changing competitive and trade dynamics within consumer goods markets.
Australian filings abroad: outward design activity reaches a new high
In 2024, Australian applicants filed 2,487 design applications abroad (+7.8%), the highest level on record, based on the latest available data from WIPO.
The leading destination markets for Australian design filings are the United States, New Zealand, China, United Kingdom, and the European Union Intellectual Property Office (EUIPO), as shown in Figure 4.6.
Australian filings grew in all 5 lead destinations, with the strongest growth (+35.8%) in New Zealand.
Following Brexit, from 1 January 2021, applicants have been required to register designs directly with the United Kingdom Intellectual Property Office (UKIPO), rather than with the EUIPO, to obtain protection in the UK.2 This change led to an initial surge in Australian design filings at the UKIPO in 2021. Australian UK filings have exceeded their 2021 total in 2025.
Figure 4.6
Leading overseas destinations for design applications by Australians, 2015 to 2023
Source: WIPO
Endnotes
- J Hombert and A Matray, ‘Can innovation help US manufacturing firms escape import competition from China?’, The Journal of Finance, 2018 73(5), pp.2003-2039.
- United Kingdom Intellectual Property Office, Changes to EU and international designs and trade mark protection, gov.uk website, 3 December 2020, accessed 14 April 2026.