Embeth is a senior lawyer at Sprintlaw. Having previously practised at a commercial litigation firm, Embeth has a deep understanding of commercial law and how to identify the legal needs of businesses.
What Are Your Options After Receiving An Adverse Report?
- Option 1: Respond With Submissions (Argue Your Case)
- Option 2: Amend The Application (Narrow Or Adjust What You’re Claiming)
- Option 3: Provide Evidence (If The Objection Is About Distinctiveness)
- Option 4: Seek Consent From The Owner Of The Earlier Mark
- Option 5: Request A Hearing (If You Want A Formal Decision)
- Option 6: Withdraw And Refile (Or Rebrand)
- Key Takeaways
Putting time (and money) into your brand is exciting - until you receive a message from the Intellectual Property Office of New Zealand (IPONZ) saying your trade mark application has an “adverse report”.
If that’s happened to you, don’t panic. An adverse report is common, and it doesn’t automatically mean your trade mark is rejected forever. It usually means the IPONZ examiner has identified issues that need to be addressed before your application can move forward.
This guide is updated to reflect current, practical approaches businesses are taking to manage IPONZ objections, especially with the way online branding and trade mark conflicts show up quickly in searches.
Let’s walk through what an adverse report is, why you might have received one, and the realistic options you have from here.
What Is An IPONZ Trade Mark Adverse Report (And What Does It Mean For Your Application)?
An adverse report is a written notice from an IPONZ examiner outlining concerns with your trade mark application. It’s essentially IPONZ saying: “We’ve reviewed your application, and we can’t accept it in its current form - here’s why.”
Most of the time, you’re given a deadline to respond. If you don’t respond in time, your application can lapse (which can mean losing your filing date and needing to start again).
Is An Adverse Report The Same As A Rejection?
Not quite. It’s more like a “please fix these issues” step. Some adverse reports are straightforward to resolve (for example, clarifying a description or narrowing goods/services). Others are harder - particularly where IPONZ says your mark is too similar to an earlier mark.
Why Does IPONZ Issue Adverse Reports?
IPONZ is responsible for examining trade mark applications under the Trade Marks Act 2002. The examiner’s job is to check whether your trade mark meets legal requirements and whether it conflicts with earlier registered marks.
The examiner will usually raise objections based on:
- Absolute grounds (the mark itself has an issue, regardless of other marks)
- Relative grounds (the mark conflicts with an earlier mark)
- Application issues (the way the application was filed needs fixing)
Common Reasons You Might Receive An Adverse Report
Every adverse report is different, but there are a few “usual suspects” we see come up again and again for New Zealand business owners.
1) Your Mark Is Too Descriptive Or Not Distinctive Enough
Trade marks are meant to identify your business as the source of particular goods/services. If your mark is too descriptive (for example, it describes what the product is rather than where it comes from), IPONZ may object.
Examples of issues that can trigger this include:
- Using common industry terms that others need to use (e.g. “Fresh Bread” for a bakery)
- Using words that describe quality, quantity, purpose, value, or geographic origin
- Using a mark that’s widely used in your industry and doesn’t really point to your brand
This is often raised under the “distinctiveness” requirements in the Trade Marks Act 2002.
2) Your Mark Is Confusingly Similar To An Earlier Mark
This is a big one. IPONZ may say your mark is identical or similar to an earlier registered or earlier-filed mark, and that the goods/services are the same or similar.
This doesn’t require the marks to be identical. Similar spelling, sound, meaning, or overall impression can be enough - especially if the products/services overlap.
For example, you might think you’re fine because you’ve added an extra word, changed a letter, or used a different logo style. IPONZ might still consider the overall impression too close.
3) Your List Of Goods/Services Needs Work
Trade marks are registered for specific goods/services within particular classes (under the Nice Classification system). If your goods/services are too broad, unclear, or don’t match the selected classes, you can receive an adverse report.
This can happen when businesses try to “cover everything” just in case, but the wording doesn’t properly fit what IPONZ expects.
4) Your Mark Includes Restricted Or Problematic Elements
Sometimes the issue is a specific element in the mark, such as:
- Use of protected terms or symbols
- Potentially offensive matter
- Elements that could mislead consumers
Even where this feels unlikely, it’s worth taking the adverse report seriously and responding carefully - especially if your brand is consumer-facing and your marketing is subject to the Fair Trading Act 1986 (which is all about not misleading customers).
What Are Your Options After Receiving An Adverse Report?
Once you understand what IPONZ is objecting to, you can choose a strategy. The “right” option depends on your mark, your industry, your risk tolerance, and how important it is to secure registration for that exact branding.
Here are the main pathways.
Option 1: Respond With Submissions (Argue Your Case)
If you believe IPONZ is wrong - or you think there’s a reasonable way to interpret the situation in your favour - you can file written submissions responding to each objection.
Submissions might include arguments like:
- Your mark is sufficiently different overall from the earlier mark
- The goods/services are not actually similar in the marketplace
- The earlier mark is weak (e.g. highly descriptive) so consumers are used to distinguishing similar marks
- Your mark has acquired distinctiveness through use (in some situations)
This can be a strong approach, but it needs to be done carefully. The goal isn’t just to disagree - it’s to address the legal test the examiner is applying and explain why your application should still be accepted.
Option 2: Amend The Application (Narrow Or Adjust What You’re Claiming)
Sometimes you don’t need to fight the whole objection - you can fix the problem by amending the application.
Common amendments include:
- Narrowing goods/services so they don’t overlap with the earlier mark
- Clarifying wording so the description fits the class properly
- Removing or limiting problematic elements (where possible, depending on the issue)
This option can be practical if you’re happy with protection for your core offering and don’t need your registration to cover every possible future product.
It’s also a good reminder that your trade mark strategy should match your broader business strategy - for example, if your brand is also being used in contracts, licences, or partnerships, you may want to line up ownership and use rights clearly from the start (often alongside documents like a Confidentiality Clause when you’re sharing brand plans or product ideas early).
Option 3: Provide Evidence (If The Objection Is About Distinctiveness)
If IPONZ says your mark is not distinctive (for example, too descriptive), in some cases you may be able to respond with evidence showing that customers already recognise the mark as pointing to your business.
Evidence can include things like:
- Sales figures and time in market
- Advertising spend and reach
- Website analytics
- Media coverage
- Examples of branding in use (packaging, screenshots, signage)
- Customer declarations (in some cases)
This is very fact-specific, and it’s one of those areas where tailored legal advice is worth it - because evidence that looks persuasive to you may not meet what IPONZ needs.
Option 4: Seek Consent From The Owner Of The Earlier Mark
Where the issue is a conflict with an earlier mark, one possible route is to approach the owner of that earlier mark and ask for consent to your registration.
This can work, but there are practical considerations:
- The other party may refuse (especially if they see you as a competitor)
- They may ask for conditions (like limits on how you use the brand)
- You may need a formal agreement documenting consent and boundaries
If you go down this path, it’s important to capture the deal properly. A handshake agreement is risky when brand rights are on the line. Often, businesses document related arrangements in contracts such as an IP Licence or other written terms that set out what each party can and can’t do.
Option 5: Request A Hearing (If You Want A Formal Decision)
If the objection can’t be resolved by submissions or amendments (or you want the issue formally determined), you may be able to request a hearing.
A hearing is a more formal process where you present your case and IPONZ makes a decision. This is typically used when:
- You strongly believe the examiner’s view is incorrect
- The mark is commercially important and worth defending
- You need a clear “yes/no” outcome to move forward with brand investment
This step can be more time-consuming and technical, so it’s usually something businesses do with a trade mark lawyer involved.
Option 6: Withdraw And Refile (Or Rebrand)
Sometimes, the most commercial option is to step back and choose a different mark.
This can feel frustrating, but it can also save you months of back-and-forth and reduce the risk of future disputes. Remember, the goal isn’t just to get an application through - it’s to build a brand you can use confidently without constant legal risk.
If you do decide to pivot, it’s worth thinking about your business name and brand protection strategy together (including whether you need a company name, domain, and trade mark aligned). If you’re still figuring out the structure behind the brand, it can also help to lock down governance documents like a Company Constitution (where relevant) so ownership and decision-making about IP is clear from day one.
How To Choose The Right Option For Your Business (A Practical Checklist)
If you’re reading an adverse report and thinking “okay… but what should I do?”, you’re not alone. The best approach usually comes down to balancing legal prospects with commercial reality.
Here are some questions to help you decide your next move.
How Important Is This Exact Brand?
If your brand is already on packaging, signage, your website, and marketing materials, you may be more motivated to fight for it.
If you’re early-stage and haven’t launched yet, it might be cheaper (and less stressful) to tweak the brand now.
How Close Is The Conflict?
If the earlier mark is:
- in the same industry,
- used for similar products, and
- looks/sounds very similar,
then pushing ahead without a plan can increase your risk - not just with IPONZ, but with potential opposition or infringement concerns later.
Can You Narrow Your Goods/Services Without Hurting Your Business?
Narrowing your application can be a smart compromise. But make sure the trade mark still covers what you’re actually doing (and what you plan to do soon).
If you’re scaling into new categories, you might consider a staged approach: secure protection for your current offering now, then file additional applications as you expand.
Are You Prepared For The Timeline And Cost Of Pushing Back?
Responding to adverse reports can be quick in simple cases, but it can also take time - especially if multiple objections are raised or if you’re headed toward a hearing.
It’s a good idea to treat trade marks as part of your broader legal foundations, alongside your customer terms, contractor arrangements, and key internal documents. For example, if you’re building a new product with freelancers or designers, the question of who owns what IP should be clearly dealt with early (often in an Independent Contractor arrangement that addresses IP ownership).
How To Avoid Another Adverse Report Next Time (Or Reduce The Risk)
Even if you successfully overcome this adverse report, you’ll probably want to avoid repeating the process for your next brand, slogan, or logo.
Here are a few practical ways to reduce the risk of objections.
Do Strong Clearance Searches Before You File
A quick Google search isn’t enough. You’ll want to check:
- IPONZ trade mark database results (including similar spelling and sound-alikes)
- Common law use (brands that may not be registered but are still active)
- Domain names and social media handles
- Industry directories and marketplace listings
This is especially important if you’re launching an online-first brand, where customer confusion can happen quickly and publicly.
Choose A Distinctive Mark Where Possible
From a legal perspective, distinctive marks tend to be easier to register and easier to enforce.
In practice, that usually means avoiding:
- purely descriptive names,
- generic product terms, and
- names that closely reference location or features unless you have a strong strategy around them.
Be Strategic With Your Goods/Services
Broad claims can create unnecessary conflict. A targeted application that reflects your actual offering can sometimes be accepted more smoothly.
Also, make sure your business operations match what you’re claiming. If you’re collecting customer data through your website while selling under your brand, your compliance setup matters too - including having a Privacy Policy that reflects what you do in practice.
Get The Ownership Right From Day One
Trade mark issues often show up alongside ownership issues - especially where a brand is created by co-founders or developed under an agency arrangement.
Ask yourself early:
- Who is the applicant (you personally, or your company)?
- Who actually owns the brand and associated IP?
- What happens if a co-founder leaves?
Getting clarity early can prevent messy disputes later, and it’s one of the reasons many businesses put a Shareholders Agreement in place when they’re building and protecting valuable assets like brand IP.
Key Takeaways
- An IPONZ trade mark adverse report is not the end of your application - it’s IPONZ outlining objections you can respond to within a deadline.
- Common objections include lack of distinctiveness (too descriptive), similarity to earlier marks, and issues with how your goods/services are described.
- Your options usually include filing submissions, amending your application, providing evidence of distinctiveness, seeking consent from an earlier mark owner, requesting a hearing, or choosing a new mark.
- The “best” approach depends on how important the exact branding is to your business, how close any conflict is, and whether a narrower application still protects what you actually do.
- To reduce future risk, do proper clearance searching, aim for a distinctive brand, be strategic with goods/services, and get ownership and IP arrangements right from day one.
If you would like help responding to an IPONZ adverse report or planning a trade mark strategy that protects your brand properly, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.


