InsightsInterview

Interview

Why Mongolia Should Be in Every International Trademark Portfolio

Alimaa Erdenebat on first-to-file risk, bad faith registrations, and what foreign counsel need to know

Alimaa Erdenebat — Founder, Alimaa IP Law

Alimaa Erdenebat

Founder & Practice Lead, Alimaa IP Law
Licensed IP Agent & Attorney-at-Law (Mongolia & New York)
Author, Mongolia IP Chapter — Kluwer Law International

Mongolia is not always the first jurisdiction that comes to mind when international brand owners think about trademark protection. Why should it be on their radar?

That is a fair observation, and it reflects a gap that I see regularly in global trademark portfolios. Mongolia tends to be overlooked, often because brand owners assume it is a peripheral market or that protection can wait until commercial activity begins. Both assumptions carry real risk.

Mongolia is a first-to-file jurisdiction. Rights are acquired through registration, not through use. A brand that has been trading internationally for decades has no automatic protection in Mongolia simply by virtue of that reputation or use. The moment a third party files for an identical or similar mark, they acquire priority — and the original brand owner must then challenge that registration, which is costly and uncertain.

We have seen this pattern repeatedly. A company enters the Mongolian market or begins sourcing from Mongolia, and only at that point discovers that its mark is already registered locally by an unrelated party. Sometimes those registrations are opportunistic. Either way, the position is far more difficult to resolve than it would have been with a timely filing.

How significant is the risk of bad faith registrations in Mongolia?

It is a genuine and well-documented risk, particularly for internationally recognised brands. Mongolia's accession to the Madrid Protocol has increased visibility of international trademark portfolios, and there are local actors who monitor international filings and register marks in Mongolia ahead of the brand owner's arrival.

The 2021 trademark law reform was an important development in this regard. Bad faith was introduced as an explicit ground for refusing or invalidating a trademark registration. This gives brand owners a stronger basis on which to challenge opportunistic filings than existed under the previous legislation.

However, the existence of the ground does not eliminate the need to act promptly. Litigation and invalidation proceedings take time and resources. Prevention through early filing remains the most effective strategy.

For foreign law firms managing global portfolios, I would recommend treating Mongolia as a standard inclusion in filing programmes for clients with any exposure to Asian markets, mining, commodities, or the growing Mongolian consumer sector. The official costs of registration are modest relative to the risk of leaving the market unprotected.

“The conversation with clients has shifted from 'do we need to file in Mongolia' to 'when should we have filed in Mongolia.'”

You mention Mongolia's growing consumer sector. Can you say more about the commercial context?

Mongolia has undergone significant economic development over the past two decades, driven largely by its mining and resources sector. That growth has created an expanding urban middle class, concentrated primarily in Ulaanbaatar, with increasing purchasing power and consumer demand for international goods and brands.

Retail infrastructure has developed accordingly. International brands across fashion, food and beverage, technology, and consumer goods are present in the market or actively seeking entry. Mongolia also occupies a strategic position between China and Russia, and is developing trade relationships across Asia and with Western markets.

For brand owners, this means Mongolia is no longer simply a gap to be noted and deferred. It is a market where counterfeiting occurs, where distribution agreements are being signed, and where the absence of trademark protection creates concrete commercial exposure.

What are the most common mistakes you see in how international portfolios handle Mongolia?

The most common is simply omission — Mongolia is not included in the original filing programme and is added reactively, often after a problem has already arisen. By that point, the options are more limited and more expensive.

The second is over-reliance on the Madrid System without local follow-through. Filing a Mongolian designation through WIPO is a sound approach, but it is not the end of the matter. If the Intellectual Property Office of Mongolia issues a provisional refusal — whether on absolute or relative grounds — a local response is required within a strict deadline. We receive instructions from foreign counsel who have missed or nearly missed those deadlines because they were not aware that a refusal had been issued or did not have local representation in place.

The third mistake is narrow specifications. Brand owners sometimes file in Mongolia with a restricted list of goods or services to reduce costs, then find that their protection does not cover the full range of their commercial activities in the market. A modest investment in a broader specification at the outset is almost always preferable to the cost of additional filings or enforcement gaps later.

For a foreign law firm looking to instruct Mongolian counsel for the first time, what should they look for?

The most important factor is direct lawyer involvement. Trademark work in Mongolia is sometimes handled through intermediaries or non-lawyer agents rather than qualified legal practitioners. For routine filings that may not create difficulties, but for anything involving prosecution, opposition, enforcement, or contentious matters, qualified legal representation makes a material difference — both in the quality of the work and in the firm's ability to represent the client before the relevant authorities and courts.

Foreign counsel should also look for familiarity with cross-border practice. A Mongolian correspondent who understands how international law firms work — their reporting requirements, conflict procedures, billing expectations, and communication standards — is far easier to work with than one who does not. The practical aspects of a correspondent relationship matter as much as technical legal knowledge.

Finally, I would look for genuine trademark specialisation rather than a general practice firm that handles trademarks among many other areas. Mongolia is a small market for IP, and the number of practitioners with deep trademark expertise is limited. That expertise matters when matters become contentious or procedurally complex.

Any final advice for international brand owners and their counsel on Mongolia?

File early and file broadly. The cost of a trademark application in Mongolia is low relative to most markets. The cost of not having protection when you need it — whether because a third party has filed first, a customs action is needed, or a distributor has registered the mark in their own name — is considerably higher.

Mongolia is not a difficult jurisdiction to work in if you have the right local counsel and you plan ahead. The procedures are well-established, the Intellectual Property Office is accessible, and the legal framework, particularly since the 2021 reforms, is increasingly aligned with international standards. The risk is not complexity — it is neglect.