After confirming eligibility for the Madrid System, the next pivotal question is: "Where are your markets located?" Trademark strategy is not just about picking countries; it is about managing the rhythm of expansion and the allocation of resources.

1. Core Markets vs. Potential Markets

First, categorize your target markets into two types:

• Core Markets: Countries where you already have sales, subsidiaries, or definitive plans to enter within a year.
• Potential Markets: Countries with long-term interest but no immediate plans, where filing is primarily for "defensive protection" or "placeholding."

Strategy Recommendation: If your market is highly concentrated in 1–3 core countries (e.g., only the U.S. and Japan), "National Applications" often provide more direct legal protection and allow for fine-tuning the goods/services description. Conversely, if you plan to launch across multiple regions simultaneously (e.g., various European and Southeast Asian countries), an "International Application" is the most efficient way to cover extensive ground.

2. The Pace of Expansion: Simultaneous vs. Phased

The way your brand enters a market dictates the best filing route.

• Simultaneous Launch (The "Big Bang"): If your product is sold globally via e-commerce or international exhibitions at once, the Madrid System is your best tool. It allows you to secure a priority date across dozens of member states with a single filing, ensuring your brand is protected everywhere at the same starting line.
• Phased Expansion: If you prefer to master one market first before moving to the next (e.g., focus on Taiwan for two years before considering the U.S.), National Applications offer greater flexibility. While the Madrid System allows "Subsequent Designation" later on, the process and fees may not always be more advantageous than a direct national filing.

3. Regional Legal Characteristics

Market layout must also consider the legal systems involved:

• Madrid Members: Most developed economies (e.g., EU, U.S., UK, Japan, Korea) are members. The international route is highly convenient if your markets fall within these regions.
• Non-Members: It is crucial to note that several key markets (e.g., Taiwan, Saudi Arabia, parts of South Africa) are not members of the Madrid System. If these are your primary targets, you must budget for "National Applications" in these jurisdictions.

Conclusion: Flexibility is Key

Market layout is not a binary choice. Mature brands often adopt a "Hybrid Model":

1. Use National Applications for core, high-risk markets where precise local legal expertise is needed to ensure registration success.
2. Use International Applications for broad defensive coverage across potential markets (e.g., Europe, Southeast Asia) to manage costs.

Once your market layout is defined, we move to the next critical topic: "Budget Planning." Is an international application truly cheaper? What are the hidden costs to watch out for?