As the name suggests, a trademark is an intangible intellectual property (IP), a word, symbol, design, logo, or combination. These factors all contribute to a company entity's identity and distinguish it from others. Trademarks, specifically registered trademarks, increase a company's goodwill and verify the identity or recognition, which aids in attracting new customers.
Any business's trademark distinguishes it from competitors and conveys goodwill and brand value. The brand's value and the value of its trademark are directly inversely correlated. Therefore, it is impossible to undervalue the significance of any trademark registration. The following are some reasons for obtaining trademark protection:
- Recognition: A trademark is connected to any brand as its alter ego. It might lead to an immediate awareness of the goods or services for a business. They can also certify the quality in addition to this.
- Beneficial in the long run: Unlike other IP protection tools like copyrights or patents, trademark rights are perpetually given, provided the registration is timely renewed for a new 10-year term each time.
- Competitive Advantage: Trademarks can give entrepreneurs a significant competitive edge because they appreciate along with the valuation of businesses. In addition, buyers can recognise the new product through its trademark in product diversification, helping the business increase its market value.
- Legal Security: The registration of trademarks increases brand identity protection and allows business to protect their market interests without incurring unnecessary legal fees or litigation. In addition, they gain statutory IP rights that cannot be misused or exploited by third parties.
- Advertisement: Besides many other advantages, trademarks are among the best advertising methods since they help people form an impression of a brand. As the firm expands its market share, its trademarks acquire a familiar identity, making it simple for customers to connect to the brand.
- Trust Factor For Investors: Trademark rights are fundamental when approaching investors to seek investments, which helps raise money.
Any business needs trademark protection since it holds the brand's reputation and goodwill. A trademark loss or infringement can be a significant setback for a business and cause unforeseen losses. Therefore, it is recommended to give it a registered trademark status with the help of experts from Trademark Click.
A business must take the following actions to strengthen and safeguard its brand identity as they pertain to its trademark:
- Trademark Search: Before deciding on a brand name, a full trademark search in India should be conducted on the proposed mark(s), including due diligence for any resemblance in names, logos, or other symbols that may be shared with any third-party company.
- Choosing a Unique trademark: To have simple recognition and reach for the brand, a unique trademark reflecting the product or service it provides should be determined.
- Regular trademark use: Regular trademark use keeps the mark active and prevents it from being abandoned. According to the Trademark Act, any trademark that has not been used for five years and three months straight is subject to abandonment or cancellation and is open to use by any other organisation.
- Continuous observation: New businesses must closely monitor other players in the market and rivals who might mistakenly associate their trademarks with similar goods. In this situation, competent legal assistance should be obtained to safeguard the brand.
Every effort should be made to protect trademarks from infringing intellectual property rights or unauthorised usage because they are crucial to any business. Any lapse or omission in trademark protection could lead to theft or losses, reducing the company's market share and goodwill. One can think of trademarks as an investment in their brand. Over time, they build tremendous goodwill and provide a sizable consumer base.