What Is a Trademark and Why Should You Register One?

Operating a business encompasses various professional fields. As an entrepreneur, you're regularly involved with accounting, sales, marketing, customer service, and maintenance, amongst other tasks. However, one area that frequently receives less attention is the safeguarding of the company. This doesn't refer to office security systems or GDPR compliance.

How many entrepreneurs realize their brand could become their most valuable asset? The best means to protect it is by securing a registered trademark. Numerous brand aspects can be shielded through trademark registration, and every company should consider applying for registration for their name, logo, vital product/service names, and slogans. Does your company boast a registered trademark? We do! Thanks to the assistance of Ipriq Intellectual Property Law, we've been reminded of the paramount importance of this. Here's more information about trademarks.

Trademarks play a crucial role for numerous reasons. Here’s a concise compilation of those reasons.

1. Registered trademarks legally establish ownership of your brand.

Trademark rights typically arise from registration. Although some countries permit limited trademark rights through use, this is either unattainable or exceptionally challenging in most jurisdictions. Generally, securing your trademark is essential to ensure solid legal ownership of your brand.

2. Registered trademarks broaden your freedom to operate.

If you don't register your trademark, it’s probable that another entity, perhaps in a different country, will register a similar name. Most disputes aren't intentional. Over 15,000 trademark applications are filed daily. Therefore, you're unlikely to be the sole individual contemplating a specific name. If someone registers a similar name in a country important to you, it could become very problematic and expensive.

3. Trademark registrations alert others of your rights.

When you register your trademark, your ownership details are publicly accessible, allowing other companies to discover and take note of them. Trademark registration is a valuable way to decrease the chance of someone infringing your rights.

4. Save financial resources.

Trademarks represent a relatively inexpensive form of intellectual property protection. Registering your trademarks will save costs during a conflict, regardless of whether you are accused of infringing or accusing someone of violating your rights. When your rights are infringed, the cost of legal proceedings, regardless of outcome, will burden all involved parties.

5. Foster enhanced partnerships.

In numerous countries, particularly in Asian markets, local partners often require that your trademark is protected. This requirement arises because they are also investing money, resources, and their reputation in distributing your products to their customer base within their markets. They are similarly susceptible to imitations and counterfeiting if you've not protected your trademark. Failing to protect your trademark signals a lack of interest in safeguarding their interests. Thus, by protecting your trademark, you simultaneously safeguard your local partner's interests, and can therefore attract superior partnerships.

6. Increase your brand's value.

Registered trademarks elevate your brand's value. Based on ISO standard (10668:2010), registered trademarks are one of the three key elements influencing your brand’s overall valuation.

7. Investors value intellectual property protection.

Investors give greater value to companies that have secured their intellectual property. This arises for several reasons. The value of intellectual property has the potential to grow indefinitely (unlike tangible assets), and protection minimizes operational risks.

8. Trademark registration signifies serious intent.

A company that fails to protect its investments in brand building and its commercial identity is difficult to regard seriously. Trademarks serve as indicators of commercial origin. If a company does not assert ownership over its own commercial identity, how can it be taken seriously?

9. The ® symbol benefits your marketing efforts.

Being able to use the ® symbol signals to customers that the product and its commercial origin warrant protection. The ® symbol communicates to the public that the brand owner believes in the product and seeks to prevent competitors from exploiting its reputation. The ® symbol boosts consumer confidence.

10. Expanding revenue streams.

Trademark protection is essential for licensing. Licensing isn't just for massive multinational corporations. We work with many startups that incorporate both their technology and brand in their licensing models. Technology licensing is a great method to promote your brand. In the long run, when executed correctly, the brand will prove more valuable than the technology itself.