November 24, 2021
Importance of Trademark Registration
In today’s extremely competitive business market, you must have legal permission to own it if you possess something. Intellectual property (IP), which refers to intangible creations of the human intellect, must be registered in the form of atrademark, patent, copyright, industrial design, or geographical indication to ensure that illegal or unlawful people do not have the power to copy or represent your valuable assets.
Everyone deals with trademarks regularly, even if they aren’t aware of them. Trademark and the reputation that such brands represent have an impact on consumer purchase decisions. Business owners must understand why trademark registration is a valuable asset that may help them build their company.
First, we have to understand what a trademark really is.
TRADEMARK! WHAT'S THAT?
In common language, a Trade Mark is a source identifier for the Public to identify a product or service. The functioning of a Trademark is a concept which is used by many of us on daily basis without knowing the fact that the same is working in identification of a product and service. For example, Trade mark Law works when a person easily picks its choice of product from a super market among various others. It works for public in identification as well as for brand owners to get benefits of their hard work, time and efforts invested in the creation of the product or service. A product without its name is lost and cannot be easily found in the markets. Therefore, each product and service has been given a unique name which is called Trade Mark.
NOW! WHAT CAN BE A TRADE MARK?
The basic qualification of a good Trade mark is simple as that it has to be unique and capable of differentiating between one to another. The words which are common in industry and those other traders can adopt in course of their business cannot be a good option to adopt. The Trade mark law in India is governed by Trade Mark Act 1999 and Trade Mark Rules, 2017. The section 2 (M) of the Trademark Act, 1999 provide very broad definition of about a trademark, the same reads as below:-
“MARK” INCLUDES A DEVICE, BRAND, HEADING, LABEL, TICKET, NAME, SIGNATURE, WORD, LETTER, NUMERAL, SHAPE OF GOODS, PACKAGING OR COMBINATION OF COLOURS OR ANY COMBINATION THEREOF.
The further clarification has been given in Section 2(1) (Zb) of the Trademark Act, 1999 as below:-
“Trade Mark” Means A Mark Capable Of Being Represented Graphically And Which Is Capable Of Distinguishing The Goods Or Services Of One Person From Those Of Others And May Include Shape Of Goods, Their Packaging And Combination Of Colours; And—
The above is self explanatory that a trademark can be anything subject to that it is graphically represented, unique in nature and capable of differentiating from the others.
WHY SHOULD A STARTUP REGISTER ITS TRADEMARK?
Startups may protect their brand by trademarking it. By doing the same, a company name, one distinguishes one’s services and goods from those of rivals, and one’s intellectual property is protected. It prohibits competitors from duplicating or stealing their brand.
BENEFITS OF TRADEMARK REGISTRATION IN INDIA?
- Exclusive Rights only for Registered Trademarks: The owner of a registered trademark has exclusive Trademark Rights and can restrict any third company or individual from using it without permission. Furthermore, the owners are free to use the same trademark for all items or services under the applicable class(es).
- Builds an Atmosphere of Trust: The goodwill and confidence in the market among consumers are established by the quality of your product or service that corresponds to the registered brand. Furthermore, a registered trademark aids in expressing your company’s and brand’s distinct qualities and vision.
- Give Aid in Legalities: Your registered trademark in India cannot be used by a company competitor or anyone else. However, if another individual does the same, you can file a lawsuit for trademark infringement.
- A Valuable Asset: You establish an intangible asset and get exclusive rights to sell, franchise, assign, and commercially contract your idea when you register a trademark.
- Stand Out in the Tough Competition: Customers will be able to recognize your goods or service if you register a trademark. Consumers associate the product’s quality with the brand name, which builds the brand’s reputation in the market and draws in new customers.
- Gives you Authority at least for 10 Years: Once you have a registered trademark in India, all you have to do is pay the renewal fees, which are due every 10 years from the date of application. Furthermore, Online Trademark Registration and Online Trademark Renewal is now accessible at a significantly 10% reduced cost. As a result, you may successfully establish a unique picture of your company or brand without putting much effort and at a reasonable cost.
- The Symbol ®: After registering a trademark, you can use the ® sign to indicate that it is a registered trademark, and no one else can use it without your permission.
Top 10 REASONS WHY TRADEMARK REGISTRATION IS IMPORTANT FOR BUSINESS!
- Trademark Works as an Intermediate
Trademarks may transmit intellectual and emotional attributes and signals about you, your business, and its reputation, goods, and services in a single brand or logo. Your trademark doesn’t need to be a word or logo only. Regardless of language or alphabet, customers may recognize designs. The Nike “Swoosh” design is instantly recognizable in every language, including Swahili, Chinese, Spanish, Russian, Arabic, and English.
Know More About Trademark And Logo
- Protects you from Legalities
Failure in registration of a trademark exposes a company/person to lawsuits from competitors who may have registered a similar brand name, sign, slogan, or design. If this happens, a company will be obliged to change everything it has created, including the campaign, website content, and, to a significant part, it is brand identity.
- Helps you Spread your Business
A Customer without hassle can find a product of its choice with a registered trademark. The registered trademarks can be easily traced, and buyers can quickly reach your goods since it is an effective instrument with a distinct identity.
- Compliments your Products
Consumers can quickly recognize a trademark that conveys a specific level and quality of the goods. One glance at the Rolex logo, for example, shows that it is a high-end premium item with rigorous quality criteria. If someone else creates a low-cost watch with the Rolex logo on it, it will impact the luxury brand’s sales. Trademarks safeguard the quality that a brand represents.
- Lifetime Ownership: Once a trademark is registered, it can be protected for life time by paying renewal fees on every 10th year in India.
- Helps in e-selling and Government department:
In this global and modern world, Trade Marks have become vital part in smooth function of any type of business. When there are thousands of similar products and services are available to consumers in the markets, the Trade mark helps to Startups and small business to create and recognized their presence in the markets. Having a trademark registration helps Start-ups in doing hassle free business on well known platforms such as Amazon, Flipkart and Government e-tendering (GeM) and also helps in various government departments such as Custom Registrations and recording MRP labels in excise departments.
- Protects your Reputation in the Market
Another advantage of trademark registration is that it protects a company’s reputation. Lamborghini, for example, is a high-end luxury sports vehicle brand that costs a lot of money. Now, if a manufacturer of a less costly automobile tries to affix the Lamborghini brand to it, the firm will suffer a significant loss of reputation. Discerning luxury goods, customers would be unable to link the brand with a premium, high-end product and would thus refrain from purchasing it. Naturally, Lamborghini wants to ensure that no one else comes out with a low-cost product with the same name and emblem.
- Registered Trademark is a Valuable Asset
Over time, trademarks can gain in value. Your Trade Mark will become more important and valuable as your business reputation grows. Trademarks can pave the door for cross-industry development, such as moving from personal care to clothes or eyewear. Your trademark can lead to your company’s purchase by a larger organization if you want it to.
- Builds an Atmosphere of Autonomy
It’s no secret that the market is very saturated across a wide range of niches, each with its size and purpose. It’s a very gruesome sight. As a startup, being even the tiniest fish in the tiniest pond is quite difficult. In this regard, a trademark might serve as a crutch; once a startup has established itself, it will want to keep its excellent name.
Trademarking a brand helps a young company defend itself from the market’s blows by donning a protective blanket; it both directly and indirectly notifies others that the people in charge of the company are serious about their work.
- Financial Benefits
A company’s trademark adds value and recognition. As a result, a corporation with well-known trademarks and brands in its portfolio has a positive market reputation. It also makes it simple to raise funds on the stock market or borrow money from lenders to grow into other areas. It also makes it easier to locate collaborators and partners.
When starting a business, registering a trademark should be a top priority. It will safeguard a business from the start, ensuring its long-term prosperity. It is critical to protect a startup from the outset to acquire a competitive edge and avoid financial loss in the future.
We can’t see any reason why you should not get your trademark registered, can you? Do let us know your thoughts in the comment section below.
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