WHAT IS A TRADEMARK?
A trademark is a term, logo, phrase, symbol, or design that is used to identify and differentiate one product from all others. A service mark is a term, logo, phrase, symbol, or design that is used to brand and differentiate one service from all others. However, the term trademark is frequently used to apply to both. Their objective is to safeguard consumers from misunderstanding. In fiscal year 2017-’18, there were 3,00,913 trademarks registered, 3,16,798 in 2018-’19, 2,94,172 in 2019-’20, and 2,55,993 in fiscal year 2020-’21. This is because people understand the importance of trademarks.
IS IT IMPORTANT TO TRADEMARK YOUR BUSINESS NAME?
Trademarks lapse once they are used commercially, therefore you do not need to register a trademark to own one. However, registering a trademark makes it easier to enforce and provides broader protection. If your company offers things, you should consider trademarking both your company name and your products. By trademarking your company name, you are branding the face of your firm. If your items have a distinctive name, you may choose to trademark them if the names fulfil trademark eligibility conditions.
If your product name merely defines the product, it is doubtful that it will be eligible for a trademark. Product trademark applications, like business name trademark applications, require you to identify the classes your organization covers but with more clarity. You must be as specific as possible about how you want to utilize the product trademark to identify your items.
WHAT DO TRADEMARKS MEAN IN BUSINESS?
The primary goal of trademarks is to avoid customer misunderstanding. Your company name, as well as how you present it with your logo, brand colours, slogans, or tagline, may help you stand out from the crowd. Your company’s identity is heavily influenced by its name. It describes your brand, including what people think and feels when they hear the name of your company. A business name that leads to excellent branding aids in the creation of loyal customers as well as new prospects for expansion. It not only tells clients what to anticipate from you, but it also helps you stand out from the competition.
REASONS WHY TRADEMARKS ARE IMPORTANT
It is always necessary to trademark your business, here is why:
- Registering your business name as a trademark helps you to prohibit others in your field from using the same or a similar business name. When you register your business name for trademark, you are putting others on notice, which helps you prevent legal action. However, if someone infringes on your trademark, you may file any trademark-related legal action in federal court.
- If you are looking for further investment for your firm, a trademark can assist investors to examine your company because it helps to verify ownership. Before investing in your firm, certain investors may demand you secure a trademark.
- It can catalyze increased value as a startup firm grows, especially if the business continues to grow. As a result, it is critical to employ a trademark for marketing activities to improve brand awareness and attract more customers.
- Trademarks enable firms to make the most of the Internet and social media. When people are looking for your products and services, they will type your brand into a search engine or a social media site (Facebook, Twitter, Pinterest). Higher traffic on a website or social media platform leads to higher rankings, which leads to even more traffic, customers, and brand awareness.
- When a business has a trademark, it must maintain a favorable reputation. People are more likely to work with and for a company that has a strong reputation. This is especially true when it comes to expansion. More personnel are required as a startup if the firm expects to grow. This necessitates the creation of a budget, making the trademark an essential asset when applying for company credit.
- By registering your company name as a trademark, you can safeguard your sales by preventing customer misunderstanding. Customers may mistakenly believe they are purchasing from you rather than your competitors if another firm uses the same or a similar name to yours and provides a comparable product.
- It’s no secret that the market is oversaturated in a variety of different segments varying in size and function. It’s a gruesome scene. Being even the smallest fish in the smallest pond as a startup is difficult. In this regard, a trademark might serve as a crutch; once a business has established itself, it will want to preserve a solid reputation.
- Trademarking a brand helps a new company to soften the blows of the market by wearing a protective blanket; it both directly and indirectly alerts others that the brains behind the company are serious about business.