IMPORTANCE OF TRADEMARK
/ BRAND
Ø
WHAT
IS THE MEANING OF TRADEMARK?
A trademark / brand /
brand name is a type of intellectual property consisting of recognizable
unique visual symbol which may be a word or a design, a
signature, name, device, label, numerals, or combination of colours which
identifies the source of the goods/service, or services, or other articles of
commerce to distinguish it from other similar goods or services originating
from another.
Key Points:
TRADEMARK
-
is a type of
Intellectual Property
-
is an easily
recognizable sign, design, word or symbol
-
denotes a
specific product / goods / service
-
differentiates
a product / service from all others of its kind
Ø WHAT IS THE DEFINITION OF
TRADEMARK UNDER THE TRADEMARKS ACT, 1999?
Section 2(1)(zb) of THE TRADE
MARKS ACT, 1999 defines Trade mark. According to the said Section “trademark”
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.
Ø
WHY
YOU HAVE TO USE TRADEMARK?
1.
A
unique marker of identity:
Firstly, trademarks are
important because they serve as a unique mark of identity. It could be the name
on the logo, the design, and the colours. Consumers do not even have to read
the words to figure out what it means. One look should tell them what it is all
about. For example, the shoe brand Nike doesn’t always have the words on its
logo, but most people know what the brand is all about.
2.
Mark
of standard and quality:
The trademark can convey a
certain standard and quality of the product that consumers can easily identify.
For example, one look at the Rolex logo indicates that it’s a high-end luxury
product with exacting quality specifications. If someone else comes up with a
cheap watch and sticks the Rolex logo on it, it will affect the sales of the luxury
brand. Trademarks protect the quality that brand stands for.
3.
Protecting
a reputation:
Another perk that trademark
registration offers
is safeguarding the reputation of a company. For example, Lamborghini is an
expensive brand of a luxury sports car and costs a lot of money. Now if a
manufacturer of a less expensive car decides to affix the Lamborghini brand on
to it, it will cause a big loss of reputation to the manufacturer. Discerning
buyers of the luxury products wouldn’t be able to associate the brand with a
luxury, high-end product and desist from buying it. Naturally, it’s in the
interest of Lamborghini to ensure that no one else comes up with a cheap
product of the same name and logo.
4.
Consumer
Retention:
A trademark signifies to
consumers that a product is of a certain standard and quality to the wider
consumer set. Registering a trademark prevents others from using it so that
consumers are not confused about the product. For example, Lux is a soap brand
that in India has been marketed as a `beauty soap’. If a manufacturer of
another brand of soap decided to use the same trademark, it will confuse
buyers, and they may end up paying for something they didn’t want.
5.
Strengthens
market footing:
It can take years of marketing
to get consumers to accept products. Some companies have trademarks that have
been used for many years and have a reputation that is hard to beat. So it’s
very important for companies owning such trademarks to protect it from unlawful
use so that its reputation remains undiminished. The Belgian beer brand Stella
Artois has been using the same logo relatively unaltered since 1366. Naturally,
it would want it to be protected against any misuse!
6.
Financial
benefits:
Trademarks add value and
recognition to a company. Therefore, a company with well-established trademarks
and brands in its portfolio enjoy a good reputation in the market. It also
makes it easy to raise money from the stock market, or borrow from lenders to
expand into markets in other countries. Further, it also makes it easier to
find partners and collaborators.
Ø
WHAT
CAN HAPPEN IF YOU DON’T REGISTER A TRADEMARK FOR YOUR BUSINESS?
If
you do not register your trademark, you will not have legal
rights to protect your Brand or Logo or Brand Name. Someone else can use the
same Brand and can run the Business which will adversely affect your business.
Following are the list of important reasons why you need to register your
Trademark:
Some of the main reasons to
register your trademark:
Trademark registration provides you an
exclusive right to use the unique mark for your business activity. Globally,
business valuations have evolved to be beyond physical assets possessed by the
companies. Companies like Uber, Swiggy, and Oyo are lean business models. As a
result of which, millions of customers trust and value these brands. The golden
arc of McDonalds or bitten apple logo of Apple Inc. shows the power of branding
and recognition. Due to which, the value of these brands is now in billions.
·
INCREASES
THE VALUE OF YOUR BUSINESS:
It is one of the Valuable assets of your
business. Brand or intellectual property grows along with the time you run your
business. The Companies like “Zomato” and “Paytm” are listed at a higher price
even when they are not making profits, because of the Brand, because of the
customers belief in the Brand. Trademark is also one of contributors to the value
of the Shares.
Without registration, you will not be able
to claim your Brand / Trademark. To valuate the Brand, registration plays a
major role
·
SAFEGAURDING
YOUR BRAND:
A registered trademark establishes
ownership over the brand /name / logo. It protects your brand from any
unauthorized use of the third party. The registered trademark proves that the
product totally belongs to you, and you have exclusive rights to use, sell, and
modify the brand or goods in whichever manner you want
·
BRAND WILL
LAST TILL THE BUSINESS RUNS:
Trademark once registered can last for
eternity. The Trademark registered by any firm remains with them forever. Yes,
the trademark registration shall be renewed after every 10 years. However, the
identity that it gave to the brand remains forever. Classic example for Brand
is “Kingfisher”.
Ø Conclusions
Compared
with other forms of IP protection, trademark protection is relatively less
expensive. Therefore, given the difficulties owners of trademarks have, when it
comes to using or enforcing their unregistered trademarks, along with the
commercial benefits of owning a registered trademark, we would recommend that
trademark/brand owners consider registration of valuable trademarks to them.
For
more details you can contact us
email:
dcsadvisors@gmail.com
Mobile:
9019421726
Author:
TEAM
DCS ADVISORS LLP
Disclaimer:
The
Views expressed are solely of the Author and the contents of this article is to
share the Knowledge on subject matter. Expert advice should be sought for your
specific circumstances.