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.
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