A trademark represents your business. You can trademark a brand name, logo, symbol, and even a sound that refers to your business.
A trademark depicts others that your company owns the products or services you offer in an exclusive manner. Customers are at times driven into purchasing a product by its brand name so it is important to make the brand stand apart by first having a unique trademark. Recognizable symbols help to create healthy relationships with customers and maintain loyal repeat buyers.
Your need for a trademark registration depends on the scale in which your business is established or growing. If your trading operations take place in one state only and there is no interstate trading going on, then you do not require a registered trademark.
When you acquire a business license from the state you trade in, you gain legal rights to your Company’s name. No other person or company can use your business name unless allowed to.
But if you want to expand your business and you start trading in other states as well, your trademark will not be protected. In this case, you will have to register your trademark which will ensure protection as well as authenticity to your brand. Registering your trademark helps prevent problems like doing business in states with companies that are operating under the same trademark.
You may also be inclined to register your trademark if you provide goods or services on the internet. E-commerce merchants often trade with customers outside their business’ home state. A registered trademark will protect your company’s identity when conducting online business in other states.
The several benefits of registering your trademark:
- Communication: A trademark makes it easier for you to communicate your ideology with your consumer base. Certain designs or words in your logo may prove to be effective in selling and marketing your products. Usually, consumers associate with certain intellectual and emotional messages that come across via your trademark.
- Valuable Asset: With time and the pace at which your business grows, the value of the trademark appreciates subsequently. There are times when trademark as an asset grows to such a level that it surpasses the overall value of the company. It can then be sold, provided on a lease or used as a security while procuring loans.
- Availability: A trademark helps customers to recognize a particular company. In a competitive world when several others are offering the same service or selling the same good as you are, it is difficult to stand out. Here, trademark comes to your rescue. It captures the attention of the customer and makes them less likely to shift to another brand. They also know who they are dealing with, hence, is less likely to shift to an alternative.
- Recognition: When a customer looks for your products on the online portal, a unique registered trademark helps the portal to filter results and display your name on the top. The filtered results which display your name on the customer’s screens happens only when there is higher traffic for your products, which translates into higher rankings thus fetching in more customers and more brand recognition.
- No Expiry Date: Your trademark does not expire as long as it is being used. Once registered, there is no provision for a renewal.
While choosing a brand name, the owner must keep in mind that it must justify your product. Thorough research must be done in order to avoid probable cases relating to infringement.
All the above points cater to the question why a company needs a trademark to save itself.