Branding is one of the most important aspects of a successful business, allowing customers to distinguish your goods or services from competitors and let them know what to expect in terms of quality.
In this article, you will discover the top benefits of a trademark holder.
What Are the Benefits of a Trademark Holder? – Full Overview
Optimized Protection Against Infringement
The foremost benefit of trademark registration is the added layer of protection against infringement. US law protects unregistered trademarks, which are referred to as “common law” marks.
Considering trademark rights come from their use in business, it is possible to enforce a trademark in court without necessarily registering it. However, the level of protection granted to common law trademarks cannot be compared to a federally registered trademark.
Whether it is intentional or unintentional, trademark infringement may result in the loss of customers, poor brand awareness, and a feeble reputation. When a competitor’s brand creates a “likelihood of confusion” among potential clients, it will not end up in a positive outcome.
While it is possible to register a trademark with the state where the company is established, the best strategy for added protection is to register with the United States Patent and Trademark Office (USPTO).
National and International Validation
Enforcing common law trademarks can be a challenge if the case of infringement did not happen locally. Many business owners think that using a business mark in the public domain is sufficient to protect it. However, this is not an ideal approach.
Expanding a business with a common law trademark is a risky move, as it could result in a likelihood of confusion with local marks that are already in use. Conversely, a federally registered trademark enjoys nationwide protection.
Once a mark is properly registered with USPTO, it will be shielded against infringement in all fifty states. The registration will also grant the right to use the ® symbol, which adds another level of validation and professionalism to the brand.
Registering a trademark with USPTO is the first step for international registration.
Once a company has a federally registered trademark, it is possible to file for international protection through the Madrid Protocol (protection applied to more than 90 member countries) or file directly with each country’s trademark office.
Solid Trademarks Lead to Increased Market Value
Recently, a study on trademark usage found that companies with registered trademarks actually become more valuable than companies with non-registered trademarks over time.
The study was based on the observation of the stock performance of companies that filed for more trademarks each year (compared to the business’s total assets) and had better performing stocks throughout the next year than companies that did not engage in trademark filings.
Many investments do not increase in value over time, such as equipment, inventory, marketing materials, or other essential elements. However, owning a registered trademark will eventually increase the value of your company.
With relatively small upfront costs and renewal fees, it is possible to own an asset that will keep increasing in value as the business grows.
Do You Want to Enjoy the Benefits of Federally Registered Trademarks? – Immediately Seek Expert Legal Guidance
A well-versed legal advisor in US trademark law, Attorney Romy B. Jurado willingly wants to help you succeed. Contact us today by calling (305) 921-0976 or emailing [email protected] for an individual consultation.