How the Use of a Trademark Adds Value To Your Business

Introduction

Whether we go shopping for groceries in a supermarket like ‘Spencers’ or to a local sellers hub (sabzi mandi), we are making a subconscious choice or preference, based on the quality of the products, the price point, the goodwill of the brands or service providers and our previous experience in availing their products and services. Now, it is important that such products or services be made identifiable to the customers, old and new, and that the products and services are distinguishable from their similar competitors. So, how to go about it? What we need here is something called a ‘Trademark’, usually, it is a combination of words or numeric or both.

The brand of Spencer’s supermarket.

Thus, so far we have established that, for a new business to make its products and services distinguishable and make a name for itself, it needs a distinctive trademark.

Kinds of Trademark

While there is the usual (i) traditional trademarks such as a combination of words and numeric, used to name the product or the brand, there is also the existence of (ii) unconventional marks such as a distinct sound or a distinct smell.

Rules for Registration of Trademarks

It should be noted that for a trademark to be successfully registered;

1. It should be distinctive enough and not be a generic term for the goods or services.
2. It could be suggestive of the goods and services the brand provides.

Microsoft suggests that it is software for small computers.

3. It could be suggestive of the origin of the products.
4. It could be a newly coined word having no reminiscence of another phonetically similar sounding or similar spelling trademark.

Nikon is a newly coined term having no previous meaning to it.

Benefits of using Trademarks

1. It is a mark of your products and services offered.
2. Your products are easily distinguishable in the market.
3. It assures the quality of the products and services offered.
4. Builds trust among the customers.
5. Strengthens the brand name.
6. Effective in advertising of the products and services.
7. Stimulates the effective growth of sales.
8. Boosts alternative revenue earnings through the opening of franchises, etc.
9. Helps communicate your message to the public, such as quality, price point, ethics of the company, goodwill of the company.

Conclusion

Thus, a Trademark will not only help your business be identified and distinguished among customers and potential customers, but it will also help in building the name of your business. This promotion of the brand is directly proportional to its use and exposure, which in turn generates goodwill and increases the value of the trademark. It is essentially a cycle of benefits tied to the use of a proper Trademark.

Sources:

1. Law Relating to Intellectual Property Rights, V K Ahuja
2. https://www.citma.org.uk/resources/trade-marks-ip/intellectual-property-blog/how-your-trade-mark-adds-value-to-your-business-blog.html