5 Reasons Why Trademark Registration is a Must
As a newer business owner, you may be wondering what legal protections are necessary to take when founding and building your business. Understanding what your business needs to be successful can be overwhelming, and when you’re juggling so many different plates as a business owner, it’s easy to dismiss the importance of legal protection, believing that nothing will ever happen to your business.
But what if it does? And how can being set up well from the beginning bring your business more opportunities and save – and earn – you more money in the long run?
You’ve worked so hard to build your dream business, so why not put in the same effort to protect what you’ve created? While it may feel tedious and overwhelming now, taking the time to lay the foundation of your business on well-documented legal protections will be worth it in the long run.
Trademark registration is the best, and simplest, way for new business owners to protect their business.
What is Trademarking?
A trademark is a word, phrase, symbol, design, or a combination of these elements that identifies your goods or services. It helps customers recognize your brand in the marketplace and sets you apart from competitors.
According to the United States Patent and Trademark Office, you gain ownership of a trademark as soon as you begin using it with your goods or services. This usage establishes your trademark rights, but these rights are limited to the geographic area where your goods or services are available. To obtain stronger, nationwide protection, you must apply to register your trademark with the USPTO.
Trademark registration is the act of applying for federal protection of your trademark, giving you exclusive rights to the mark across the U.S. and its territories. While you are not technically required to register your trademark, registration determines the scope of rights your brand is provided with and strengthens your credibility should any infringement occur in the future, among other impactful benefits. In other words, it should be a non-negotiable for any serious business owner!
Here are five reasons why trademark registration is a must for your business:
1) Protects your brand’s identity, reputation, and, ultimately, your investment
As your business grows, it’s crucial that your investment is protected. In this ever-evolving, hyper-digital world, trademark registration makes protecting your brand easier, preventing competitors from mimicking or stealing your brand’s identity which can lead to a diversion of sales from your business and a loss in revenue, as well as the unfortunate addition of extensive legal fees to resolve the issue. By protecting your trademark, you are also ensuring the longevity of your business and allowing for the possibility of future investors or the sale of your business.
2) Prevents competitors from infringing on your trademark or filing a similar trademark
No more worrying about competitors and unauthorized users utilizing your brand assets for their own gain. Registering your trademark ensures you can rest easy knowing that your trademark will remain unique to your business and recognized on a federal level, preventing any unauthorized use such as the sale of counterfeit products.
3) Enhances brand credibility and consumer trust
In today’s competitive market, credibility and trust are invaluable assets for any business. Registering your trademark not only signifies that your brand is established and legally protected but also provides a robust defense against any potential infringements. When consumers see a registered trademark, it signals that your business is serious, professional, and trustworthy, in turn increasing consumer confidence and leading to greater brand recognition and loyalty. It reassures customers that they are investing in a brand that is committed to quality and authenticity, ultimately enhancing your reputation and solidifying your position in the market.
4) Provides essential protection in federal courts
According to the USPTO, trademark registration grants you the right to file an infringement lawsuit in federal court with minimal evidence required to prove ownership, significantly reducing the burden of proof. This advantage saves you time and legal expenses while strengthening your ability to enforce your trademark rights effectively. The streamlined process is a financial win, maximizing the likelihood of a favorable courtroom outcome and providing a powerful tool to protect your brand and its assets.
5) Allows you to expand your business with ease due to wide geographical protection
If expansion across states and into international markets is part of your long-term business plan, this benefit of trademarking is especially noteworthy. When you register your trademark federally with the USPTO (as opposed to registering within your state only), you are then registered into their public database and granted permission to use the trademark symbol as well as given exclusive national rights to utilize your trademark. You can generally rely on these rights for protection in all 50 states as you expand across state lines.
It is important to note the USPTO is not an enforcement agency, so any trademark infringement will be up to you to pursue.
From an international perspective, you can register your trademark using the Madrid Protocol which allows you to apply for trademark registration in multiple countries at once for their trademark office to review and accept - a significantly streamlined and simplified process and an important step in pursuing international expansion!
Maintaining Your Trademark Registration and the Risks of Not Trademarking
Trademark registration can last forever as long as you continue to use the trademark in commerce and can provide evidence of such, and file the federally required documents and fees to renew the registration every 10 years, making it a relatively easy legal protection to maintain once registered. Keep in mind that if you do not properly maintain your registration, your registration will expire and you will be required to start the process all over again.
The upfront effort of registering your trademark far outweighs the risks and legal repercussions of not trademarking which can include:
Loss of interest from potential investors or buyers down the road as they may view your business as high risk with lesser growth potential.
The potential to have to rebrand down the road, leading to a loss of brand equity and unexpected (and costly!) expenses.
Paying legal fees to amend your company name if you accidentally infringe upon another business's registered trademark.
Paying out royalties to another business due to infringing upon their registered trademark.
Start the Trademark Registration Process Today
Save yourself the headache and financial burden of potential long-term legal repercussions by ensuring your business is protected with trademark registration. By securing your brand's legal foundation early on, you can focus on growth and innovation without the constant worry of infringement issues. Trademark registration not only safeguards your business but also adds value and credibility, making it an essential step for any serious entrepreneur.
Not sure where to begin? Reach out today for a free trademark consultation! I’ll provide expert guidance and personalized support to help you navigate the complexities of trademark registration, ensuring your brand is protected from the start.
Disclaimer: This post is for legal education purposes only and should not be considered legal advice. No attorney-client relationship has been formed. To the extent this post constitutes attorney advertising, past results do not guarantee similar outcomes.
