Are you a Business/Startup wondering why trademark is important for your business? You might have come across the MMT vs Ease my trip dispute or the Burger King vs Burger Singh dispute. You might also have come across hundreds of others. The name , brand or logo is something that no company wants to put at stake. At this point Trademark comes into the picture.
The importance of trademark is largely underrated. As its rightly said ”Precaution is better than cure”. You can apply for trademark registration online.
By getting a trademark, a person acquires absolute right for using the mark. The person who owns the Trademark, gets a right to the absolute use of it. It is a type of Intellectual Property.
Now let's take you through few of the many points that demonstrate why Trademark is important:
In the current market scenario, which comprises of numerous options to choose from, it becomes difficult to create a niche for your own product.
Trademarks basically help in distinguishing and identifying your products and services in the market and thus reduces competition.
It serves as a mark for the brand name, helping customers easily identifying and choosing a product over others.
Trademarks act as a perpetual asset as it does not expire as long as the owner makes it's active use.
As per the Trademark act, 1999, it has a registration period of 10 years after which it is subject to renewal. If not used for a continuous period of 5 years, it may be cancelled at the request of other party.
The rightful owner of the trademark has the option to renew it every 10 years up till an indefinite period. Failure to renew the trademark may cause removal of the trademark from Trademark registry.
For the benefits you reap out of a trademark over the years, the cost of registration/renewal is quite minimal.
In India, the cost of registration of Trademark for the Individual/Start up/Small enterprise is INR 4,500 and INR 9,000 in any other case. Whereas the fee for renewal physically is INR 10,000, and if done electronically it is INR 9,000.
As the businesses prosper over time, the brand also grows valuable. Trademarks provide value over time. It helps in bringing your businesses in the eyes of bigger corporations for attractive acquisitions and collaborations.
Being an intellectual property, they can be used as a security interest to finance expansion of your business.
They make the task of choosing convenient by allowing consumers to base their purchasing decisions on brand value.
It also helps companies in keeping the workforce motivated over time to create better brand value over years.
A good Brand name has the capability to attract better workforce and helps in keeping them retained.
Companies which are well known in the market and maintain a positive reputation attracts better workforce.
Trademark's helps a company in achieving positive reputation in the market in comparison to its competitors.
A business of good repute has the capability to keep people inclined to work with and for them.
While searching on any search engine, the first thing any prospective customer enters is a brand name.
The Higher the traffic on a website, the higher rankings, which eventually results in better and grown brand recognition.
Trademarks act as the "GO TO" address while searching for a company or its products and services. Thus, helps customers in better identifying and differentiating the products from other similar ones.
Trademarks do not work overnight. Its value develops over time on the basis of products/services the company offers to its customers, that is the main reason why trademark is important .
For start-ups, developing a brand value on the basis of a trademark might take some time, but once the trademark creates a niche in the market, there is no looking back.
Trademark uniquely identifies brand in the market and attaches customer trust to it. Therefore, trademarks help in creating long term value for businesses by establishing the trusted customer base.
A company retains a trademark as long as it follows proper compliances. Hence, serves as something which possesses great value to the companies for a long time.
Thus Trademarks play a major role in helping businesses grow and stand out in the market. A company develops great brand value on the basis of its trademark. It helps a company in building its goodwill in comparison of its competitors. Trademarks have the ability to build a trusted customer base over time in the market.
So there are no significant reasons that you shouldn't think of getting one for your business. Trademark is really important for your business and your peace of mind.