Why should you go for trademark registration?

A Trademark (TM) popularly known as a “Brand name” is a symbol or sign, consisting of numbers, alphabets, colours or combinations, that we often use to identify a product. Today’s market solely depends on the Trademark. Every individual consumer is interlinked with Trademarks.

Right from our morning coffees to the newspaper we read or the perfumes we use, upto the last product we use in a single day, the trademark of the product is what made us want the product in the first place. The trademark provides the identification to a product and that is what makes it stand out amidst the other similar competitors.

It is a representation of the reputation associated with the product. Consumers have started to check the brand name of the product before even knowing the cost, which makes the trademark determine the value of the product in the demand and supply chain.


Importance of Registering a Trademark:

Imagine investing all your energy and time into perfecting a cup of coffee for your loved one and someone else just swoops in and not just takes the coffee but also claims to have made it themselves. Now if a simple cup of coffee can cause so much damage to your reputation or image with one particular person, then imagine the risk involved in keeping a trademark unregistered in such a competitive market.

Anyone could simply claim your work as theirs and the brand of the product or service is lost as simple as that. If the trademark is unregistered, the only recourse would be to undergo a court procedure that could take you years. But getting your trademark registered would help avoid all such mishaps.

Risks involved in having an Unregistered Trademark:

A trademark is merely a brand that offers business exclusive rights over the product or service. In the present day market, the competitors often tend to live off of other’s goodwill and find an easy way out. There are a lot of risks involved in not registering a trademark such as:

    1. You lose your rights: The Indian Trademark registration system functions on the first come first serve basis. When you have an unregistered trademark and another company registers it in the trademark registry before you, they get the exclusive right over the name and could also stop you from using it. Although the Indian system recognises prior users, it would only give preference to the territorial nature of the trademark. In case the new company have a wider area of operation, they would still have greater coverage. This could be avoided if the trademark was registered earlier.

    2. Your target consumers could get poached: The owners of a Trademark have the exclusive right to stop another business with a similar sounding name or trademark from using it. So the other company that registers after you have a legal right to operate anywhere in India and this could dilute the brand name of your product. The consumers could believe that their product is yours and they eventually become the rival’s consumer niche.

    3. You could be a victim of cybersquatting: With the increasing demand for online shopping and e-commerce, the domain of your unregistered trademark could be stolen and sold to another company. There are various instances where duplicate domains have been created to deceive the target audience and hence disrupting the operations of your business. There is a whole network that thrives on the buying and selling of such domains of successful businesses and you could fall prey to them at any time if the trademark is not registered.

Benefits of registration: 

    1. The very basic advantage is that a registered trademark provides legal safeguard to your intellectual property. Once the trademark is registered, the owner has no worries about their IP being stolen by another person. In case of infringement too, you can recover upto triple times the damage from an infringer. It’s a win-win.

    2. Popularity in the market is gained by word of mouth these days. So, the more you advertise, the more consumers you get. Registering a trademark allows you to publicly advertise your products and services.

    3. Once your trademark is registered, you get the exclusive right to stop anyone else from using a similar trademark.

    4. The owner has the right to even sell, assign, franchise or economically contract the trademark to another person and make money out of it. This works as a great asset creation.

    5. Registration helps expand your business. By providing your target consumers with innovative and efficient products or services, the business can be expanded by expanding the customer base. It provides recognition for the brand and increases the goodwill of the business among the customers.


Conclusion: 

Registration of a trademark is a vital step in running a business. Though it is not mandatory under the law, it is always advisable to register a trademark in order to protect your intellectual property and hence safeguarding your band name. It gives a way for the business owners to protect themselves from being robbed of their brand and encourages start-ups to enter the market without fear.
For more information on Trademark search and Trademark registration log onto www.vakilsearch.com 

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