A trademark is a form of intellectual property that identifies the source of a good or service. It helps customers and potential customers to readily identify the source of a product or service, and to avoid being swindled.
In other words, trademarks help businesses to protect their intellectual property, and to achieve greater market exclusivity. In fact, valuable trademarks can bring businesses billions of dollars in revenue each year. So, what are the reasons why trademarks are so crucial to businesses? Read on to find out!
Important and precious assets
As your business grows in terms of reputation and revenue, the more valuable the trademark will be. It provides value beyond the core business as a reputable brand can easily expand into similar and related industry more easily.
Overtime, your trademark can also lead to opportunities such as M&A, or being directly offer to buy over by large corporations.
Trademark as a Branding Strategy
Trademark can be either a brand logo, a name or even a combination of both or more elements. This is effective in delivering your brand message to the public. Just like your company name.
It is important to be able to produce a high quality trademark as it helps in promoting your company’s value, products and services locally and even globally. This way customer can also identify and recognize your trademark and differentiate you from your competitors
It is also a good way to establish your brand identity, build reputation and brand recognition among customer, ultimately contributing to sales. This is because a brand with a trademark, is informing the world that they have faith in the success of their business, and they have something worth protecting.
A relatively inexpensive protection
Before you invest a lot of money and expand your new brand, it’s often advisable to conduct a trademark search to make sure your intended branding does not infringe on anyone else’s intellectual property rights or if it is available for registration.
This is particularly important as you do not want to receive a cease and desist letter from other brand owner or even a denial of registration by the authorities half way through when your brand has been operating for a certain amount of time. This will cause you to suffer great losses and might even need to start over with a new brand.
Trademark is territorial in nature; therefore, it is important to ensure your brand is appropriate protected in the countries you are operating.
All considered, owning a trademark is important to safeguard your brand. This grants you exclusive rights and protection towards the logo/name and can be taken legal action if someone attempts to use your brand without permission.
It is also an excellent tool to let you communicate with your customers while building value and differentiating yourself from competitors. Having your brand trademark also enables you to expand more easily and avoid unnecessary disputes and rebranding.