The name and logo of your business can be one of the most important and valuable assets you will ever own. While you may consider trademark registration too expensive, failing to register your trademark can be far more expensive and can cause irreparable harm to your business. Registering your trademark is the only way you can be confident that the valuable branding of your business – for example, the name and logo – is legally protected. It also helps you maximise your return on investment.
To us, registering your trademark is a “no brainer’. Here are the top four reasons why.
What is a trademark?
A trademark is the design used to distinguish your business’s products and services from your competitors. They can come in many forms, including a name, letter, number, phrase, slogan, image, colour, shape, scent, movement, aspect of packaging, or any combination of these. For many small businesses, their trademarks will commonly be a business name and logo.
How can a trademark add value to your business?
1. Sell more
You cannot have a successful business unless you can successfully sell your products and services. Having a recognisable and exciting brand is one of the most important sales tools you’ll ever have as a business owner, and your trademarks is vital for developing and protecting your brand.
Many of the world’s largest companies have built their identities around their trademarks: consider the ‘apple’ on all of Apple’s products, Nike’s ‘Swoosh’ logo and ‘Just Do It’ slogan, or McDonald’s ‘Golden Arches.’ These trademarks are instantly recognisable by consumers all around the world and has been a key part in their success.
Strong brand recognition allows you to develop a relationship with your customers that can have a powerful influence on how customers will interact with your business; especially when deciding whether to buy from you or a competitor.
This means more loyal and regular customers, and more sales for your business - and when customers are out shopping for your products or services, you can be sure your trademark will be the first thing they’ll be looking for.
2. Protect your brand
The unauthorised use of your trademark (also known as ‘passing off’) can be incredibly damaging to your business. Unfortunately, there are many people who may try to take advantage of your business’s success; often by placing trademark on their own sub-standard products, services, and counterfeit goods.
Misuse of your trademark can be confusing for your customers and has potential to severely damage the reputation of your brand, especially when other inferior products or services are mistaken as your own.
It is only by registering your trademark that you can be confident your brand is protected against unauthorised use. Trademark registration gives allows you to prevent anyone from using your mark without your permission and puts you in the strongest possible position to take action against anyone misusing your trademark.
3. Make more money
Trademark registration gives you a wide range of exclusive rights that can be extremely profitable for your business, including:
Right to use - Trademark registration gives your business the exclusive right to use, market, and under your trademark. This is extremely valuable for building and marketing your businesses brand and attracting more attract more customers.
More customers means more sales; meaning money coming into your business!
Right to licence - The more successful your business becomes, the more valuable your trademark is to you and others.
The right to licence your trademark provides your business the option to seek a number of additional and profitable revenue streams. It gives you the choice to allow manufacturers, distributors, and even franchisees, to pay you to use your trademark. This can lead to very lucrative partnership and branding deals with other businesses who are wanting to capitalise on your brands success.
Right to sell - If you ever wish to sell your business, the good will and reputation you have developed in your trademark will be one of the most important things any purchaser will want to buy. Having a registered trademark may also increase the value of your business, as purchasers will often pay extra for the peace of mind that the trademark they’re buying is protected.
4. Spend less now to avoid big costs later
It is often said that you have to spend money to make money. Well, when it comes to trademarks, you have to spend money to save money. While many businesses are put off by the expense of trademark registration, the potential costs of not registering your trademark can be worse.
Litigation: Legal disputes are extremely expensive, time consuming, and are a major distraction from your business.
Registering your trademark ensures that protecting your brand from infringement is easy, efficient and cheap. This means you’ll spend less money and time spent fighting in court and more on what you do best; dealing with your customers.
Rebranding: Without a registered trademark, you will be exposed to the risk of other businesses copying your brand, or even enforcing their own trademark rights against you.
The expense of rebranding can be crippling for many small businesses. Not only is there the high cost of updating your name, logo, packaging, website, and other branded materials, you can also face major losses in revenue due to lost brand recognition with customers.
Preventing your own infringement: The process of applying to register your trademark allows you to make sure your name, logo, or other mark does not have the potential to infringe any other registered trademark out there. This will protect you from the costs of any unintentional infringement of another business’s trademark down the track, as well as preventing you from the possibility of an expensive rebranding as a result.
Key takeaways
Your trademark is be one of the most valuable assets that your business will ever own and deciding whether to invest money into your brand is one of the most important decisions you can make for your business.
While trademark registration can be expensive, it is definitely worth investing to protect yourself your business from the huge expenses resulting from trademark infringement, and to guarantee you won’t lose the brand and business you spend so much time, money and effort into building.
Need help?
If you would like to find out more about how trademarks can benefit and protect your brand, or if you need assistance in registering your trademark, call us on 02 9199 4563 or click below to book a free consultation.
This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you. Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.