Why Trademarks Are Important for Your Business
The terms ‘trademark’ and ‘brand’ are practically interchangeable. Trademarks directly influence consumer purchasing decisions, and the right trademark can help to grow your business (just like the wrong trademark can impede its growth). For these reasons — and many more — it is critical for business owners to understand why trademarks are so important, as well as how to use them to effectively grow their business.
What is a Trademark?
A trademark can be a word, symbol or design (think Nike “swoosh”), phrase, or any combination thereof. It is used to identify your company’s products or services, distinguish you from competitors, and help customers recognize you quickly and easily. Many different things can be trademarked, including:
Product names (Coca-Cola)
Product nicknames (Coke)
Logos (Nike’s “swoosh”)
Sounds (McDonald’s “I’m Lovin’ It”)
Business names
Slogans (“American Runs On Dunkin’”)
Color combinations (John Deere yellow and green)
Smells (“minty” scent of pain-relief patches)
Your trademark really is one of your company’s most crucial assets. As such, it is extremely important to do your due diligence before choosing your company’s brand. Make sure it aligns with your intended image and message, and that your chosen brand doesn’t infringe on anyone else’s mark. Failing to choose the right brand the first time can result in financial losses, damage to your company’s reputation, and even litigation.
How Trademarks Can Help You Protect and Grow Your Business
Trademarks can effectively convey your intended message, as well as your business’s values, products and services, and its overall reputation. Read on for more examples of how trademarks can help you protect and grow your business.
Trademarks help customers find you quickly and easily. When a potential customer views a well-known trademark, they immediately know what they are getting. As long as your company maintains a good reputation, your trademark will be a powerful tool for distinguishing you from competitors and capturing the attention of customers.
Trademarks are valuable assets that can appreciate over time. Just like real estate, they can be purchased, sold, licensed, or even used as collateral to secure a loan. They also provide opportunities for expanding beyond your core business. For example, a chain of fitness centers with a good reputation might decide to expand into protein powders and other supplements. Customers who recognize the quality fitness brand, will be more likely to trust the quality of the supplements.
Brands that people associate with success, quality, and other positive feelings can dramatically impact the hiring process. In addition to attracting more qualified candidates, well-known and highly-respected trademarks are also associated with better employee retention.
Trademarks provide legal protection — other people are prohibited from registering trademarks that are similar to yours, and you can sue them if they infringe on your mark.
They also help guard your business against fraud and counterfeiting, and can even be used to stop the importation of products that infringe on your mark.
As long as you keep using your trademark and periodically renew the registration, it will never expire. Think of some of the most recognized brands in the world today. The Pepsi-Cola trademark has been around for more than 120 years.
They’re cheap. It could cost as little as a few hundred dollars of filing fees to obtain the trademark registration initially, and another few hundred dollars five years later. After that, it costs a few hundred dollars every 10 years from the registration date to maintain.
Remember, if your trademark does a good job of differentiating your brand from your competitors, not only will you be easier to find, your brand will receive better protection from infringement.
Contact a California Trademark Attorney Today
If you wish to apply for a trademark, it is in your best interest to retain legal counsel early in the process. Your attorney will provide legal guidance and can help you navigate the application process and deal with the United States Patent and Trademark Office (USPTO). If issues arise, having an attorney by your side becomes absolutely critical.
Your brand, ideas, and innovations are valuable assets that need to be protected. At Parsus Law, our Pasadena trademark lawyers are well-positioned to help you protect and grow your business through trademark registrations, brand development, licensing, and other strategies to maximize the value of your intellectual property. Contact us today to learn more.