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Importance of Registering a Trade Mark
Also see: ■ Common Misconception Regarding Trade Marks ■ Major advantages of Trade Mark Registration
Why is it important to register a trade mark? If your trade mark is not registered, then it may be difficult or impossible to prevent others from using the same or a similar mark for the same or similar goods or services. If a competitor of yours does so, this is likely to result in confusion in the marketplace; consumers or customers may buy your competitor’s goods or services believing them to be yours.
Naturally, this can seriously harm your business!
What about registered business names or company names? Having your business name or company name registered is unlikely to provide any effective protection. For more information about this, click here.
Are there other ways to prevent someone copying my trade mark or brand? There are other possible legal remedies to prevent competitors from using similar trade marks (in particular, under the common law and under the trade practice laws). However, there are certain requirements for these remedies that may be difficult or impossible to satisfy, and taking legal action for these remedies can be costly. A registered trade mark can provide a far more effective and straightforward statutory remedy.
What are the major disadvantages of not registering my trade mark? If you are unable to stop your competitor from using a trade mark which is the same as or similar to yours, then, apart from the fact that this is likely to directly affect your revenue, it may also prevent you from properly developing your reputation in your brand for your goods or services. This is likely to have a major negative impact on your business in the medium to long term.
An even more serious situation is where you have already developed a reputation in your brand. If you cannot stop your competitor from using a trade mark which is the same as or similar to yours, then your competitor may “get a free ride” on your reputation. In many cases, a reputation is the result of having high quality goods or services, providing superior service, or an effective marketing strategy. These usually involve a significant investment in money, time, and know-how.
Why should your competitors be free to get the advantage of your investment and then on top of that, to compete with you?
Your trade mark may be seen as the “place” where your reputation (the reputation of your goods or services) resides. For this reason, a trade mark can be one of the most valuable and important assets of a business and should be protected accordingly.
What are other major advantages of registering my trade mark? For a discussion of other significant advantages of registering your trade mark, click here. For a recent real-life example, click here
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