We cannot emphasise this enough: if you want to protect your business, products or services, and brand from competitors in the market, then trade mark registration is crucial – and this year is the perfect time to do so.
What do trade marks protect?
A trade mark is one of several types of Intellectual Property (IP) rights. It distinguishes your unique brand, product or service and can be used to protect your business name or aspects of your brand.
Trade marks can either be registered or unregistered. However, a registered trade mark can provide stronger legal protection than an unregistered one.
You can use a trade mark to protect a logo, phrase, word, letter, colour, sound, smell, picture, movement, aspect of packaging, or any combination of these that is related to your business or brand.
How trade marks add value to your business
According to the 2024 IP Australia Report, trade mark applications saw a steady increase in the past year, indicating growth in the entrepreneurial landscape and growing awareness of the importance that intellectual property rights have in a competitive business environment.
While the current levels remain below the peak numbers experienced pre-pandemic, this resurgence in applications signals a renewed confidence in Australian businesses. If you are a startup owner or entrepreneur, this provides the perfect opportunity to register your trade mark now.
If you are wondering about the value of trade marks, here are some benefits of trade mark registration for your company.
Trade marks can significantly boost your startup’s perceived value.
While a trademark protects your business, it also creates immediate value for your brand. As your business grows and improves, so does the value of your business.
A valid trade mark can be bought, sold, licensed, or even used as a security interest when acquiring a business loan. If you’re a startup looking to scale, sell, merge, raise funding for your business or there is inherent value in your IP, trade mark registration is a must.
Trade marks can be a source of revenue.
Trade marks can create an additional revenue stream for your business. This can be in the form of licensing deals, where you allow other companies to license your brand so they can use it in their products, or by way of franchise agreements.
You can also generate revenue by selling your trade mark. Having a registered trade mark and a strong brand and reputation can make your startup or business more attractive as an investment opportunity. Your business and trade mark will be perceived as more valuable the more exposure your trade mark receives.
Trade marks help establish quality standards.
Trade mark registration gives you the legal right to place the ® symbol next to your trade mark, while also legally deterring others from using your trade mark. This relays to your clients or consumers that your startup or business has done the hard work to build a reputation for quality products or services, as rewarded by intellectual property rights in the form of a registered trade mark.
Your clients and consumers will then have a positive association with your brand, building familiarity, trust and loyalty. This can also influence repeat business.
In order to maximise your registered trade mark, it would help to use it in marketing materials and on social media to make your brand more recognisable to potential customers. This builds brand identity and attracts clients to patronise your brand over similar products and services. If they continue to see your name when they look for their needed product or services, they will ultimately identify your startup or business as an authority in your industry.
Trade marks open up possibilities for international growth and expansion.
If you are aiming to expand your business and market your products or services in other countries, you will need to register your IP in those areas. You can also consider licensing your trade mark for others to use in their countries, which can help build your presence abroad while you focus on growing your business locally.
Trade marks “live” forever.
Unlike other IP rights like patents, trade marks can potentially last forever – so long as they are renewed every 10 years as calculated from the filing date. Recent changes to the Trade Marks Act and Regulations allow a 6-month grace period for all trade mark renewals with an extra fee. From a business perspective, trade marks can provide you with more long term opportunities. They are an asset that can last as long as your business.
Trade marks can protect you from financial loss.
Registering a trade mark can help your business avoid legal pitfalls in the future. Many small businesses are unaware of potential problems until they receive a cease-and-desist letter for infringing on another company’s intellectual property. This can incur thousands in damages as well as more money lost in fixing, updating, and rebranding your business.
Avoid this by engaging with a qualified and experienced trade mark attorney or law firm like Lazarus Legal. They can help research existing intellectual property rights and help guide you on the changes you need to make for your startup to avoid infringing existing rights. Remember that the earlier you begin trade mark registration, the more money you can potentially save.
Trade marks protect your company’s unique brand, products or services but they are also an integral part of your startup’s brand and identity. With trade mark registration, you can strengthen your brand and business value, build customer trust and loyalty, generate additional revenue, expand your business, and protect it from financial loss.
If you’re a startup, a registered trade mark can be one of the keys to success, so don’t wait until the next year. It pays to register it today. When in doubt, make sure to consult with an experienced lawyer to help you navigate the tricky matter of intellectual property rights.
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