Trademark is one of the Intellectual property which helps people to protect the brand name and restricts other to use it in their personal use. Learn here what can be the importance of trademark registration.
A trademark is an observable design, sign, mark, or expression which enables a person to identify various products or services different from others. A trademark is defined in the Trademarks Act 2002. The trademarks which are used to identify services are called as service marks. The trademark can be located on a package, a label, or on the product itself. Any individual, business organisation or any legal entity can own a trademark.
Trademarks often influence the purchasing decisions of the consumers. It is very important to have a knowledge of why trademarks are important for effective commerce.
Following are the reasons why trademarks are important:-
Within the hustle bustle competition among businesses against each other, it is important to make your product distinguishable. They show a constant level of quality of the products and services. They capture the attention of the customers so that they remain loyal to your products rather than seek out for alternatives. They make your products or services to stand out.
Trademarks have a capability of conveying intellectual as well as emotional elements and messages about your business and business’s reputation, products and services. They work across borders, cultures, and languages effectively. They allow the consumers to rapidly select the desired product or service among other offerings. In spite of different languages spoken, trademarks can be recognised easily (like the NIKE “swoosh” logo).
Trademarks provide value beyond the core business and pave the way for an expansion of your business. The more business reputation grows, the more valuable your brand will be. They can be bought, sold, licensed, franchised, and even used as a security interest in order to obtain a loan for growing needs. Trademarks greatly hold and have a grip on the business. They are the only business asset that you can treasure its value over time.
The brand is the first thing that the consumers search for in a search engine or social media platform when they look for products and services. They effectively use the internet. From here, your visibility boosts up and builds your rankings. For the purpose of seeking information about a company and its products or services, trademarks serve as a means which is ‘top of the mind’. The internet serves as a platform requiring vigilance to police both proper uses of your brand and various infringements of it.
It is difficult to prevent forgeries of your brand, being a business owner. A registered trademark enables you to prevent counterfeit actions against your product. They also allow us to oppose the importation of substitution carrying your trademark or a mark similar to your trademark. The federal registration certificate provides a "stamp of approval" in the conscience of a judge that the trademark owner is the rightful owner. Furthermore, a federal registration provides the right to sue in federal court. A federal registration acts as a punitive means to potential infringers that you are the exclusive owner of the trademark.
When the trademarks are registered federally, the right to expand your business within the geographic regions of the country where you have not conducted business previously is preserved. Registered trademarks can legally avert others from using your assets for their own business, and thereby elevating the brand’s professional status and reputation above your competitors.
If there happens to be a registered owner of the same mark, then that owner would be having an indefinite period of time to find and sue you for infringement. If you are not registered under a trademark, and the registered company there exists, you need to redo all your business cards, stationery, advertising, and signs. This would amount to a greater loss. However, if anyone uses your registered trademark, you could be able to claim monetary damages as compensation.
These are the facts which will help you to understand the importance of Trademark Registration in India.
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