What is a trademark? A trademark is a sign capable of distinguishing the goods or services produced or provided by one enterprise from those of other enterprises.
Any distinctive words, letters, numerals, drawings, pictures, shapes, colors, logotypes, labels, or combinations used to distinguish goods or services may be considered a trademark. In some countries, advertising slogans are also considered trademarks and may be registered as such at national trademark offices.
Examples of trademarks most relevant to home-based business owners include: 1. Trademarks: Microsoft; Fruit Loops; Ford (these are products or goods); 2. Service marks: Blockbuster; McDonalds; Kinkos (these are services); 3. Logotypes: CBS eye in a circle; Apple Computer’s Apple; Nike Swoosh; and 4. Slogans: Microsoft’s “Where Do You Want to Go Today?”
What Are Trademarks For?
The main function of a trademark is to enable consumers to identify a product [whether goods or services] of a particular company so as to distinguish it from other identical or similar products provided by competitors. Consumers who are satisfied with a given product are likely to buy or use the product again in the future. For this, they need to be able to distinguish easily between identical or similar products.
By enabling companies to differentiate themselves and their products from those of the competition, trademarks play a powerful role in the branding and marketing strategies of companies. The image and reputation of a company create trust, which is the basis for establishing a loyal clientele and enhancing a company’s goodwill. Consumers often develop an emotional attachment to certain trademarks based on a set of desired qualities or features embodied in the products bearing such marks.
Why Should Your Company Protect Trademarks and Service Marks?
Registration, under the relevant U.S. trademark law, gives your company the exclusive right to prevent others from marketing identical or similar products/services under the same or a confusingly similar mark. Without trademark registration, your investments in marketing a product or service may become wasted if rival companies used the same or a confusingly similar trademark for identical or similar products/services. If a competitor adopts a similar or identical trademark, customers could be misled into buying the competitor’s product/service thinking it is your company’s. This could not only decrease company’s profits and confuse customers, but may also damage the reputation and image of your company, particularly if the rival product/service is of inferior quality.
In addition, a registered trademark may be licensed to other companies, thus providing an additional source of revenue for your company, or may be the basis for a franchising agreement. On occasion, a registered trademark with a good reputation among consumers may also be used to obtain funding from financing institutions that are increasingly aware of the importance of brands for business success.
How Can Your Company Protect Its Trademarks and Service Marks?
Trademark protection can be obtained through registration and, in some countries, also through use. Even where trademarks can be protected through use, you are well advised to register the trademark by filing the appropriate application. Registering a trademark will provide stronger protection, particularly in case of conflict with an identical or confusingly similar mark.
Is Registration Of Your Company’s Business Name Sufficient?
It is important to understand the difference between trade names and trademarks. A trade name is the full name of your business, such as “Blackmark International Inc.,” and it identifies your company (including legal character). A trademark, however, is the sign that distinguishes the product/service of your company. A company may have various trademarks. For instance, Blackmark International, Inc. may sell one of its products as BLACKMARK but another as REDMARK.
Companies may use a specific trademark to identify all their products/services, a particular range of products/services, or one specific type of product/service. Some companies may also use their trade name, or a part of it, as a trademark and should, in that case register it as a trademark.
Five Point Checklist for Selecting a Trademark
Before selecting a trademark for your company, do the following:
1. Check that your trademark of choice meets all the legal requirements for registration.
2. Conduct a trademark search to make sure that it is not identical or confusingly similar to an existing trademark.
3. Make sure the trademark is easy to read, write, spell, and remember, and make sure it is suitable to all types of advertising media.
4. Make sure the mark does not have any undesired connotations in your own language of any of the languages of potential export markets.
5. Check that the corresponding domain name [i.e. Internet address] is available for registration.
