A trademark is a form of intellectual property that refers to an easily recognizable word, phrase, symbol, or design that identifies and distinguishes the source of the goods or services of one party from those of others.
The significance of registering a trademark goes beyond mere protection; it’s about securing a valuable asset that contributes to your business's overall success. Trademarks are typically used to establish the exclusive identity of a product and recognize the company’s ownership of the brand.
A trademark constitutes a significant element for an entity, not only because it helps in distinguishing products within the same systems but also because it enables consumers to differentiate a product from that of a company’s competitors based on certain words, design elements, or slogans associated with a product or service.
From the perspective of an entity, a trademark is not merely a symbol or aspect of identity; it is a repository of the entity’s reputation and goodwill in the market.
Trademarks may or may not be registered. However, for a trademark to be protected against infringement, it is necessary for it to be registered. Therefore, it is of utmost significance for entrepreneurs to understand the benefits of registering their company’s trademark. This article will discuss in detail the numerous benefits of registering a trademark in India.
Proprietors of a registered trademark have the benefit of exclusive rights, i.e., they can decide to utilize the same trademark for every item that falls under the classes specified in the application.
It prevents third parties from advertising similar services or products using confusingly identical trademarks. This exclusivity is crucial for maintaining brand integrity and ensuring that your brand stands out in a crowded marketplace.
Registering a trademark will assign intellectual property rights to the product, providing exclusive rights to the owner. Consequently, it will be protected against infringement by any third party who uses the same without permission from the owner.
Infringement is defined as the usage of a trademark that is deceptively similar or identical to the original holder of a registered trademark by an unauthorized person to promote goods and services which fall under the same class of services or products under which the original trademark is registered.
An owner of the registered trademark can make use of the ® symbol to indicate the exclusive right. In light of this, any registered trademark owner can seek redress in a court of law from infringement of their exclusive rights of usage. Sections 27 and 29 of the Act give the entitled registered proprietor of the trademark the right to take action against infringement.
Additionally, Indian courts have been supportive of trademark holders, recognizing the importance of protecting intellectual property in fostering a healthy business environment.
At the first sight of a trademark, it is what differentiates a product from its rivals. A customer base will be formed based on such a unique trademark and the brand value that a product possesses. This will act as an efficient commercial tool.
It captures the attention of the consumers and impacts the buyer’s decision-making, thereby reducing confusion concerning the authenticity of a brand. In markets saturated with similar products, a distinct trademark can be the key factor in influencing consumer choice.
A registered trademark is an expression of the identity of the entity that possesses it. A trademark communicates with the consumers about the company’s brand value, net worth, and goodwill in the market. Once a product is associated with a trademark, consumers will begin to link the product with a certain standard of quality, features, and performance level in the market.
Soon, a trademark begins to act as tangible proof of the quality of a product or service that is being offered. Hence, it can be said that a registered trademark would enhance the image of the company in the market by maximizing consumer confidence.
A registered mark remedies the owner from the struggle of going through the tiresome necessity of proving distinctiveness in each step of proving the false representations, thus acting as an asset in itself. A trademark acts as an intangible asset in aspects like income tax or accounting.
In fact, these trademarks can be sold, bought, licensed, assigned, used commercially, or even be franchised in any way the owner chooses to. It is also a potential source of income as revenue can be generated by selling, licensing, or assigning them to third parties.
A trademark’s economic value also increases parallel to the business growth and the mark’s popularity. The value or cost of the trademarks can be recorded in the account books, and a record revenue or deduction on depreciation can also be claimed on them.
As India is a signatory to the Paris Convention for the Protection of Industrial Property, the Indian application of trademarks has the right of privilege and priorities to secure registration and protection of their trademarks in countries that are signatories to the convention. Under this convention, the registered owner can assert a priority or prior user claim on the basis of the trademark registration certificate in India.
When such a right of priority application is filed by any one of the contracting States of the convention, the applicant is eligible to apply for protection in any other contracting States just within a span of six months.
Furthermore, the registration and the goodwill garnered in India would also act as a strong foundation for gaining recognition internationally. Further, as per Section 36D of the Trademarks Act, 1999, introduced via the Trademarks (Amendment) Act, 2010, Indian applicants can now secure international registration and protection for their trademarks.
This international aspect is particularly beneficial for businesses looking to expand their operations globally, ensuring their brand is protected in multiple jurisdictions.
In India, registration of a trademark will be valid for a period of ten years from the application submission date. It can be renewed timely with no upper cap on the number of times it can be renewed.
The online trademark registration process in India is very convenient and cost-efficient, and it is generally issued within a span of a few days after filing. This cost-efficiency, combined with the long-term benefits of registration, makes it a worthwhile investment for businesses of all sizes.
Trademarks also help in furthering the company’s expansion by attracting new consumers who would start associating their value to the signs that represent the company.
A positive perception is fostered around the company’s trademark, thus drawing the attention of more clients and consumers. A strong trademark can act as a magnet, pulling in new customers who are looking for the reliability and quality that your brand promises.
A registered trademark not only secures your brand but also enhances your market position. It gives you a competitive edge by ensuring that your brand remains distinct and unchallenged in the marketplace. Companies like Infosys and TCS have built their global reputation partly through robust trademark protection, which has allowed them to maintain a competitive edge and drive market leadership.
There are multi-fold advantages of getting a trademark registered in India, alongside exploring how it enhances business engagement, opens up avenues for growth internationally, and improves brand value. The exclusive right conferred upon the owner acts as a shield against infringements and objectionable usages of the mark.
Therefore, it can be conclusively held that a good trademark is one that is simple to recall and helps build the reputation and trust of the services and goods provided by a company, besides maintaining the originality and distinctiveness that sets it apart in the market.
For Indian businesses, leveraging the benefits of trademark registration can pave the way for sustained success and growth in an increasingly competitive global marketplace.
The process can take anywhere from 6 months to 2 years, depending on any objections or oppositions.
While there is no single global trademark, international registration can be facilitated through the Madrid Protocol.
"Choosing 'My Startup Solution' for my startup's accounting needs was one of the best decisions I made. The team's dedication to accuracy and their personalized approach to my financial situation set them apart. They go above and beyond to ensure I'm well-informed and compliant, allowing me to focus on my business's growth."
"The team at 'My Startup Solution' has been a true partner in my entrepreneurial journey. Their insightful financial guidance and meticulous attention to detail have helped me navigate complex financial matters seamlessly. With their support, I can confidently steer my startup toward success, knowing that my financial matters are in capable hands."
