Why are Trademarks Important?

by varun · Published January 26, 2021 · Updated December 24, 2021

A trademark is an intellectual property consisting of recognizable sign, expression or design which identifies a particular product or service from another. A trademark can be owned by an individual, business organization or legal entity. A trademark can be located on a package label or organization. Trademark is an intellectual property that is used to differentiate products and services of one firm or individual from others. A trademark is an unique identifier for a product or a firm. Owner of a trademark can pursue legal action for infringement of trademark.

In this article, we would explain in detail about the importance of having a trademark for your product and services. We are living in a globalized economy and it is important not just to protect your brand in India but in other countries too.

Meanwhile, you can have a look at detailed guide on IPIndia trademark search guide and following topics related to trademark on our portal-

Why are trademarks important?

Trademark is an intellectual property created by firms for their products and services. A brand is built over many years of efforts on part of firms and its stakeholders including owners, employees, vendors etc. This brand equity is needed to be protected from infringement and copying. In modern times, your products and services are identified by their names and logos. Trademarks are a perfect way to protect a brand equity from external risks. Moreover, trademark search would also help you in making sure that your product is not infringing on somebody’s else’s trademark somewhere in the world. It is very disheartening to lose control over your brand due to a trademark suit filed against you for infringement. Thus, a trademark is very important from an owner’s point of view. Let us have a look at a few reasons why trademark is important.

Trademark is and effective communication tool

A registered and well identified trademark is one of the best communication tools found in the modern economy. You don’t need to convey the quality of a mobile phone or a shoe when you see an Apple or a Nike’s logo in their packaging. This brand equity is built after decades of hard work and imagine consequences of not registering a trademark for famous Apple or Nike Logo.

Ease for customer

A well identified brand name or a logo is one of the greatest advantages for a company. Your products and services would be differentiated from competitors on the basis of a well identified name. This makes it easier for a customer to make a buying decision. Registering your brand name or logo is must as your competitors can use your unregistered logo or brand name even if it is well identified.

Trademarks are forever

Yes, you heard it right. Trademarks are forever. Though, a registered trademark remains valid for a period of 10 years but it can easily be renewed well before expiry date. Trademarks are nothing but an identity given to a product that remains with the customer forever and you don’t need to worry about someone else copying it or using it legally.

Trademarks are great for internet and social media

We are living in a connected world of internet and social media. Websites like Facebook, Youtube, Pinterest etc. are one of the most popular search engines after Google. With the help of registered trademarks, you can create your own brand pages on these social networking sites. These networking sites are one of the most important search portals for products by a modern consumer. Higher search on your web page would result in higher social media rankings which could translate to higher sales in future.

Trademarks are valuable assets

An asset is a thing whose value appreciates over time. Examples include real estate, Fixed deposits in banks, certain stocks etc. Similarly, trademarks are also assets whose value appreciates over time. More your business reputation grows, the more your trademarks value would grow over time.

Trademarks protect your brand

Protection of a brand is one of the most important objectives for having trademarks. Registered trademarks make it illegal for any business or individual to make use of your brand name and logo on which you have a trademark. Though, you can modify or change your brand over a period of time.

Trademarks give peace of mind to trademark holder

When you are starting a business, you might not be aware of the importance of trademarks initially. But, as soon as your brand equity grows and people identify your brand name or logo, then you might see your brand name or logo getting copied by other businesses. But, if you have already registered your brand name then you are within your rights to make use of these names and logos illegal and firms have to let go of using your trademarks.

Moreover, trademarks are valid over every country signatory to Madrid systems. Thus, you can stop someone in foreign country from abusing your brand name or logo.

Trademarks can make hiring easier

A well identified brand invokes positive feelings in the minds of potential candidates. A well established brand make it easier to find good candidates all over the world. It also helps in having a higher employee retention as employee tend to work longer for a established brand.

A trademark is an invaluable asset or a firm holding it. It created a unique identity in the minds of consumers and is invaluable in terms of customer choice formation. Though, it is equally important to select a trademark that is well suited for your brand. An incomplete or poor trademark search can result in future costs for the firm. Thus, it is important to hire a professional trademark research firm for trademark search for your product.