Benefits of Trademarking

By Troy Kirk and Lyzz Leise

Rembolt Ludtke Intellectual Property and Technology Practice Group

A mark of a successful business is a distinct and easily identifiable brand. One of the most effective ways to establish and protect a business’s brand is through trademark registration. Trademark registration offers businesses a powerful tool to distinguish their products and services while also safeguarding their brand identity. Without proactively utilizing the protections of trademark law through registration, businesses may expose themselves to significant risks.

So, what exactly is a trademark? A trademark can be a name, symbol, logo, design, slogan or even a color linked to the identity of a business’ products and services. Classic examples include the Nike swoosh logo or McDonald’s golden arches. However, trademarks are not just for large corporations — small businesses can also benefit significantly.

The main purpose of a trademark is to identify the source of goods and services and distinguish those goods and services from other sources, and trademark laws are established to protect this form of intellectual property. Taking proactive steps, including trademark registration, to protect trademark rights affords trademark owners with certain exclusive rights to use their marks and to prevent others from using and profiting from them.

There are numerous benefits that come with registering the trademarks associated with a business and its products and services. First and foremost, a trademark is a useful means to maintain and protect a company’s commercial reputation and the goodwill associated with the business’s goods and services. By registering its trademarks, a company will solidify its position in its industry by preventing others from using a similar mark and avoiding confusion amongst customers.

Additionally, having a registered trademark provides significant legal advantages. For example, a federal trademark registration establishes the validity of the mark and provides the owner the exclusive right to use the mark throughout the country, with certain exceptions. A federally registered trademark also provides nationwide constructive notice of the registrant’s ownership of the trademark, use of the “R in a Circle” registration symbol, ®, special statutory remedies, the option to pursue litigation in federal court, and an “incontestable” status if a mark is federally registered for five years.

Registering a business’s trademarks can also add significant value to the business. Trademarks are valuable assets that can enhance the company’s overall worth and can be an important factor to suitors interested in acquiring the business. Potential investors and buyers often view trademark registrations as an indicator of a well-managed business with a strong market presence.

Trademarking not only provides legal protection; it is also an investment in the longevity and success of your business’s brand. The Rembolt Ludtke team has extensive experience assisting clients through the trademarking process. If you are interested in trademarking your business’s name, logo, or brand identifiers, do not hesitate to contact us.

This article is provided for general information purposes only and should not be construed as legal advice. Those requiring legal advice are encouraged to consult with their attorney.