Top 10 Benefits of Trademark Registration Every Business Owner Should Know

A registered trademark is a brand identifier with legal protection. Using a unique name, design, or image, companies aim to establish a representation that helps their clients associate them with quality products or services.

As per government data, 466580 applications were filed for trademark registration online in 2022-2023.

Understanding trademark registrations

To use the ® symbol, it is mandatory to have the legal registration to prove exclusive ownership. This prevents misrepresentation of the brand image and infringement by other companies.

Being an intellectual property, every registration is valid for 10 years. Post this, the design or name that has been registered becomes public domain and can be used by anyone.

If the initial applicant wants to keep using this registered trademark exclusively, they will have to opt for a renewal. Further, to apply for trademark registration, you need to be one of the below:

• A person
• An association of person
• Trusts
• Proprietorships
• Societies
• An incorporated body
• A Private Limited Company
• Partnership firms
• Limited Liability Companies
• Hindu Undivided Family (HUF)

Exploring the benefits of a trademark registration

By opting for trademark registration, you can enjoy the below benefits:

1. Exclusivity and IP Rights

With trademark registration, you get legal authority to set your logo or brand image as your unique identity. The logo, title, or brand image designed becomes your intellectual property, thus granting you exclusive use.

Further, you can prevent others from using the same or a similar design as well as any unauthorized use.

2. Builds a Brand Image

By making your logo or name your identifier, clients associate this with the products and values that you want to market. This, in turn, builds an image and momentum in the market that boosts your revenue.

3. Boost Credibility and Trust

In making an image the identity of a brand, the brand’s value and goodwill gets associated with it. This then becomes a tangible marker for the brand’s reputation and in turn, builds client confidence.

4. Increases the Asset Value

The value of the trademark received increases proportionally to that of the private limited company, brand, or service. Since trademarks can be bought, sold, licensed, and assigned, they can become a potential source of revenue.

Thus, your business can claim revenue and even a deduction due to depreciation for the image.

5. Legal Recognition and Protection for Your Brand

Under Section 29 of the Trade Marks Act of 1999, as the person or entity (a private limited company, LLP, or LLC) holding the registered trademark, you have a clear advantage when any similar design is in use by a third party. Further, it also prohibits any objectionable use.

For brands that are getting increasingly popular, this provides an added layer of legal protection that prevents misrepresentation. The person or entity (such as a private limited company) holding the trademark registration can seek legal remedies to maintain the integrity of the brand’s image.

6. Allows International Protection during Business Expansion

Being a signatory to the Paris Convention for the Protection of Industrial Property, trademark registration made in India gets recognition and priority among countries party to the convention.

To add, as a party to the Madrid Protocol, Indian applicants can hold trademarks in multiple countries with a single application. Under Section 36 of the Trademarks (Amendment) Act, 2010 Indian applicants can secure international registration complying with the Madrid Protocol.

7. Prevents issues with the Domain Name

Websites are addressed and associated with domain names that serve as their unique identifiers. With over 751 million internet users in India alone, every brand needs to have an online presence.

When a brand holds a trademark registration, it gets priority over a matching domain name. This helps them build their websites around their brand name and in turn, makes it easier for their clients to identify them.

8. Prevents Unauthorized Use

With social media marketing gaining traction, most brands, even key market players are promoted via the various social media platforms. By opting for a trademark registration, you can protect your brand even when promoting it via social media platforms and channels.

9. Helps with Business Expansion

Brand names having a trademark registration can turn their brand image into a franchise. Further, they can also license the brand image. This is commonly seen when businesses (such as a private limited company) establish retail chains with multiple outlets across locations all over the country.

By licensing the registered trademark or turning it into a franchise, you can use it as a source of income as well as create market value. Further, customers are also more inclined to trust a brand with a registered trademark.

10. Establish Origin and Deter Infringement

By using a registered trademark, the brand can easily establish the authenticity of the product. This helps customers identify the product with ease and creates a positive association between the product and the targeted clients.

Further, being covered by the Trade Marks Act, all registered trademarks issued are listed in the public register which is open to inspection. This actively discourages people from copying any existing trademark symbol since infringement will lead to legal action.

To Conclude: Enjoying Legal Protection with Trademark Registration

Any person or brand can create a design and use the ™ beside it without any legal repercussions. However, to use the ® symbol, brands need legal authorization. For any unauthorized use, parties that hold the trademark registration can appeal for legal action.

Having the ® symbol beside the brand image increases the brand value and affords the company/ person legal protection. Thus, to protect your brand’s integrity and increase its value, apply for trademark registration.