What is a Trademark Registration?
A Trademark is a brand or a Service mark of the product. Before discussing Advantages and Disadvantages of Trademark, you have to understand what is the Trademark and its characteristics.
A Trademark includes any word, Name, any device, and any symbol which is used to make your brand different from others and distinguish your brand from competitors who are doing the same work. For example, persons who are in trade and have a growing business put a mark on their products to make it different and genuine from others. This article will provide you the advantages and Disadvantages of Trademark Registration
Trademark Registration Importance in The market?
In India, Trademark registration is derived by the Trademarks Act, 1999. The Trademark is not Mandatory in India. But, there are several advantages of Trademark In India. When you register a Trademark for your company, it will help you in growing your product and stand out from the rest . Trademark Registration is the most crucial process which creates a company’s brand and belief towards the customers, and also enables them to enhance their goodwill.
Trademark Registration protects the trademark and serves the advantages of trademark protection. It ensures the customers that the goods or services of the business are uncommon in the market. It serves protection against goods or services including a same trademark which causes confusion in the minds of the public. When a trademark gets registered, any fraud usage of the trademark for similar goods or services results in infringement.
The Advantages and Disadvantages of Trademark Registration
Advantages of Trademark Registration
Exclusive Use Rights
An important advantage of trademark registration is that it confers exclusive rights on the trademark. The trademark owner can apply it to all the products or goods that fall under the classes for which it is registered. Trademark registration provides the exclusive right to take legal action against third parties who use the same or similar mark for their products without authorized permission.
Builds Goodwill
The other advantage of Trademark registration online is that it helps in building goodwill and belief towards a brand. The credibility of a brand increases when it becomes popular among the customers. It helps in creating regular loyal customers who recognize its brand products or items and choose the same brand. A trademark with good reputation and goodwill can also help in getting funds from financial institutions.
Differentiates Products And Services
The goal of a trademark is to differentiate goods and services from those of its competitors and to create a brand identity. Trademark registration makes it easier to commercialize or market a product or service with a unique brand identity in line with the needs of the market. Brand identity describes the company’s quality, attitude and many other characteristics of the products and establishes its uniqueness among the customers.
Ensures Product Quality
A Trademark registration assures the quality of the product or goods. The product’s quality links with the brand by customers. It discovers an image of the quality of a particular brand in the market which helps to attract new customers. Thus, customers buy goods with a famous trademark in the market.
Supports in creation of an asset
It is an intellectual property of a company. Thus, a trademark is the company’s asset. A Trademark which is registered provides its owner the exclusive right of selling his own trademark, assign franchise or commercially use the trademark, giving a potential source of income.
Use of Symbol Ⓡ
When a trademark gets registered, Ⓡ symbol was used by its owner on the logo. The Ⓡ symbol states that the Trademark is registered and cannot be used by any third parties without authorized permission. It also ensures that the customers must be sure that the products or goods of the brand are original products of high quality.
Defense Against Infringement
If any person uses a trademark without the endorsement of the owner or makes any deceptive use of it, the owner can obtain an injunction against the act and restrain the person from making unauthorized use of the trademark. No one else, along with opponents, has the right to copy your trademarked logo.
Low cost protection for 10 years
Trademark enrollment is cost-effective and grants your company to preserve a definite brand. Maintaining online Trademark registration is easy and economical. Similarly, when you register a trademark, you just need to pay security fee and renewal fee, which is payable after 10 years of trademark enrollment.
Global Trademark Registration
If you want to expand outside India or simply want to register a trademark in another country, don’t worry, as a trademark already registered in India can be a solid foundation to gain international recognition. It is because a trademark which has already been registered in India can be used as the basis for Trademark registration in another country on account of all the goodwill accumulated.
Attract Human Resources
Popular brands are known to attract young talent. Also, young minds want to work for big corporations as it ensures more perks and more stability in salary. Trademark registration projects a positive picture of an organization. In addition, it reduces the cost of recruitment and other related exercises.
Disadvantages of Trademark Registration
Frequent renewal
Trademark registration is valid for a period of 10 years and has to be renewed after every 10 years. The primary disadvantage of trademark registration is that every 10 years you have to pay a fee to continue its usage. The trademark can be removed from the register for non-payment of renewal fee.
Weakest defense
Trademark registration is the weakest intellectual property right among patents, copyrights in terms of providing protection to goods or services. Trademark does not secure the products always; it just secures the marketing concepts. Hence, a trademark must go along with some other intellectual property rights being the weakest protection
Descriptive trademark :
There are several disadvantages of descriptive trademarks. Generic and descriptive are not suitable for registration with registrar. Generally, descriptive trademarks are considered as weak marks because they are not derived.
Risky Test
You cannot attribute the name of an Internet domain to a registered trade mark. The extent to which similar (not identical) formats infringe your business is a matter of debate in a civil action, with associated costs. Trademark registration is prima facie evidence in case of dispute.
Also, Read
How to Register Trademark for Partnership Firm
Marketing cost
If you have registered a descriptive trademark, you must also have a budget for marketing and advertising to create an association in the customer’s mind with the trademark to achieve exclusivity.
Additional charge
If the renewal fee is not paid within the stipulated time, the owner will lose the protection that comes with Trademark registration. The owner can then apply for restoration of the mark. Such application should also be accompanied by the trademark renewal fee along with the trademark restoration fee.
Classes cannot be changed
The classes mentioned by you in the application cannot be changed or added to after it is filed with the Registrar. Provided that the amendment made in the application for the purpose of removing the objection raised by the examiner cannot be counted as change in the application.