Trademark registrations benefits for SMEs
by Karima Gulick, registered patent and intellectual property attorney.
I love talking about business strategies, and really diving into the details of what makes a company and its offerings great. I also love seeing small and medium enterprises using their secret sauce and what differentiates them from their competitors to enhance their Intellectual Property (IP) strategies and monetize their intellectual property. There is nothing more exciting than using what you’ve already built to generate additional streams of income, and that’s the beauty of a properly protected and enforceable IP portfolio.
Having worked closely with business owners for over seven years, I’ve gained a deep understanding of the challenges involved in building a sustainable and successful company. An essential part of this journey is developing your brand and raising awareness about your business name and offerings. Sometimes the only way to truly protect your work is by protecting your brand.
Often, we focus on refining our ideas and launching the business, which is crucial. However, it’s important to remember that once your idea goes public, there’s a risk someone might find it appealing enough to copy. This is where the value of a strong trademark comes into play.
Infringement, expansion, and monetization are just a few reasons why trademark registration is critical. Partnering with a knowledgeable team that understands these aspects can significantly benefit your business.
Understanding these risks and opportunities clearly highlights the need to explore the key benefits of trademark registration for your business. Let’s dive into how securing your trademark can provide substantial advantages.
What’s the difference between a trademark and a business name?
A trademark and a business name serve different purposes and have distinct legal implications. A business name is simply the official name under which a company operates and is registered with the state for identification and tax purposes. It does not, on its own, provide any brand protection outside of preventing other businesses in the same state from registering the exact same name.
On the other hand, a trademark legally protects symbols, logos, words, or phrases that identify and distinguish the source of goods or services. Trademarks prevent others in similar industries nationwide from using marks that are confusingly similar to yours, thus protecting your brand across the entire country.
In essence, while a business name registers your company’s identity for state-level administrative purposes, a trademark provides legal protection to ensure your brand’s exclusive rights in the marketplace.
What other things are trademarkable?
Beyond traditional logos and brand names, a variety of other elements can also be trademarked to protect your brand’s unique characteristics. These include:
- Slogans and Taglines: Short phrases used in advertising that are distinctive and memorable can be trademarked.
- Colors: Specific colors can be trademarked if they are strongly associated with your brand, like Tiffany blue.
- Sounds: Unique sounds that identify a brand, such as the NBC chimes, can be protected as trademarks.
- Shapes: The distinctive shape of a product or its packaging, like the Coca-Cola bottle, can be trademarked.
- Patterns: Decorative or unique patterns used on products or their packaging can also be protected.
These elements, when consistently associated with your brand, can be trademarked to secure your market identity and prevent competitors from creating similar associations.
How much does it cost to trademark?
The cost of trademarking can vary depending on several factors, including the number of classes of goods or services and the method of filing. According to the USPTO’s fee schedule, basic electronic filing options through the TEAS system range as follows:
- TEAS Plus: $250 per class of goods/services – This option requires more detailed information upfront, making it less flexible but cheaper.
- TEAS Standard: $350 per class of goods/services – This offers more flexibility in terms of the information you can provide and when.
Additional costs may include legal fees if you hire an attorney, which is highly recommended to navigate potential complexities. These can range from a few hundred to several thousand dollars depending on the complexity of your trademark and the lawyer’s rates.
Remember, maintaining your trademark registration also incurs fees over time, including renewal fees which are due between the 5th and 6th year, and every ten years thereafter.
For a detailed breakdown of all potential costs and fees, check our pricing guide and refer to the USPTO’s fee schedule for the most current information.
Can I monetize my trademarks?
Absolutely, trademarks can be a significant source of revenue for your business. One direct method is through licensing, where you allow another company to use your trademark on their products in exchange for a fee. This approach can bring in steady revenue without the need for additional capital investment.
Another strategy is branding partnerships. By aligning your trademark with another complementary brand, you can enhance your visibility and tap into new customer bases. These partnerships often lead to increased sales and shared marketing costs, boosting overall profitability.
Additionally, trademarks can increase the valuation of your business, particularly if you plan to sell. A well-recognized trademark can be a key asset, attracting potential buyers and commanding a higher price in the marketplace.
What’s the process to start registering my trademark?
Initiating the trademark registration process involves several clear steps. First, conduct a comprehensive trademark search to ensure your mark is unique and not already in use. This step is crucial to avoid potential legal conflicts and rejections from the USPTO.
Next, prepare and submit your trademark application to the USPTO. This application should accurately describe the mark, list the goods or services it will be used with, and include any required drawings or specimens.
Once submitted, you’ll need to monitor the status of your application through the USPTO’s Trademark Status and Document Retrieval system. If the USPTO has any questions or issues, they will issue an Office Action that you must respond to promptly to keep your application moving forward.
Finally, upon approval, your trademark will be published in the Official Gazette. This publication gives others the opportunity to oppose the registration if they believe it infringes on their rights. If there are no objections, your trademark will be registered.
I created a detailed guide on each step of the USPTO trademark process, visit here.
Once my trademark is registered, what’s next?
After successfully registering your trademark, the next steps are crucial for maintaining and leveraging your trademark rights. Firstly, begin using the registered trademark symbol (®) with your mark. This symbol notifies others of your registration and enhances the legal protections of your trademark.
Secondly, actively monitor the market for any unauthorized use of your trademark. Vigilance is key to enforcing your rights and preventing infringement. If you spot potential violations, consider legal action or contact the infringing parties to cease their unauthorized use.
Lastly, maintain your trademark registration with the USPTO. This involves filing periodic declarations of use and renewals to keep your trademark active. Ensure you meet all deadlines to avoid cancellation of your trademark rights.
For guidance on when and how to use trademark symbols correctly, visit Innovent Law’s detailed page on trademark symbols.
I’ve seen successful brands expand from one store to locations across all 50 states. Their growth often begins with protecting trademarks and intellectual property. Taking these steps can safeguard your brand as you scale.
