Advantages of Trademark Registration

A trademark is a brand name, logo or symbol associated with the goods or services of a company or individual. A trademark can contain words, letters, numerals, symbols or a combination of these. It identifies and distinguishes a company’s products or services from its competitors. This article provides the advantages of trademark registration.

Why is Trademark Registration Important?

In India, trademark registration is regulated by the Trade Marks Act, 1999. The registration of a trademark is not compulsory in India. It is voluntary under the Act. However, there are many benefits of trademark registration in India. Registering a trademark for a company that wants its goods or services to stand out from the rest is essential. Trademarks are the basis for creating a company’s brand and trust with customers, enabling them to enhance goodwill.

Trademark registration secures the trademark and grants the benefits of trademark protection. It assures the customers that the goods or services of the business are unique in the market. It grants protection against goods or services containing a similar trademark causing confusion in the minds of the public. When a trademark is registered, any unauthorised usage of the trademark for similar goods or services results in infringement.

The advantages and disadvantages of trademark registration are provided below.

Advantages Of Trademark Registration

Exclusive Usage Rights

One of the significant benefits of trademark registration is that it grants exclusive rights over the trademark. The trademark owner can apply the same for all the products or goods falling under the classes for which it is registered. The trademark registration provides the exclusive right to take legal action against third parties who use a similar or identical mark without authorised permission for their products.

Builds Goodwill

The other benefits of trademark registration is that it helps to establish goodwill and trust in a brand. The goodwill of the brand increases when it becomes popular amongst customers. It helps to create regular loyal customers who recognise products or goods from its brand and opt for the same brand. A trademark having a good reputation and goodwill can also help obtain funds from financial institutions.

Differentiates Products and Services

A trademark aims to distinguish goods and services from its competitors and create a brand identity. Trademark registration makes it easy to commercialise or market a product or service with a unique brand identity in line with the market requirements. The brand identity communicates the company’s quality, vision and several other features of the products and establishes its uniqueness amongst customers.

Ensures Product Quality

A trademark registration ensures the quality of the product or goods. Customers link the product’s quality with the brand. It creates an image of the quality of a particular brand in the market which helps to attract new customers. Thus, customers buy goods with a popular trademark in the market.

Helps in the Creation of an Asset

Trademark is an intellectual property of a company. Thus, a trademark is the asset of the company. A registered trademark provides its owner with the right to sell, assign, franchise or commercially use the trademark, providing a potential source of income.

Usage of Ⓡ Symbol

When the trademark is registered, its owner can use the Ⓡ symbol on the logo. The Ⓡ symbol signifies to the third parties that the trademark is registered and cannot be used by them without authorised permission. It ensures that customers can be sure that the products or goods of the brand are original products of high quality.

Protection Against Infringement

When third parties use a registered trademark for their products or goods without the owner’s permission, it amounts to infringement. It means that if a third party violates the registered trademark, the trademark owner has a right to take legal action against them for infringement. In a case of infringement, the court can order to stop the third party from using the registered trademark and even give back the profits made by using such a trademark to the registered owner.

Protection For Ten Years

A trademark registration is valid for ten years. Once it is registered, it cannot be used in an unauthorised way by a third party for ten years. Thus, it helps to protect the brand for ten years in a cost-effective manner. After ten years, the owner should apply for renewal of the trademark for ten more years.

Global Trademark Registration

When a trademark is registered in India, it does not grant global registration. However, the Indian trademark registration can be used as a base for an international trademark application. When the trademark obtains international registration, i.e. registration in a foreign country, a third party cannot use the trademark in that foreign country and establishes its uniqueness and distinctiveness in the global market.

Attract Customers

Customers generally choose popular trademarked products or goods. Popular trademarked products or goods have the customers’ trust regarding the quality and source. It creates a positive image of the company. Thus, many customers are attracted, which helps in the growth of the business.

Disadvantages Of Trademark Registration

No Alteration of Trademark Classes

One disadvantage of trademark registration is that once it is registered under one class, it cannot be applied for goods belonging to other classes of the same company. More than one trademark class can be chosen while filing the registration application. However, the trademark class cannot be altered once the application is filed. If the company starts selling goods under another trademark class, it must apply again and get the trademark registration for that class of goods. Thus, a company must choose the trademark classes relevant to the goods and services when applying for registration.

Trademark Opposition

After filing the trademark registration application, it will be published in the Trademark Journal. Anyone can raise opposition to registration when it is published in the trademark journal. When the opposition is filed, the Registrar of Trademarks will go through the opposition, counterstatement, and evidence and conduct a hearing. It can only be registered when the Registrar of Trademarks decides in favour of registering the trademark after conducting the opposition proceedings. The trademark opposition process is time-consuming, and the owner may have to pay the fees of a legal counsel for defending the trademark registration.

Renewal Every Ten Years

Trademark registration is valid for ten years and requires renewal after every ten years. At the time of renewal, the renewal fees need to be paid. Non-payment of the renewal fees at the time of renewal, i.e. every ten years, can result in the removal of the trademark from the Trademarks Register.

Limited Protection

When it comes to protecting products or services, a trademark is the weakest property rights among copyright and patent protection. Trademarks do not always protect the products. It protects only the marketing concepts. Therefore, trademark registration grants limited protection compared to other property rights protection.

Descriptive Trademarks Cannot be Registered

A trademark owner cannot choose a descriptive trademark. They must create a unique trademark for their products and services. Descriptive and generic trademarks do not qualify for trademark registration.

The benefits of trademarks outweigh their disadvantages. A trademark helps in the growth of the business and in gaining more customers. Thus, it is better to register it to prevent its unauthorised usage by third parties.