Understanding the Importance of Trademark Registration in India

History of Trademarks age back to ancient times. When tradesmen distinctly branded their goods or services. In 1266, the British Parliament adopted the first Legislative Act for Trademarks. As a result of which, it became mandatory for bakers to put unique marks on their bread loaves. Today, the importance of Trademark Registration in India has increased to such an extent that these services are available online at affordable rates. Trademark is a very valuable Intellectual Property for today’s market. Hence, the importance of a trademark cannot be understated. We’re here to show you exactly why trademark registration is so important. 

What is a trademark registration?

Product names, business name, logo, brand slogan, or even sound and shapes that give your brand a unique identity ideally fits the list of what can be a trademark in India. The importance of trademark registration is not even a point of discussion anymore. Hence,business owners usually learn how to register a brand name in India. 

What is the importance of a trademark?

After getting the registration certificate, the importance of a trademark multiplies. However, even without the registration, importance of trademark cannot be denied. So, let’s see the different reasons why the trademark is important. 

1. Create an asset for your business

Trademark provides you an exclusive right to use the unique mark for your business activity. Globally, business valuations have evolved to be beyond physical assets possessed by the companies. Companies like Uber, Swiggy, and Oyo are lean business models. As a result of which, millions of customers trust and value these brands. The golden arc of McDonalds or bitten apple logo of Apple Inc. shows the power of branding and recognition. Due to which, the value of these brands is now in billions.

Also See: Documents required for trademark registration

2. Not just a cost, it can be a revenue system

To get an actual understanding of why trademark registration is important, you need to understand its use as a revenue system.  We know that a registered mark grants you an exclusive usage right. Further, it also allows you to unlock the potential of your brand by licensing it to others. So, many businesses opt for licensing the usage of their brand names to create additional revenue streams or enter new markets with a collaborative approach. This definitely increases the importance of trademark for them. For example, in the year 2020 a popular fashion designer Calvin Klein entered into a licensing agreement with Mark Fisher Ltd. for the design and production of Footwear.

Also Read: Trademark Jurisdiction in India

3. Never let your customers be confused, build a unique identity

It takes hard work to build a brand. So the importance of trademark lies in protecting that brand identity. Many businesses end up spending a significant amount in marketing and outreach – just to popularize their brand name. Trademark gives you a proprietary right to use the mark registered under the class. Think of a situation where multiple dairy product vendors start naming their business as “Amul”, and customers are not able to differentiate between the brands. You wish that your business would scale that large and would want to make sure your brand name is protected by law. Wouldn’t you? You can also check out the various relative grounds for refusal of trademark registration. 

4. Legal protection against infringement

Under the Trademark Act, a registered trademark becomes a legally protected asset. Hence, empowering you to challenge the usage of a similar or confusing brand name, and stop the infringers from using the particular mark. In a landmark Supreme Court Judgement, when prior use of brand “Malikchand” was proved by M S Food Products (a tobacco products trader) it forced Dhariwal Industries (owners of popular brand Manikchand) to restrain from using their brand name. From this instance, I hope you can understand the importance of Trademark Registration.

Also Read: What is trademark infringement and its remedies? 

5. Claim perpetual ownership

Unlike other Intellectual Properties such as Patent and Copyright, your trademark can be owned for as long as you wish. Thus, We can say that a Trademark in India is owned forever, subject to a trademark renewal process, due every 10 years.

6. Bonus: claim IP rights in other countries

If the above five are not good enough to let you know of the importance of Trademark Registration, I thought of adding one more benefit. Trademark rights are geography-specific, and one needs to apply for protection in all the countries separately. World Intellectual Property Organization (WIPO) allows registering Trademarks in 124 participating countries through the Madrid System. Though, as a prerequisite, the applicant needs to have a Trademark Application filed in the home country.

Also Read: How to trademark a slogan in India?

Expert tips on why trademark registration is important

The above mentioned points usually explain to business owners why trademark registration is important for them. However, here are additional expert tips to show the importance of trademark registration. We hope that with these tips, it becomes clear to all the business owners why trademark registration is important and why it will be even more important in the future: 

Exclusive use

Whether your mark is a conventional or unconventional trademark, the importance of trademark registration is that it will give you the exclusive right to use and promote the mark with respect to your goods and services. 

Also Read: Trademark Search Process in India

Enforceable rights

The rights that a person gains with trademark registration are enforceable. This means that in case of an infringement, the rights of the trademark owner are completely enforceable. Meaning, they can start the suits for infringement, easily. Consequently proving the importance of trademark registration. 

Also Read: What are the characteristics of trademark?

Expansion of brand

Zomato started in 2008. However, the amount of popularity this brand has today is unmatched. They’ve extensively used their brand name in the promotional campaigns and have created a super buzz over their brand. Hence, the importance of a trademark lies in helping the brand expand and grow to its true potential. 

Presumption of validity

With a government approved certificate, you will definitely be sure that your mark is unique when it does not fall under the trademark objection under section 9. Hence, it gives a legal presumption of validity to all the stakeholders. 

Conclusion

Lastly, I’d state that it is important to nurture and protect your brand when you’ve worked so hard to build it. Hence, Trademark registration is a small expense that will get you peace of mind and help in popularizing your brand. This will also help you in eliminating the fear of brand name being used without your permission. Assisted service from LegalWiz.in experts is always a click away – simple, affordable, and dependable.