Trademark registrations have become more important for any business entity after the adoption of the Company Act of 2013. More than tens of thousands of “marks” are filed each year as a result of increased knowledge regarding trademarks and intellectual property. According to the new Company Act of 2013, a business cannot have a name that is much similar to a registered trademark. As a result, trademark registration is vital for starting a business. We have discussed the benefits of trademark registration for a company in India below.
Creation of an asset –A trademark is a business’s intangible asset that brings value to the company. It distinguishes the goods or services from the market’s current competitors. Trademarks are similar to brands in that they draw customers, stand out, and are distinguishable from the competition. Your company’s trademark functions as a marketing tool. A trademark is a symbol of a company’s dedication to its identity, goodwill, and integrity that aids consumers in making purchasing decisions. The value of an asset increases with time, just like in the real estate market. Similarly, the value of a trademark rises dramatically as a company grows. Trademarks, like tangible assets, can be bought, sold, or used as collateral to receive a loan from a bank or financial institution.
1. Legal protection
DailyHawker says, Trademarks are considered intellectual property once they are registered, and they are thus secured from infringement. Trademark registration also grants an official entitlement to the use of the trademark concerning the “Class” of goods and services it embodies. The symbol “TM” can be displayed with your goods and services after you have registered a trademark application. Only once your trademark has been registered can you use the symbol “R.” In addition, the ® sign can only be used for the goods and/or services stated in the registration certificate. In the case of illegal use of a registered trademark, you can obtain infringement redress in the country’s authorized courts.
2. Brand recognition
Customers identify the efficiency, quality, and capabilities of a product with the company that makes it. They use the logo, a registered trademark, to distinguish the product in general. People will be able to recognise your products and services if you register a trademark. It also contributes to the brand’s goodwill. As a result, your brand becomes well-known and has a long-term market value. Brand recognition attracts new customers while keeping existing ones.
3. Differentiation of products
The goods or services that a trademark registration represents are unique. You’ll be able to tell your goods from those of your competitors if you have a trademark. The ability to differentiate your products is aided by trademark registration, relevant to goods or services. Customers link the quality of a product with the brand name, which helps to develop the brand’s image in the industry and acquire new customers.
4. Can be enforced against Company Name
The company name cannot be comparable to or similar to a registered trademark, according to the Companies Act of 2013. This clause can be used to prevent the company from using names in the future. As a result, a company cannot be enrolled under the same name as a trademark once it has been registered. It is also critical for existing business owners to register a trademark in their company name to avoid future issues.
5. Business valuation and goodwill
Trademarks that are filed and associated with your goods and services increase the total value, goodwill, and net worth of your company in the market. Trademarks aid in the expansion of your company. They aid in the retention of devoted customers and the protection of your company’s reputation. Trademark registration aids in the communication of a brand’s unique traits, qualities, and vision, and the expansion of the business.
6. Trademark recognition
The trademark will be effective for the next ten years after it is registered. Between these ten years, there are no legal obligations, charges, or other statutory requirements to retain trademarks. Furthermore, just like a passport, a trademark certificate can be renewed shortly before it expires, and the proprietor can protect his or her trademark from third parties. You will need authorization or trademark registration in the respective nations if you want to use the trademark outside of India or establish your business outside of India. In such circumstances, your Indian trademark registration and business serve as a foundation for obtaining registrations in other countries.
7. Protects investment in Advertising & Branding
In today’s highly competitive markets, any company must invest in advertising and branding. Businesses invest in various advertising channels to promote their product among customers, including the internet, newspaper, radio, and television. If a brand isn’t protected by a trademark, anybody can claim it. As a result, filing a trademark application for the trademarks ahead of the start of advertising campaigns is crucial.