Trademark is a mark that represents the company, organization, logo or brand. It is inclusive of words, phrases, symbols, designs or labels. It helps to distinguish the product or service from others goods and also helps the consumers to identify and buy the products based on such a trademark.
This concept was developed as early as in 1800s where the need for such a symbol arose to protect the identity of the product and to prevent their goods from being imitated, as it was a common practice to copy the design and structure of the good, make minor changes to it and sell the same without this being questioned.
India also came up with the Trademark Act of 1999 to make the process of trademark registration easier and to prevent the products from being imitated and sold in the market. The advantages of having a trademark registered for a company are as follows:
- Protection – Having a trademark for the organization helps it to get legal protection which gives the organization a right to possess a trademark. It also prohibits any other person or organization from using the trademark without prior permission and if it is used in such a manner, the legal owner of the trademark can sue and demand compensation for violation of their rights.
- Marketing – The trademark helps a company to have a brand name secured for them through such a symbol. This symbol allows the consumers to associate the product or service to be associated with the company and increases reliability. Once a company has established a name in the market, the trademark allows the customers to rely on this and increases sale. The trademark also establishes a quality name which is used to increase the market base and have an edge over the competition present in the market.
- Intangible asset – Another benefit of registering a trademark is that it leads to the creation of an intangible asset that assists in the dealing with the third parties. It allows selling or contracting and even franchising the product with third parties. It provides a basis for the organization to grow and expand its business.
- Global registration – If a trademark is registered in the parent company, only then can the company avail the benefit of having a trademark registered in any other nation. Therefore, if a company wishes to expand its base in the due course of time, it is essential for them to register a trademark in their country first.
- Distinct identity – The trademark for a product or service provides the company to have exclusive rights over it. It distinguishes the goods from other goods in the market which are similar in nature. For example, cars manufactured by TATA have a separate identity and can be easily distinguished from the cars made by Maruti Suzuki or Skoda, etc.
- Increased Value – A major benefit of registering a trademark is that the goods of the company witness an increase in the value of the products. An established name in the market that is associated with a particular good augments its value and thereby leads to an increase in its purchase.
- Usage – It facilitates the usage of the trademark along with the symbol of registration ‘R’ in all places. The organization has the right to protect its trademark and any infringement of such a right can be dealt with in the court of law. Also it can be used in legal proceedings to show the validity of the trademark being registered. A trademark is usually valid for 10 years.
Thus it is vital for an organization to have a registered trademark so that the product becomes known in the market and gives protection from the good being imitated. It gives a legal validity to the existence of the company and its product or service.