Why should companies invest in trademark protection right from the start? At what stage should they consult an IP expert? These are crucial questions to consider when planning trademark protection, writes our legal trainee Aida Salomaa in her blog.
It is important to secure a trademark early in the life of a company to ensure that the brand value built around the name of a product or service, or any other commercial identifier, exclusively benefits the company. Trademark protection safeguards the brand, which in turn increases the value of the product or service.
There may be many competing products on the market, where small differences and branding play a significant role in the purchasing decisions of consumers, investors, or competing companies. Registering a trademark boosts consumer trust, enhances the value of the product or service, and can increase customer loyalty and sales. It also communicates the company’s confidence in its own product.
A trademark expert will help you make full use of the possibilities of protection
When it comes to trademark protection and brand rights, it is advisable to consult an IP professional early on to avoid mistakes and maximize the benefits of the trademark. A trademark serves as a distinguishing identifier that consumers associate with specific products and services. Registering a trademark grants the company legal ownership of the product or service name and/or commercial identifier, e.g., logo. Consulting an IP professional helps to fully leverage the possibilities of trademark protection and obtain appropriately tailored protection.
One of the key advantages of trademark protection is its permanence; the protection can be perpetual if the trademark is renewed on time. Companies have the right to take legal action if their brand rights are infringed. Protecting a trademark prevents others from using a similar mark that could cause confusion in the market. To ensure this protection, it is advisable for a company to seek assistance from IP professionals, so that monitoring its own brand rights is not overlooked.
Exclusive rights to a trademark improve competitiveness in the market
Trademark protection can significantly increase a company's value. A product or service is more competitive in the market when the trademark is registered, and the company has exclusive rights to use it. Securing a trademark in the early stages of a company is a wise investment for the future. A trademark can be a valuable intangible asset, the value of which grows with the company’s success.
Registering a trademark is also prudent when considering resale; for some companies, trademark registration may be a prerequisite for doing business. A trademark can also be commercially exploited in various ways, such as through licensing or franchising arrangements. The value of a registered trademark has no upper limit, as the value of intellectual property can increase significantly.
It’s wise to secure a brand name early in the company’s journey
For startups, timely trademark protection is extremely important. If a company has international growth ambitions, it’s wise to secure the brand early on. Sometimes a brand might be developed without sufficient preliminary research, and only later it is discovered that the trademark cannot be protected through registration or even used as a brand name for products or services in the target international markets. This can lead to significant additional costs, and changing a brand name that has already gained recognition means extra branding work. With the help of an IP professional, it can also be ensured that the planned trademarks are available, protectable, and do not infringe on the rights of others.
By consulting an IP professional early on, a company will know how and where to protect its trademarks through registration, how to use trademarks properly, and whether the planned trademark is available or protectable. This approach also helps the company avoid infringing on others' brand rights. Registering a trademark gives the company the right and a strong foundation to take legal action against potential infringements. It can prevent other companies or individuals from trying to exploit the company's reputation or the popularity of its products without permission.
Protecting a trademark is an essential part of a company's brand strategy. This protection ensures that the company's brand value and competitiveness are safeguarded and that the resources invested in brand marketing efforts benefit the company. Properly timed and executed trademark protection is an investment that pays off many times over as the company grows and succeeds.
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