Importance of Registering Your Business Trademarks

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Why is it important to register your business trademarks? Imagine this. You have poured blood, sweat, tears, and thousands of dollars into developing your company, marketing your brand and promoting your business. Your company finally has real traction—solid returning clients, a recognizable brand standing out from the competition, and firm foundation to grow more than ever. Now that your business is established, you decide now is a good time to trademark your business name and logo.

You talk to an attorney who runs a search. The search shows that there are other businesses who have a registered a name very similar to yours and they began using their name before you did. The attorney advises that you have two options. The first option is to continue to use the business name. This option is risky because the other business may send you a letter demanding you change your business name or proceed straight to litigation. If the matter does proceed to litigation, the court will likely hold that you infringed on the other business’ trademark rights. The other option is to lose all the money you have already spent and spend more to rebrand your business under a new name potentially confusing or even losing clients.

Neither of these options is ideal. But before you can decide how to proceed, you receive a demand letter. It’s from a competing company in the same area alleging that your business name is too similar to their business name and that consumers are being confused. They demand that you change your business name, or they will sue you for damages for trademark infringement. Your attorney confirms that their business name is similar, that their business trademark is registered, and that they began using that trademark before you. Eventually, after months of negotiating and legal bills, you finally reach a settlement where you agree to rebrand.

Unfortunately, this is a very real example of events that have occurred to clients and that’s one of the reasons why it is so important for businesses, especially small or new businesses with limited funds, to register their trademarks. Here are a few other reasons why you should register your trademark to protect your business:

  1. Your trademark will make your business brand distinguishable from other competitors.
  2. Stand out and attract consumers with specific colors, and unique logos and slogans.
  3. Use your brand to build a reputation and image which aligns with your consumers.
  4. Protect your business from legal issues such as demand letters, lawsuits, and potential damages from infringing on someone else’s mark which could include legal fees, fines and profits gained from use of the trademark.
  5. Enforce your trademark rights against confusingly similar marks, and report counterfeits.
  6. Create value and revenue by licensing the use of your trademark, creating a franchise, or selling the trademark as part of the sale of your business.
  7. Establish your record of first use. The USPTO will reject applications for filers with trademarks that would be confusingly similar to your trademark.
  8. Put others on notice of your trademark by using the ® symbol.
  9. Your federal registration can be used to expand your trademark in other countries for foreign trademark filing.
  10. Registered marks have more protection than unregistered marks and lessens the burden of proof in a legal dispute such as presumed ownership.

Although the process of filing for registration can be daunting and sometimes costly, it is preferable to spend some money now and avoid unnecessary stress and legal fees in the future which can cost your company much more in the long run. Register your business trademark today and know that your trademark has all the protections available to minimize your risk and maximize your business impact.

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