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If you run a business in England, you may wonder what a trade mark is and how it might benefit you. This article will why trade marks are useful, as well as relevant legal considerations.
What is a Trade Mark?
A trade mark is any distinguishing feature you use that is connected to some aspect of your brand. It can take many forms, including a symbol, logo, phrase, colour palette, or sound.
Why Trade Marks Are Useful: Advertising and Marketing
Businesses consistently use trade marks for advertising and marketing their products and services. You will regularly see trade marks on television, in newspapers and advertised on billboards. This is because trade marks are commercial tools to enhance a brand’s identity and market reputation.
For example, a popular slogan played on television or radio will reach consumers, who in turn will associate the slogan with the brand. This feature builds legitimacy for the brand and encourages consumers to purchase the product or service from your business rather than a competitor.
Logos are another example of how a trade mark can be used not only in an advertising campaign but also on actual products. By using a trade mark consistently across products and advertising, you establish a uniform branding, which customers tend to find more recognisable.
As you can therefore see, trade marks can be invaluable tools for building and growing your business presence and persuading consumers to buy from you.
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Why Trade Marks Are Useful: Establishing Your Brand Ethos
Trade marks have not only the power to identify the origin of a product or service. Businesses also use them to indicate to consumers the values behind the brand.
One example is the fair trade logo, which is often seen on food packaging. When consumers see this logo, they immediately identify the product with fairly produced and fairly traded products often from lower-income countries.
As a trade mark owner, you can use your mark to signify any number of different meanings including:
- your customer services standards;
- your ethical values;
- your place in the market;
- the pricing of your products or services;
- your efficiency as a company; and
- any campaigns you have been a part of.
Why Trade Marks Are Useful: Potential Revenue from Trade Marks
Trade marks can be extremely valuable assets for the business. It is important to recognise their earning potential, particularly if your business has an established brand. One example of how to earn money from trade marks is from licensing. This involves drafting a contract with another business that permits it to use your trade mark in exchange for payment. You still own the trade mark itself, but the license grants the other party the right to use the trade mark for a certain period of time under certain conditions.
Another major source of income from trade marks can arise when you sell your business. This is because accounting principles treat trade marks as a form of property. Therefore, you can put a price on the trade mark that informs the purchase price of the business itself. For example, when Topshop was purchased by ASOS in the UK, the deal was valued at £330 million, which was widely reported to be strongly influenced by the trade marks Topshop had registered.
Why Trade Marks Are Useful: Protection From Competitors
Trade marks are capable of registration with the Intellectual Property Office (IPO). Once you have registered the mark with the IPO, you will gain exclusive rights over your registered trade mark according to the terms of the registration. Your mark will appear on the trade mark register for 10 years and for that period you will have the exclusive right to use it for your business. Registration makes legal action against competitors more straightforward as registration awards your business trade mark protection immediately.
Finally, you should note that you do not have to register your trade mark protect your rights. Trade marks can exist as unregistered trade marks, but registering your trade mark better protects your claim over the mark because the law makes it more difficult for you to establish a right over unregistered trade marks.
Key Takeaways
Trade marks are often used successfully in advertising and marketing strategies by increasing the visibility of a brand in an easily digestible format such as a logo or slogan. This in turn helps businesses establish their reputation with consumers. Trade marks are also useful for portraying a message that you want associated with your business. You can also license your trade mark to other businesses, which can make them a strong source of revenue.
If you need help deciding whether to file for a registered trade mark for your business brand, LegalVision’s experienced intellectual property lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Trade marks are important tools to use in order to grow your consumer base and also build a strong reputation for your brand. Further, they grant you exclusivity in your areas of industry and therefore provide an important level of protection for your intellectual property.
Trade marks are crucial to forming a strong brand identity as they will not only serve as a strong marketing tool but will also deter other competitors from trying to copy or imitate your products or services once you have registered with the Intellectual Property Office.
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