Understanding Patents and Trademarks and Why is it Important For Your Business
It is crucial to associate a startup with a logo and to trademark a company name in the early stages of business. Understanding more about trademark filing and patent services should be of highest priority since this will help you protect your business. We have created this blog to help you understand the intricacies of copyrights, logo registrations, and their advantages.
So what are trademarks? Trademarks are logos, designs, and phrases which are termed exclusive for companies who register them. We come across trademarks all the time in our daily lives. They are the actual brands we are referring to. These trademarks are powerful agents for influencing the customers and sway customers towards certain products. It is vital for businesses to understand the need for trademarks and the potential boost in revenue that ensues with quality trademarks.
Why Trademarks are Important:
Let’s dive directly into the most important aspects of trademarks. Trademarks are effective tools for conveying messages about the company, the reputation, product, and services to the customers. There is no better way to inform the customers about your product in the most minimalistic way other than trademarks. Consumers indirectly connect the dots of all the above-mentioned aspects with a single glimpse of the trademark. This is the sole reason why billion dollar companies retain their logos for ages.
- Customers can easily track you
You enter an apparel showroom and pick out two different variants of t-shirts. You feel the cloth, and both feel equally good, but then you take a look at the tag and realize that one has the Swoosh sign of Nike whereas the other does not have one. What is the thought process? You are definitely inclined to purchase the Nike t-shirt. Why? It is your consciousness coaxing you to appreciate the brand and respect it. That is the cruel impact a simple design can have on the purchasing power of the customer. This is another reason why you need to create a strong recognition for your brand.
- Utilize the Internet in your Favour
It is a proven fact that most of the customers search for brand names rather than distinct searches. Creating a trusted trademark will have more people search for your brand name while searching for products which will give your landing page more traffic. Social media platforms can also trigger more traffic when customers search for your brand. Create a compelling and intuitive trademark that embeds in the minds of your customers.
- Expansion Opportunities
The trademark you own symbolizes the reputation of your company. The brand recognition and value grows if your business grows and depreciates if your business suffers. These simple designs will allow you expansion into other diverse fields. Acquisition can work either way for you, whether you acquire companies and associate your brand with them or whether bigger companies acquire you. The underlying point is that there is an easy transition between businesses depending on the recognition of your trademark.
Like mentioned in the first point, trademarks create an image in the minds of the people associated with the brand which includes employees and customers. A good brand will create a demand for employment opportunities which ushers in quality prospects and has a higher retention of employees.
- Cost of Trademarks
Look at the above-mentioned advantages and weigh the cost of the patent against it. Continuation of a trademark needs you to pay a few thousand rupees every five years after registering your brand at the Trademark Registry of India. Learn more about the process here.
Publishing trademarks needs the manufacturer to show evidence that the product is being used regularly. This proof needs to be shown between 5-6 years of trademark registration, and then after 5 more years, and finally after 10 years. Noncompliance to this proof renders your trademark useless since it loses its trademark authority. Issuing trademarks are also considered the weakest type of intellectual property ownership since it protects brand logos, designs, and phrases but not the product itself. Patents are necessary to help you protect your product. Take a look at some of the other reasons why you need to get a trademark for your product.
Patents are similar to trademarks; they protect the inventions of the company from infringement and replication. This gives sole permission of a specified product if the company manufacturing it has patented it. This implies that other competitors cannot use this patented product unless they have purchased the product or else they have leased it from the patented manufacturer. Ideas cannot be patented and you need to create a physical product that solves a unique problem in order to patent it. The examples of patents are machinery, composition of matter, manufacturing, and processes involved in manufacturing.
Let us take a look at the importance of patents for companies.
Issuing patents for your products allows you exclusivity to manufacturing your trademark product for a period of 20 years. Exploit this invention for the next 20 years to its complete potential. By having these exclusive rights, you can dominate the market and create a monopoly around your business. This allows SME’s to increase their position in the market through this dominance. The amount of time and science spent behind creating the innovation will finally pay off under the umbrella of patents. Patents allow you the opportunity to commercialize your product which guarantees higher ROI.
- Sell or License
Another thought might strike you to sell or lease these inventions. With the assistance of patents, you can license it to other enterprises which can create a source of income based on the contract you sign.
- Positive Image
Investors, equity shareholders, and business partners consider patents as the demonstration of the level of expertise and specialization your company adds to your portfolio. This positive image allows you to raise funds or find partners to increase the value of the product.
Learn more about choosing a patent service provider here.
A minor limitation of patenting your product is that you are disclosing a certain part of your product information to your competitors. If the product invention is has been a secret till date, then you should patent it only if you are sure of the manufacturing process schedule. Patenting your product a long time before manufacturing can leak sufficient ideas to other competitors who can replicate and start production immediately, which can push you out of the business.
Protecting your product and brand is the highest priority when you are starting your business. Negligence on this part could steal your dream away from you. The capitalist and humongous economy will feed off your product if you do not secure it through patents and trademarks. Read more about lawsuits filed against some small businesses from IPR here. Trademarks also act as a great marketing option for your product. Choose from the best services in the country to register your trademark.
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