Trademark Basics
Why you Should File Sooner Rather Than Later
Properly registering and using your business’s intellectual property is important for the protection of your brand. Intellectual property (called “IP” for short) is a work or invention that is the result of creativity. There are 3 main areas of intellectual property protection: 1) copyrights, 2) patents, and 3) trademarks. Here we will discuss in more detail what a trademark is and why it’s important for your brand protection.
The Importance of Trademarks for Business Branding
Trademarks generally apply to the branding of your business – your business’s name, logos, slogans, etc. These are the public-facing components of your business that communicate to your customers what, where, and how you perform your services and/or sell your goods. You want to create a unique brand so that customers can easily recognize your business and know what it is you can do for them. You can trademark words alone (like your business name and slogan); you can also trademark specific logos and designs. You can even trademark particular color usage; sometimes this is an advantageous strategy and sometimes it’s better to trademark logos in black and white.
Risks of Not Trademarking Your Brand
Trademarking the various branding components of your business with the United States Patent and Trademark Office (the “USPTO”) puts your information in a national trademark database that showcases to the public 1) the industry in which your business operates, 2) the particular services or goods that your company provides, and 3) the date on which you started operating in that field. Having a trademark is a way of communicating to others that your branding details are already claimed for your particular industry; this is beneficial to you and others so that they can create and choose unique branding for their businesses that does not violate the trademark protections that you already have in place. Without trademark protections, it would be very easy for someone to impersonate your business and your work.
Impersonation, or wrongful copying, can be troublesome for a variety of reasons. As a young company, you don’t usually have the extra time, energy, and finances (not to mention it’s not really practical) to monitor all angles to ensure that someone isn’t (purposefully or accidentally) using your business name, the same or similar logo, or the same or similar slogan to sell a similar good or perform a similar service. You are probably spending your time and capital at this point trying to get a foothold in the industry and build a customer base. As you become more established in your field and build a positive reputation, customers start to recognize your business because of your branding. Now imagine someone uses your same business name and logo to sell the same products, but at a much lower quality. The public thinks this is your business and that your company has gone downhill, so now you start to lose customers to your competitors and an illegal copycat has profited from years of YOUR hard work and dedication. These are just a couple of the main reasons why companies should trademark their business name, logos, and slogans.
Overcoming the Challenges of Trademark Registration
It's natural at first to feel a bit overwhelmed by the idea of trademarking your business’s branding or to feel that your business is too young to need a trademark. However, trademark application and registration with the USPTO is actually fairly straightforward, especially if you work with an attorney that is experienced in the field.
Costs and Benefits of Trademark Registration
Additionally, the time and cost to register your trademarks is almost certainly going to be much less than the time and money it will take if you need to later defend your trademark or fight off illegal copycats. The USPTO charges $250-350 per trademark application per class. There are only 43 trademark classes, so most companies register for 1-3 classes (often just 1 class), depending on the types of goods and services offered. It’s also important to keep in mind that trademark registration is based off a “first in time” concept. The first business to register or use a particular mark is considered the owner of that mark so the sooner you file the trademark application, the quicker that nationwide protection is put in place and the sooner the public is put on notice that your brand is taken.
Why USPTO Registration Offers the Strongest Protection
While trademark registration with the USPTO is not strictly required for brand protection, it does provide the broadest and most distinct protection in the United States. Using a particular name or logo for your business (without a trademark) provides some basic protections – others in your local area are restricted from using the same or similar branding for the same or similar type of business. However, without registration with the USPTO, you do not have protection against someone using your same name and logo in another part of the country and you could run into issues determining which of the two companies was the first to use the disputed mark.
The Potential Consequences of Trademark Disputes
If you run into a trademark dispute issue, you could face lengthy, time-consuming, and very expensive attorneys’ fees and litigation costs to get the infringing business to stop impersonating your company. You could face issues trying to prove when you first started using your various marks (that you were “first in time” compared to the other company), the geographic reach of your business, and the types of services or goods you offer to the public. Although these issues may sound pretty straightforward in this article, keep in mind that the competing company is likely going to put up a fight to maintain their rights to use the branding; they also may have spent many years and a lot of money growing the same or similar brand with no knowledge that your business already existed. Imagine how passionate and personal you may feel toward your brand and realize that this other company may feel the same way.
You can significantly reduce the likelihood of future disputes and litigation concerning your IP by trademarking your brand early and accurately. The Law Office of Troy M. Ortiz has knowledgeable and experienced attorneys on staff who can help you navigate the process. We are happy to explain the process, answer your questions, prepare and file your application materials, and be your first line of defense if the USPTO follows up your application with questions and/or concerns about your marks. USPTO trademark application fees are nonrefundable, so we highly recommend working with an attorney who knows how to properly check for potential conflicting marks, who takes the time to learn about your business and works with you one-on-one to completely and accurately describe your business for the application, who takes the care and precision needed to gather the appropriate supporting documentation to show proof of the mark in use, and who has your best interests in mind. Our attorneys do just that and they enjoy working with creative people like you to help protect your name, your business, your reputation, and your livelihood.
Please contact our office today if you have questions and would like to speak with an attorney about trademarking your brand. We can’t wait to meet you!
This article is intended for informational purposes only and does not constitute legal advice. Always consult with a licensed attorney before making any decisions related to real estate financing or transactions.