What does trademark registration provide?
It gives you legal protection. No one will have the right to use the trademark without your consent. If someone sells goods under your trademark without your consent, you will be able to officially express your claims to them. There are often cases when companies receive significant monetary compensation for using a trademark - amounts reach 5 million rubles. Also, the amount of compensation can be calculated based on the double value of the goods on which the trademark was illegally placed, or the double value of the right to use the trademark.
In addition, a recognizable and trusted trademark becomes an asset.
There are often cases when an entrepreneur wants to sell a business. Then the presence of a recognizable trademark increases its value. A trademark familiar to the target audience is one of the manifestations of the brand. And the brand is deservedly considered an intangible asset. After all, it has earned a certain loyalty of buyers, the likelihood of purchasing goods with the corresponding marking increases.
A trademark can be leased. Without a registered trademark, it is impossible to register a franchise, since franchising implies not only the transfer of a business model, but also the delegation of the right to use a trademark. And you cannot transfer the right to something that does not legally belong to you.
In addition, the very fact of registering a trademark adds respectability to the business. It becomes obvious that this is not a fly-by-night company. Accordingly, trust in the company increases.
TM registration provides legal protection and creates a business asset.
Why is the absence of a registered TM dangerous?
Many entrepreneurs do not bother with timely registration of a trademark, and then clutch their heads.
The first common situation is a kind of raider takeover of a domain.
Let's say an entrepreneur registered a domain several years ago, invests serious money in SEO promotion of the site and advertising . Over time, recognition is achieved. The name of the company, which is part whatsapp number usa of the brand, turns into a valuable asset in itself. And then crooks appear who take the domain from its rightful owner through the courts!
How does this happen? It's very simple - they register a trademark with the same name. And then they go to court to get the corresponding domain transferred to them.
You can't count on a humane court. No one cares that the domain was registered 10 years earlier and millions of rubles were invested in the "promotion" of this name. In countries with developed, entrenched capitalism, this happens less often, and in our country these nuances have not yet been fully resolved.
The second situation is when people using your trademark are damaging your company's reputation. You can't make any claims against them, since the trademark doesn't belong to you. They understand this and try to get the most out of using your brand. Unlike you, they have no motivation to value the name and monitor the quality of the products for the sake of user trust in the long term. They will try to sell as many products or services as possible, "while they can get it." And then, when your business reputation is damaged and sales fall, they will find another "donor."
And finally, you can't be a player in serious business without a registered trademark. When it comes to solid clients, contracts for large sums, a comprehensive check of counterparties begins. Some particularly thoughtful business partners are very interested in whether reputational risks are significant for you. If you don't even have a registered trademark, they simply won't take you seriously, won't accept you into their "gentlemen's club".
Therefore, if you intend to develop your brand in the long term, investing time and effort into it, be sure to register a trademark!