A trademark is any sign
that individualizes the goods or services of an enterprise and distinguish them
from the good or services of the other similar goods or services available in
the market or in simple language it is anything that helps in differentiating a
product in the ocean of similar or same category of products.
Although it is not
mandatory and is most often ignored by the entrepreneurs but it remains one of
the most important asset of any business.
Some of the important
reasons are.
An important tool for
effective communication:
It is a proven fact that an average consumer identify and remember any brand
more easily and effectively through its logo. Your mark can convey intellectual
and emotional messages about you, your company, its products or services. A
mark need not be a word to be identifiable. It can be a symbol, sign or
combination of colours etc. Like “swoosh” design of Nike is recognized
worldwide although it doesn’t have any word on it.
Trademark enables your
customer to locate you:
In this open economy the market place is crowded and consumers have too many
options for one single product or service. Trademark proves to be an efficient
tool to capture consumer’s attention and make your products and services stand
out. Consumer viewing a trademark immediately know who they are dealing with.
Often reputation of a particular trademark play a
critical role in customer’s purchasing decision.
Trademark facilitates to
effectively utilize the internet and various social media platforms: We all
very well know how important is to have an online presence in this era. Your
brand name is the first thing any customer enters into google or social media
site like Facebook, twitter to know about your products and services and basis
his decision on the published information.
Trademark is a valuable
asset: A trademark fall under
class of intangible asset and can appreciate over time. The value of any
trademark is directly co-related to the reputation of business. Trademark paves
the way for expansion from one industry to another. For example - Titan the
homegrown brand for watches has become so popular over time and they used the
same trademark to launch their eyewear range in recent past. It helped people
to attribute same trust to this newly launched brand which titan watches have
and this helped in boosting the company’s ambition for expansion. Trademarks
similar to real estate can be bought, sold, licensed or at times used as
security interest to secure a loan for your business.
Trademarks are perpetual
(i.e they never expire) :
Unlike other forms of intellectual property, trademark can exist for entire
life of your business provided you renew it after every 10 years.
Source: Quora
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