What Are The Benefits of Federal Trademark Registration?
I am Always preaching to my clients about the importance of getting federal trademark registrations. well let’s talk about the benefits of trademark registration…
As a business owner, you’ve likely invested much of your time and energy into growing your brand. For this reason, it is important to know how to protect that investment. A U.S. trademark registration provides legal protections that allow you to maintain control of your brand.
Federal Trademark Registrations Protect Against Infringement
Maintaining control of your brand is essential to your success as a business owner. One way that businesses lose control of their brand is when other companies use similar names and logos for competing products. When someone else attempts to use your trademark in the marketplace, whether intentionally or unintentionally, it creates the potential for confusion among potential customers, and this confusion could sway them away from your business. In order to remain the exclusive user of your mark, you must register your mark with the USPTO.
Once you’ve registered your trademark, you must actively monitor its use. If you find evidence of potential infringement, you should consider taking legal action. Often, a cease-and-desist letter is all that is needed to put a stop to the infringement. In some cases, however, more formal legal action must be taken. You should always consult with a trademark attorney prior to taking legal action. If you take an inappropriate enforcement action you could find counterclaims being made against you and your company.
Federal Trademark Registrations are a Valuable Asset
A registered trademark is considered an intangible asset and is a purchase that will actually increase over time. For very little upfront cost and minimal renewal fees, you will have an asset on your books that increases in value as your business grows.
Your registered trademark may benefit you in the future as well. If you are just starting out, you may not have selling your business on the top of your mind, but it may be helpful to know that a trademark can be sold with a business, just like any other asset. In fact, a registered trademark is typically a requirement of investors or people interested in purchasing a business. Buyers often place a higher value on a business with a registered trademark, as well, knowing that the protections against infringement have already been put in place.
Federal Trademark Registrations Provide Nationwide Validity
In the United States, a business or individual may have some rights to a trademark simply by using the mark in the public domain - this is what people typically refer to as a “common law trademark”. These common law rights, however, are limited. A business owner with an unregistered trademark may face challenges when seeking legal action against infringement. In addition, common law rights only apply to the small, geographic region where the business is located. This could lead to issues later on if the business looks to expand to other markets, where a similar mark is already in use.
A federally registered trademark comes with the presumption of nationwide validity. Registering your trademark with the USPTO provides valuable protection against infringement in all fifty states, not just your region. This means you are able to grow your business and expand to other areas without the fear of infringing on an existing mark. As a registered trademark owner, you will also be able to use the ® symbol, which many potential customers view as an additional layer of validity and professionalism.
Though there are fees associated with registering and renewing a trademark over time, the benefits far outweigh the expense. Protection against infringement is a valuable advantage of trademark registration that ensures your brand remains in your control. Your registered trademark has nationwide validity, and as your business grows, so will the value of the mark. A strong trademark will be memorable and help customers find you in a crowded marketplace as well.
