5 Benefits of Trademarking Your Brand
A trademark allows you to own your brand
It means you're the only company who can use your company name, logo, slogan, domain name, personal name, product name, or hashtags. Here's why it's key:
1. A trademark prevents copycat brands
When you see similar brands popup, it's time to think about a trademark.
This is the best way to protect your brand. It ensures that you're the only one who can use your brand within your product category.
Without a trademark, there's not much you can do to stop competitors from using your brand.
2. A trademark prevents a lawsuit
Trademarks regulate what name, logo, and tagline you can use. If there's a similar trademark in your industry already, then you are legally prohibited from using that branding element. If you use it, you'll likely be sued and forced to pay monetary damages.
A lot of company names and branding elements are already trademarked. As the number of entrepreneurs grows, so does the number of trademark applications. Trademark applications are up 10% this year and there are currently 800,000 waiting to be reviewed already. That means a lot of company names are already registered.
You could be using a trademarked name already and receive a cease + desist letter soon. Or, another company could file a trademark application for your name and legally own it. To avoid the legal drama, you need to lock up your brand with a trademark.
3. A trademark prevents a costly rebrand
Trademarks operate on a first to file system. That means the first person to file the trademark gets the exclusive rights to use the name. So if someone else files first, they’ll own the rights to your name and you won't be allowed to use your brand anymore.
Think about how many brand pieces feature your company name: your website, social media, business cards, products, marketing materials, press links, inventory, etc. You'll need to change all of that, pull back all inventory with the brand on it, and possibly pay monetary damages. You'll lose customers, money, and valuable momentum.
So, if you find a great name, you need to file your trademark application now!
4. A trademark is your company's #1 asset
A trademark is your company's #1 asset.
A lot of people mistakenly think a trademark is worthless. But intellectual property rights, like trademarks, are actually worth a lot of money.
Want proof? Pop on over to the Securities and Exchange Commission and pull up the financial statements from your favorite publicly traded companies: Apple, Starbucks, Lulu Lemon. You'll see the financial value of their Trademark is sky high!
5. A trademark is a must for funding
Investors need to see that your company, and their investment in it, is protected from intellectual property lawsuits. Typically, they won't bother investing in companies that aren't protected with a trademark.
If you're building a brand, then a trademark is a smart investment. It guarantees that you're the only one who can use your work to make money.