A trademark is a form of intellectual property that refers to an easily recognizable word or combination of letters or words, symbol, slogan, tagline or sign denoting a specific product and it helps differentiate it from all other products of the same kind. Trademarks are typically used to establish the exclusive identity over a product, and it recognizes the company’s ownership of the brand.
A trademark constitutes as a significant element for an entity, not only because it helps in distinguishing from products within the same systems but also because it enables consumers to differentiate a product from that of a company’s competitors based on certain words, design elements, bands, slogans with a product or service, enabling them to. From the perspective of an entity, trademark is not merely a symbol or aspect of identity, it is a repository of the entity’s reputation and goodwill in the market. [1]
Trademarks may or may not be registered. However, for a trademark to be protected against infringement, it is necessary for it to be registered. Therefore, it is of utmost significance for the entrepreneurs to know the benefits of registering their company’s trademark. This article will discuss in detail the numerous benefits of registering a trademark in India.
Benefits of Trademark Registration
1. Exclusivity:
Proprietor of a registered trademark has the benefit of selective right, i.e., he/she can decide to utilize the same trademark for every item that falls under the classes specified in the application. It prevents third parties from advertising similar services or products using confusingly identical trademark.
2. Legal Protection against Infringement:
Registering a trademark will assign intellectual property to the product that provides exclusive rights to the owner, and hence, it will be protected against an infringement by any third party who uses the same without permission from the owner. An infringement is defined as a usage of a trademark that is deceptively similar or identical to the original holder of a registered trademark by an unauthorized person to propagate goods and services which fall under the same class of services or products under which the original trademark is registered. [2]
An owner of the registered trademark can make use of ®symbol to indicate the exclusive right. In light of this, any registered trademark owner can seek redress in court of law from infringement of his/her exclusive rights of usage. Sections 27 and 29 of the Act gives the entitled registered proprietor of the trademark the right to take an action against infringement.
3. Differentiation from other products:
At the first sight of a trademark, it is what differentiates a product from its rivals. A customer base will be formed based on such unique trademark and the brand value that a product possesses. This will act as an efficient commercial tool. It captures the attention of the consumers and impacts the buyer’s decision-making, thereby reducing confusion concerning the authenticity of a brand.
4. Goodwill and Brand Value:
A registered trademark is an expression of identity of the entity that possess it. A trademark communicates with the consumers about the company’s brand value, net worth and goodwill in the market. Once a product is associated with a trademark, consumers will begin to link the product with a certain standard of quality, features and performance level in the market. Soon, a trademark begins to act a tangible proof for the quality of a product or service that is being offered. Hence, it can be said that a registered trademark would enhance the image of the company in the market by maximizing consumer confidence.
5. Creation of an intangible asset of value:
A registered mark remedies the owner from the struggle of going through the tiresome necessity of proving distinctiveness in each step of proving the false representations, thus acting as an asset in itself. Trademark acts as an intangible asset in aspects like income tax or accounting.
In fact, these trademarks can be sold, bought, licensed, assigned, used commercially or even be franchised in any way the owner chooses to. It is also a potential source of income as revenue can be generated by selling, licensing or assigning them to third parties. A trademark’s economic value also increases parallel to the business growth and the mark’s popularity. The value or cost of the trademarks can be recorded in the account books and a record revenue or deduction on depreciation can also be claimed on them.
6. Global Recognition and Eligibility:
As India is a signatory to the Paris Convention for Protection of Industrial Property, the Indian application of trademarks have the right of privilege and priorities to secure registration and protection of their trademarks in countries that are signatories to the convention. [3] Under this convention, the Registered Owner can assert a priority or prior user claim on the basis of the trademark registration certificate in India. When such right of priority application is filed by any one of the contracting States of the convention, applicant is eligible to apply for protection in any other contracting States just within a span of 6 months.
Furthermore, the registration and the goodwill garnered in India would also act as a strong foundation for gaining recognition internationally. Further, as per Section 36D of the Trademarks Act, 1999, introduced vide the Trademarks (Amendment) Act, 2010, Indian applicants can now secure international registration and protection for their trademarks.
7. Cost-efficient protection:
In India, registration of a trademark will be valid for a period of 10 years from the application submission date. It can be renewed timely with no upper cap on the number of times it can be renewed. Online trademark registration process in India is a very convenient and cost-efficient process and it is generally issued within a span of few days after filing.
8. Attracts new customers:
Trademarks also help in furthering the company’s expansion by attracting new consumers who would start associating their value to the signs that represent the company. A positive perception is fostered around the company’s trademark, thus drawing the attention of more clients and consumers.
Conclusion
There are multi-fold advantages of getting a trademark registered in India alongside exploring how it enhances business engagement, opens up avenues for growth internationally and improves brand value. The exclusive right conferred upon the owner would act as a shield to all the infringements and objectionable usages of the mark. Therefore, it can be conclusively held that a good trademark is one that is simple to recall would help build reputation and trust of the services and goods provided by a company besides maintaining the originality and distinctiveness that sets it apart in the market.
Endnotes:
[1] Cable News Network LLP (CNN) v. Cam News Network Limited, 36 PTC 255 (Delhi High Ct. 2008).
[2] Trademarks Act, 1999 § 29.
[3] Trademarks Act, 1999 § 154 and 155.
Author: Barbie Singh, Senior Associate (assisted by Harshitha Adari).
Disclaimer: The content of this article is intended to provide a general guide to the subject matter and that the same shall not be treated as legal advice. For any queries, the author can be reached at info@samistilegal.in
