5 Reasons to Register a Trademark for Your Business Name and Logo
After creating your new business and designing your logo, registering a trademark of your business name and logo is the next step. To do this, it’s crucial to familiarize yourself with the United States Patent and Trademark Office website and create a MyUSPTO account. In addition, understanding the best practices of registering a trademark will help when applying for a trademark. Why should you register a trademark for your business name and logo? The truth is, it’s not required in order to be a legitimate business; however, there are many reasons to do so. Here are 5 Reasons to Trademark Your Business Name and Logo:
1) Client Assurance
Trademarks exist for one main reason: to protect consumers from brand identity deception. Since the commencement of U.S. trademark registration in the 19th century, the reasons for registering a trademark have evolved, but consumer protection continues to reign as the main reason. Why does a trademark protect consumers from brand identity deception? It’s simple. You build your brand around your business.
A key component to your business is your name, slogan, and logo. These key identifiers are engraved in the public’s mind. Think Nike, Apple, or McDonald’s. Consumers know exactly what they’re in for when they associate with those names. They understand the quality and experience to look forward to and if it is slightly off, the consumer chooses to stay loyal or move on to a competitor. For example, if a Nike customer buys a pair of running shoes and they come apart, they may be dissatisfied and move to Adidas. The same with McDonald’s and Burger King.
You must register a trademark for your business name and logo to make it easier for your consumer to identify, remember, and stay loyal to you. In addition, you must live up to the experiences your business has made for your loyal customers. TuiSpace works with trademark specialist that can review your current trademarks and branding strategies.
2) Brand Protection and Enforcement
Another important reason to register a trademark for your business name and logo is to protect your brand and business. By registering a trademark, you are officially putting the federal government on notice that you have a business in commerce or in the market. Furthermore, you’re formally stating you are the owner of the business and proposed trademark. This assigns responsibility for any actions associated with the trademark. Once you register a trademark and receive your official certificate, you’re granted the right and responsibility to “enforce” your legal trademark rights. This means you must track its general usage, possible unauthorized usage, and compliance of others permitted to use the trademark. If you must enforce your trademark rights, then you are expected to protect your business’s trademarks through legal solutions.
3) Intellectual Property Valuation
Your intellectual property identifies what your business is and who you are. It tells a story. Most importantly, your intellectual property carries value. This value increases the more your sales and impressions do. Being positively identified by consumers means you carry monetary weight in the market. Therefore, this places a price tag on your brand. Registering a trademark at the USPTO protects the brand, and ultimately its value, which allows you to potentially sell the brand. In addition, if you eventually sell your business, include the value of your trademark portfolio in the sale price. This is especially true if your logo and name is the key indicator to your business identity. Registering a trademark for your business name and logo sets your brand up for future success and a worthy price tag.
As you build your brand and grow your client list, your intellectual property needs movement and usage. Licensing is a major reason to register a trademark for your business name and logo because it allows others to use your brand with permission. Licensing grants a party permission to use another trademarked logo for other business reasons.
For example, you receive a proposal for your booming online shirt company to collaborate with a local sports team. The team proposes a license to use their logo or design with your T-shirts, enabling you to sell them on your popular platform. This licensing deal is great exposure for the team and also brings more consumers to your business for both parties to make money. That team wouldn’t do this without registering a trademark for its logo. These licensing agreements help a brand expand and make money, adding value to the business as a whole.
5) Asset Ownership
At the end of the day, you own a business and all the assets, which includes trademarks. Intangible asset ownership is key when registering a trademark for your business name and logo. In fact, intellectual property makes up over 80% of successful business’ assets. When registering a trademark, state the ownership of the trademark, meaning you include your name and business on the federal application. If done correctly, the company’s operating agreement also states which intellectual property are assets owned by the company. Therefore, ownership belongs to you, the business owner. Asset ownership is powerful and registering a trademark for your business name and logo ultimately affirms your ownership status over the trademark.
There are other important reasons to register a trademark for your business name and logo. These five are the most important for a business owner to take into consideration when expanding a brand and growing a business. Please contact TuiSpace today to review your branding strategy and trademark review. Our trademark specialists will assist you with trademark application and registration.