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
