1) An exclusive right
A trade mark registration is an exclusive right to use the mark in the territory in which protection is granted. If you renew your trade mark registration at the appropriate time, you have a right which lasts in perpetuity.
2) To avoid the uncertainty and expense of passing off
If you do not register your trade mark, it is still possible to take action against another party on the basis of ‘passing off’. This is a common law right, and to be successful you must prove:
- You have goodwill/ reputation in the mark
- The other party has made a misrepresentation
- This has caused you damage.
Unlike trade mark infringement, where you can point to the existence of a registration certificate as proof of your rights, passing off is difficult and therefore costly to prove. Such actions are potentially far beyond the budget of most companies. You may find that if you cannot enforce your name, you may have to give it up, perhaps after years of trading.
3) To add value to your business
A trade mark is your intellectual property and is a tradable commodity. It has value. You can:
- Sell it.
- Licence it.
- Franchise it.
A trade mark adds credibility, which enables greater sales, and increased profits.
4) Trademarks identify origin
One of the main purposes of a trade mark is to prevent confusion in the marketplace. Your trade mark tells your customers who you are, and where to return to if they like your product. Your brand is a valuable marketing and advertising tool. It sets you apart, especially if your competitors are producing inferior or defective products.
5) Counterfeit goods
Having a trade mark registration helps relevant authorities to bring charges against counterfeiters if they are using your trade mark.