Why is Trademark Registration an Investment and Not an Expense?

We are not suggesting that having a unique and attention-grabbing trademark should override the importance of quality and pricing.

However, the fact remains that after a savvy business owner has given his all to ensure superior quality and reasonable pricing, what’s left to be done is to ensure that his Trademark stays on top of the market recognition rung.

Therefore, it is very important to get your trademark registered as this is the most effective way of establishing your exclusive rights to it.

And we consider trademark registration an investment, because these exclusive rights do not only protect your revenue stream, they also open up a host of income generating possibilities for your company.

i) Generally, the cost of getting a trademark registered in a single country  is only a tiny fraction of the potential returns it can generate.  For example, there are companies who invested a few thousand ringgit to get their trademark registered and consequently earned millions of ringgit in the form of trademark licensing royalties.

ii) Trademark registration is also a form of insurance against infringement – documents to prove the registered or registration pending status of a trademark are proof of your rights to support your case in the event of a legal infringement action.

iii) Trademark registration plays a crucial role in business expansion.  For example, in many jurisdictions, it is mandatory for a company to have a registered trademark in order to apply for a franchise status.

iv) A well-recognised trademark is a form of intangible asset for your company because it is equivalent to a valuable brand that adds value to your company’s worth.  This, in turn, contributes to positive Investor Relations and public relations that will ultimately bring a positive impact to your company’s your bottom line.

v) Once attained, a trademark registration is valid forever provided that it is renewed periodically e.g. every ten years in Malaysia This means that you would have rights to the trademark that can be passed from one generation to another!



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