Calculating the Cost of a Trade Mark: Is it Worth It?

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Table of Contents

• Costs of Registering a Trade Mark
• Costs of Not Registering a Trade Mark
• Key Takeaways
• Frequently Asked Questions

When considering whether you should register a trade mark, weighing the costs with the benefits is important. Like many business decisions you will make, this can be difficult to do. This article will help you calculate whether the cost of a trade mark is worth it for your business.

Costs of Registering a Trade Mark

Registration and Renewal Costs

The cost of registering a trade mark in Australia will vary and depend on several factors, including:

• the type of application you pursue; and
• the number of classes in which you wish to register your trade mark.

A broad summary of these application costs is outlined below:

Source: IP Australia 

Note that these fees do not account for any objections or opposition to your trade mark application, each of which has its own associated fees.

In addition to the application costs, trade marks need to be renewed every ten years. There is no limit to the number of times a registration may be renewed.

The current costs of renewing your trade marks are outlined below:

Source: IP Australia 

Cost of Legal Help Regarding Your Trade Mark

It is possible to apply for a trade mark without engaging a lawyer. There is no obligation to have someone apply for a trade mark on your behalf, although it is recommended to ensure a smooth application process. Having a lawyer familiar with your trade mark from its application date will help mitigate potential issues and reduce future costs.

The cost to engage a legal professional will depend on the expert’s professional fees and fee structure. 

Enforcement Costs

If you find that someone has infringed on your trade mark or you wish to oppose the registration of a trade mark, there will be costs involved.

For example, consider someone making a trade mark application for a logo that is similar to yours. In that case, you must pay an official fee of $250 to file a notice of intention to oppose the registration of that trade mark. If you engage professional help, you must also pay their professional fees.

When a trade mark opposition goes to a hearing, you must pay additional official fees. Similarly, if the party has requested a hearing and you would also like to participate in the hearing, you must pay an attendance fee.

In addition to official costs to IP Australia, it might be the case that you have to pay for staff or software to help monitor your trade marks. The price associated with this will differ greatly depending on the size of your trade mark portfolio.

Costs of Not Registering a Trade Mark

Legal Costs

It is not strictly necessary to register your trade mark. An unregistered mark may still provide you with some protection. However, registering your mark gives you greater rights to protect and commercialise your mark. 

This means that enforcing your trade mark rights with an unregistered mark can be much more complex, ultimately costing more.

Loss of Commercialisation Opportunities

One of the benefits of trade mark registration is the ability to license your trade mark. A license allows you, as the licensor, to charge others for using your trade mark. Such agreements usually occur for a specific period and within certain geographic parameters.

Failure to register your trade mark means you may lose out on this licensing opportunity and, therefore, an additional revenue stream. 

Loss of Business Value

Since a trade mark can protect the identifiable features of your business’s brand, the value of a trade mark also represents the business’ goodwill. Goodwill refers to its overall reputation and customer loyalty and is an intangible asset to any business. 

As such, failure to register a trade mark may result in a severe loss in the value of your business. While unregistered trade marks can still carry goodwill, trade mark registration is a tangible way to demonstrate and solidify your rights.

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Key Takeaways

Overall, determining whether a trade mark is worth it for your business depends on numerous factors, including how important your brand is to your overall business. However, some costs you will incur when you do not register your trade mark include the following:

• potentially higher legal costs in enforcing an unregistered trade mark;
• loss of commercialisation opportunities; and
• loss of business value.

If you need help registering a trade mark, our experienced trade mark lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions