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Calculating the Cost of a Trade Mark: is it Worth it?

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

1. 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.

Here is a broad summary of these application costs:

Application typeActionFee
TM Headstart (pre-application service)New request (per class)$200
TM Headstart (pre-application service)New representation (per class)$150
TM Headstart (pre-application service)Additional class fee (per class)$200
Standard filing serviceApplication (with picklist)$250 (per class)
Standard filing serviceApplication (without picklist)$400 (per class)

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, you must renew trade marks every ten years. There is no limit to the number of times you may renew a registration.

The current costs of renewing your trade marks are below:

ActionOnline services fee Services fee (non-online applications)
Trade mark renewal – single class$400$450
Trade mark renewal – additional class$400$450
If the renewal is requested within six months after the expiry date$100 for each month, or part of a month, after the expiry date$100 for each month, or part of a month, after the expiry date

Source: IP Australia

2. Cost of Legal Help

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. However, engaging a lawyer can generally ensure a smooth application process. Furthermore, 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. 

3. 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 will also need to pay their professional fees.

In circumstances where a trade mark opposition goes to a hearing, you will have to 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 your trade mark portfolio size.

Costs of Not Registering a Trade Mark

1. 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. 

Enforcing your trade mark rights with an unregistered mark can be much more complex. Thus, this will consequently be significantly more expensive.

2. 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 miss this licensing opportunity and, therefore, an additional revenue stream. 

3. 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:

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

If you need help with 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

What is a trade mark?

A trade mark is a form of intellectual property protection that allows you to distinguish your brand from your competitors. A trade mark acts as legal protection and gives you exclusive rights to its use.

Is it worth registering a trade mark for my business?

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 potential additional legal costs in enforcing an unregistered trade mark. You may also miss commercialisation opportunities and additional business revenue if you do not register your mark. 

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Emily Young

Emily Young

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