There are more than two million small businesses across Australia. With such a large number of Australian businesses across the market, your small business must stand out from your competitors. Registering a trade mark is one way that you can do this. A registered trade mark gives you exclusive rights over your brand asset, which can help facilitate the success of your small business.
However, you may wonder if it is worth investing in a trade mark for a small business. To help you better understand its benefits, this article will take you through six reasons small businesses should invest in trade mark registration.
1. Symbolise Your Identity
A trade mark is an important symbol of a business’ identity. This is even more important for small businesses, who are competing with so many other similarly sized businesses that are potentially offering similar goods or services.
A trade mark will help consumers distinguish your brand from that of your competitors. Additionally, it may help ensure that your rivals do not copy or steal your brand.
2. Build Your Reputation
Similar to symbolising your identity, a trade mark can help you build your brand. Consider an iconic trade mark like the Nike tick. Just seeing this logo evokes some form of response or recognition in consumers, which impacts consumers’ purchasing decisions. If your trade mark becomes associated with a certain type or quality of goods, your reputation will also grow through this messaging and increase your consumer base.
Continue reading this article below the form3. Attract Talent
A trade mark can also help attract certain employees. This is extremely important for small businesses competing for employees, particularly where there are skills shortages. Prospective employees will be more inclined to work with you if you have a strong brand that they recognise and can associate with a good company. Similarly, a trade mark indicates that you are investing in the longevity and growth of your business. This can be appealing to employees seeking job security.
Your business’ brand represents your values, identity and reputation. Learn how to create a successful brand and protect it.
4. Avoid Legal Issues
Registering a trade mark is important for small businesses to avoid legal disputes. A registered trade mark provides you with exclusive rights to use and commercialise your trade mark in relation to the goods and/or services it is registered for. However, if you do not register your trade mark and a competitor’s business takes issue with your business’s brand, you might find yourself in hot water. For smaller businesses without a lot of time or the financial means to respond to these disputes or even rebrand their entire business, this is best to be avoided. Therefore, a trade mark is a preventative measure, protecting your brand from the beginning.
5. Increase Your Business’ Value
Your business’ IP may be its most valuable asset, making it important to invest in it. Once your business attains a positive reputation for its product or service, consumers will continue to associate your trade mark with your business. This can increase the overall value of your business.
Further, a registered trade mark gives you the exclusive rights to commercialise your trade mark, which includes licensing your trade mark. As the licensor of a trade mark, you can maintain control over your assets while making a profit from them. This is done through granting license agreements to licensees, who pay for the use of your trade marks over a period of time within pre-agreed parameters.
6. Attract Funding
Having a registered trade mark is also an excellent way to draw in prospective investors. A robust trade mark portfolio can help demonstrate to potential lenders that you take your business and its growth and longevity seriously. Further, the risk for investors is lower because you reduce the risk of being involved in trade mark disputes. This, paired with the added value that a trade mark adds to your business, can make it easier to secure funding.
Key Takeaways
In summary, there are several reasons why a small business owner may consider investing in a trade mark. These include symbolising your identity, building your reputation, attracting talent, avoiding legal issues, increasing your business’s value and attracting funding.
If you need help with non-disclosure agreements, 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
A trade mark is a type of intellectual property (IP) that gives you exclusivity and enforcement rights over your brand’s assets. A registered trade mark acts as legal protection, giving you exclusive rights to your trade mark. There are also several marketing benefits to a trade mark, including helping you distinguish your brand and increase the reputation of your trade mark.
Registering a trade mark has a wide range of long-lasting benefits. Small businesses should not overlook these advantages. Some of these benefits include that trade marks can symbolise your identity and build your reputation. A trade mark can also attract talent and funding and help you avoid legal issues. Overall, a trade mark can increase your business’ value.
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