Why Are Trade Marks Important?

You may have recently launched your startup, or you may be considering launching a new business or product. If so, you may be wondering why trade marks are important, and whether you should register one for your business. This article will explore five key reasons why trade marks are important to any new (or existing) business.

1. Identity as an Asset

Trade marks form part of your business identity, whether through a distinctive brand name or conceptual logo. Having unique identifiers builds your business profile in the marketplace and helps foster your business reputation as the business grows. These form part of the intangible benefits of having a registered trade mark. 

Consumer psychology and overall brand perception is often impacted by the business reputation and what it stands for. A distinctive trade mark that stands apart from others in the marketplace leads to consumer trust in the brand. This trust grows when the trade mark is registered, as this lends to brand credibility and authenticity. A trade mark is a key asset to any business looking to establish itself.

2. Branding With Conscience 

If your business is interested in operating ethically and with conscience, it is important to make sure that your intended business name is not infringing another business’s registered trade mark. Additionally, you should also consider whether your logo may infringe on another person’s trade mark or copyright protections.

3. Reputation Matters

As mentioned above, having a registered trade mark associated with your business builds a reputation in the marketplace. This makes it easy for customers to find you and refer to you. It creates distinction from other businesses and competitors and helps you stand out in the crowd.

Effective branding, and by proxy, applying for a trade mark registration, is a useful marketing tool to draw consumers to your business. Consumer trust in a brand is often extremely vital to the psychology of purchase decision making made by a consumer.

4. Psychology of Consumers

In addition to building a reputation in the marketplace, a registered trade mark also impacts consumer psychology. A consumer who has the choice to purchase the same base product, under different potential brands, may consciously choose to purchase one brand over another. 

Additionally, a particular logo may reinforce a specific idea. This occurs with many well known athletic and sportswear brands that reinforce and engage in motivational messaging in their slogans and symbols. Your business can build these types of profiles and create a brand story through a trade mark.

5. Exclusive Rights

If you intend to use a unique name or logo in your business, you should protect this through formal trade mark registration. It is important to prevent competitors from taking your ideas. They may dilute the nature and quality of the brand you have carefully developed. If you find that another party is using your ideas to promote their business, it may be more difficult to stop if you do not have any registered rights concerning the trade mark.

From a consumer perspective, they may become confused when a competitor uses your brand to promote their goods and services. To add insult to injury, a competitor may not provide the same quality of goods and services. This could have detrimental effects on your brand reputation. 

Key Takeaways

Trade marks are important for many reasons, whether it is to build a brand reputation, create an identity in the marketplace, understand the psychology of consumers or enforce your exclusive rights. A registered trade mark is necessary for a business at any level.

If you need help with trade mark registration, 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.

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