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Benefits to Registering a Trade Mark

For all companies that are growing starting up, the importance of protecting the name of a company or its logo must not be overlooked. A trademark owner who has an officially registered trademark will be granted an exclusive rights to utilize their mark in the particular category of products or services. The trademark owner also has the ability to stop competitors from using their trademarks and profiting from their well-earned reputation.

Asset Protection

In the majority of businesses that are registered, the name of the business and the logo of the brand will likely to be at the center of any registration application. These are the names and images that are displayed to the general public to differentiate the services and products offered (from the offerings of its competition) and also to build trust and brand recognition.

In the event of registering a name for a business or logo, the owner can put other parties in the know that they have an officially registered trademark. The proprietor of the UK trademark is entitled to pursue competitors from third parties who attempt to trademark a confusingly identical trademark, or have similar marks as part of their business. This preventative measure reduces the chance that a third-party could dilute the brand.


A trademark that is registered represents an intellectual right which may be used in the name of the owner. Where a business owner plans to franchise a business, they can licence the use of the trademark to franchisees/licensees in consideration for the licence fee.

Another example is the sale of a business. In the course of negotiations for an enterprise sale prospective buyers will need confirmation from the vendor that their goodwill for the company is secured as well as that the purchaser will get exclusive rights to the company’s name and logo. If the seller is unable to provide the assurances required, this could impact the price a buyer is willing to purchase the business.

Another consideration is image. The owners of trademarks registered may use their trademark’s (r) symbol for their trademark registered. The registration certificate could be used as a tool for marketing to enhance professionalism for an audience.

Click here for a European trademark search tool.

Beware of Trademark Infringement

If a company starts marketing or promoting its trademark in violation of the registered trademark of a third party, it could cause costly and time-consuming difficulties. These issues could halt development of a product or service before it even gets going. In the worst case scenario, the business that is infringing could be the subject of an injunction proceeding and ordered to completely change their name and logo and deliver offending products and make a payment for damages or a portion of any profits.

The Registration Process

There are specific statutory reasons that can hinder a trademark application from progressing to be registered. A trademark name for a business is not just a description of the products and services offered and shouldn’t be common or generic.

Businesses who are considering protecting their trademarks should look through the trademark registry databases to ensure that the trademark being sought isn’t too similar to trademarks that are registered. A trademark application that is too similar to a trademark already in use might be challenged by the registered trademark owner.

It is also essential to make sure that the trademark being applied to cover the countries that it operates in, as well as cover all the categories of services or goods it offers (there are 45 categories that can be used).

Unregistered Rights

If an application for trademark registration is not required, a business may still benefit from its non-registered rights to goodwill. In order to enforce non-registered rights by taking action for “passing off” is different from trademark infringement actions. For instance, when passing off, a defendant must prove proof of its goodwill associated with the mark , as well as the harm caused or the possibility of the damages.