Importance Of Trademark In Businesses.

Table of Contents

Introduction

A trademark is a company’s persona and identity in the marketplace. Every trademark you build adds to the financial value of your business, much more than your tangible assets.That is how people recognize your products and services.

For example “Bose”. A lot of people may not be able to notice the subtle difference between the sound quality of, say, a Sony headphone and that of a “Bose”. But as soon as he walks into a showroom with both “Bose” and a Sony kept side by side, inevitably he will know that the Bose headphones are better.

The only other thing that will stop him from buying a “Bose” headphone is the cost. Whether they are able to afford it is a different question. But the prospective buyer of the headphones will know which one is the better one.

So, what made all the difference? The “Bose” trademark etched on the headphone. That trademark conveyed to the buyer the goodwill and quality of the product.

Trademark is a symbol of the identity of your business. Trademark is also known as the brand or a brand name. It can be anything such as a name, symbol, word, slogan, or any physical device…Opines Renowned Business Advisor and Strategist, Hirav Shah.

How Do Trademarks Work?

Trademark is a type of Intellectual property. It is a sign capable of distinguishing the goods or services of one brand from other brands. They are protected by intellectual property rights and consist of a recognizable sign, symbol, logo, design, or expression to identify a service or product.

The main purpose of a trademark is to identify the source or origin of goods and associate a mark with the product, says Business Astrologer and Astro-Business Strategist, Hirav Shah

Meanwhile, Hirav Shah outlines the main four functions of a trademark below-

1.It identifies the product and its origin.
2.It proposes to guarantee its quality.
3.It advertises the product. The trademark represents the product.
4.It creates an image of the product in the minds of the public, particularly the consumers or the prospective consumers of such goods.

Next, Business Advisor, Hirav Shah, mentions the importance of trademark in businesses below-

Importance of trademark

1.They are an effective communication tool.

2.It allows businesses to effectively utilize the internet and social media and market the business and spread awareness about it.

3.They are a valuable asset. Their value increases with the growth of your business. They can be bought, sold, licensed (like renting or leasing), or used as a security interest to secure a loan to grow your business.

4.Trademarks are an efficient commercial communication tool and make it easy for customers to find you.

5.They never expire, giving you lifelong security. You don’t need to renew it every few years, unlike patents.

6.Trademarks also make hiring easier as they instill a positive effect in people’s minds and employment opportunities are sought by the candidates.

7.Trademark registration is a very important asset in a global economy.

When choosing a particular trademark for the identification of certain goods or services, it is necessary to take into account its authenticity and expression, since consumers themselves value trademarks and they are willing to pay much more for a product bearing a recognizable trademark that meets their expectations.

8.It is believed that the value of the world’s most famous trademarks such as Coca-Cola, Apple, Samsung, and others exceeds the overall value of other companies, and the same is measured in tens of billions of dollars.

9.Trademark protection becomes the subject of legal trade and protects your mark from infringement by other brands.

The purpose of registering a trademark is to prevent competitors of your business from stealing your business name or logo. By registering your trademark, you are protecting your rights as a business owner and is one of the most important investments in your business.

10.Trademarks provide protection for both businesses and consumers, making them an important part of running a successful company.