Why registering your trademark protects your business

If you own a business, you no doubt have a trademark, but you may not even know it. A trademark is anything that designates you as the source of your goods or services. This could be your company name, logo, slogan, or design. Your goal, of course, is to have customers see that name, logo, slogan, or design and think of you and you alone. A popular example is the Nike swoosh, as anyone who sees that image immediately thinks of Nike. Nike has built up years of goodwill and extensive use of that swoosh, which has led to strong customer recognition. Now, let’s do the same for you.

Step 1: Pick Your Trademark

Your first step is to pick your trademark. There are a number of business decisions involved in choosing a company name, slogan, or logo. From a legal standpoint, determining whether a mark is already in use by someone else is a critical first step that typically involves engaging legal counsel. You don’t want to spend months building your brand, only to realize that someone is already using that name to sell similar goods or services.

Legal counsel can search the registered and pending trademarks on the website of the USPTO (United States Patent and Trademark Office) to help make sure that your new mark will not infringe on another’s. It would also be unfortunate for you to design and print thousands of business cards using a slogan that isn’t registerable because it’s descriptive or generic. Legal counsel can help avoid those pitfalls.

Step 2: Registration

After you’ve confirmed your mark is available and distinctive, you’re ready for the next step: registration. There are two types of trademarks: common law trademarks and registered trademarks. Common law rights exist as soon as you start using your mark in commerce in connection with your goods or services. If you open a coffee shop called Lucky Beans and start selling under that name, you automatically have some trademark protection, but only in your local area. The rights of a common law trademark holder are much more limited than those of a registered trademark holder.

You’ve spent significant time and money building your brand, including its name, logo, and reputation, but without a registered trademark, all of that effort could be at risk.

Here’s why registering your trademark is one of the smartest business moves you can make:

Nationwide Protection

Without a registered mark, you may have common law rights in your limited geographic area, but a registered mark provides you with protection nationwide, even if you do not use the mark nationwide. In other words, your registration provides you with the exclusive right to use the mark nationwide in connection with the goods or services listed in the registration. This can also help serve as a basis for international filings, if you’re thinking of expanding internationally.

Presumption of Validity

A registration provides you with a presumption that your mark is valid and owned by you. This will be crucial if you ever get into a dispute with someone who is using a similar mark, because you must prove ownership before you can sue for trademark infringement. Trademark infringement is the unauthorized use of a mark in connection with goods or services in a manner that is likely to cause confusion or mistake about the source of those goods or services. The registration is a fundamental piece of evidence, making it easier for you to establish ownership in any claim of trademark infringement.

Publicly Available to Deter Others

As mentioned above, all trademarks are publicly available and searchable on the USPTO website. A third party looking to use or register a new mark would (or should) search the USPTO website, and in doing so, would be able to see your application or registration. This will deter others from choosing a mark that is similar to yours if they intend to use it in connection with the sale of similar or related goods or services.

Protection Against Cybersquatters or Infringers

If you discover that someone is using your trademark in their domain name, you can take action against them through the Uniform Dispute Resolution Policy (UDRP), an informal dispute resolution process for resolving disputes over domain names. Having a registered trademark makes it much easier to prove your rights to the name.

Moreover, if you sell products on Amazon, you are likely familiar with Amazon’s Brand Registry. For those who are not, enrolling in the program offers important advantages, including streamlined tools for protecting your brand. To enroll in Brand Registry, your brand must have an active registered trademark or a pending trademark registration.

Enhanced Damages

Hopefully, you never get to the point where you must sue someone for trademark infringement, but if you do, a trademark registration could lead to the recovery of higher damages. If the copier is using a counterfeit mark, which is defined as a mark that is identical or substantially indistinguishable, you can recover treble damages or statutory damages.

In short, registering your trademark protects your brand, deters competitors, and gives you powerful tools to enforce your rights. It’s an investment in the long-term value of your business.