How Trademarking Early Benefits the Future of Your Business
Starting a new business is exciting, but it's also incredibly nerve-racking. There is so much to consider and plan for, and the last thing you want is to be caught in a costly legal dispute or see your brand elements used by internet copycats to make a profit.
Ensure you are adequately protected by obtaining the appropriate trademarks as early as possible in your business journey to avoid frustrating legal hassles, so you can focus on growing your business.
What Is Trademarking?
Registering a trademark is the process of formally solidifying your business's ownership over the identifiers that differentiate your company from similar brands. You can trademark many different physical and non-physical concepts, including (but not limited to):
Brand name
Product/offer names
Slogan/tagline
Logos
Color palette (in cases where that color palette can be proven to serve as a source identifier for the brand)
You'll need to register your trademark with the United States Patent and Trademark Office, which currently takes an average of about 14-18 months. Once you have a federal trademark, you will have obtained a level of protection that prevents other companies and individuals operating under the same or related trademark classes from selling, distributing, or profiting from your trademark. While a trademark can technically be registered at any point, you should consider trademarking as soon as possible when starting a new business.
Why Trademarking Early Is Important
Because starting a new business can be a whirlwind of obligations, registering trademarks tends to fall low on the priority list, especially if you're not profitable yet or you're still growing your client/customer base. You may be too busy building your offer suite, hiring support, marketing your brand and gaining your footing as a business owner. You might assume that trademarking can wait because there are many other pressing matters.
However, this can be a significant misstep. Failing to trademark early can leave you exposed to problems and headaches in the future. It can also become costly if you have to pursue legal action against someone who steals your intellectual property, placing you in a position where you will have to prove that your first use rights over the brand element in question. Trademark disputes can cost tens of thousands of dollars at a minimum, with many disputes often costing much more.
Here are the main reasons to consider registering your trademarks as early as possible:
Legal Leverage in an Infringement Situation
The more traction your business gains as you grow and your brand becomes well-known, the greater the potential for copycats. They may try to steal your ideas and claim them as their own, attempting to profit from the reputation you’ve built. Unfortunately, the internet has only made this problem exponentially worse. Many global brands, like Shein and Nike, have even found themselves on either side of a trademark infringement dispute.
While a trademark alone won't stop others from trying to copy your brand, it can prove highly beneficial if you need to take legal action. Sometimes, just having an active trademark can be enough to deter thieves from attempting to profit from your work. If an infringement matter does escalate, your registered trademark acts as legal leverage to show that you are the rightful owner of your brand. Without adequate brand protection, proving your prior rights can be a more difficult and stressful process and your overall recourse may be limited.
The Ability to License, Franchise, and Form Partnerships
If you plan on expanding your brand in the future, securing a trademark is essential for protecting your intellectual property during the process of licensing and franchising. Trademarks legally safeguard your brand, ensuring that your brand integrity remains intact as you grow. By trademarking, you can confidently enter into licensing agreements, allowing other businesses to use your brand name, logo, or products for a fee. This not only creates additional revenue streams but also enables you to diversify your income sources without compromising your brand's identity and reputation.
Similarly, franchising becomes more viable and secure with a registered trademark, ensuring that franchisees adhere to your brand standards and maintain consistent quality and service. It prevents unauthorized use, protects your business from dilution, and maintains customer trust. Moreover, having a registered trademark facilitates the forming of strategic partnerships and collaborations. Potential partners are more likely to engage with a business that has legally protected its brand, demonstrating professionalism and a commitment to maintaining brand integrity. A strong trademark enhances your brand's appeal and credibility, contributing to your business's growth and success.
Freedom to Grow Your Brand Without Worry
Securing trademarks early in your business journey is crucial for protecting the foundation upon which your business is built. By registering trademarks during the early stages of your business, you establish legal ownership over your brand identity and key assets. This proactive step not only shields your intellectual property from potential theft and unauthorized use but also fortifies your position in the market by preventing competitors from exploiting your brand's reputation and goodwill.
Additionally, initiating the trademark registration process early on minimizes the likelihood of encountering legal obstacles, complexity, and extensive costs later. It allows you to navigate the registration process more smoothly and efficiently, avoiding delays and potential conflicts that could arise if someone else were to register a similar mark ahead of you. This proactive approach will grant you peace of mind, enabling you to focus wholeheartedly on scaling your business and pursuing growth opportunities without the distraction or worry of unresolved legal matters.
Improved Reputation and Credibility As A Brand
In today's highly digitized landscape, building and safeguarding your reputation is paramount. Potential customers and business collaborators seek assurance that your brand is trustworthy. A registered trademark plays an important role in establishing your credibility, signaling to potential customers and stakeholders that your brand is reputable. This assurance not only enhances your brand's authority but also opens doors to lucrative partnerships and contracts.
In industries with intense competition, like the retail, creative, and tech sectors, a strong reputation can make all the difference. Companies are more inclined to engage with brands that have taken proactive steps to protect their intellectual property. A proactive approach to trademarking not only protects your brand identity but also reinforces your standing in the market, positioning your business for sustained growth and success.
Greater Business Valuation
Trademarking also plays a crucial role in enhancing the overall value of your business over time. As your brand's reputation strengthens, so does the value of your trademarks. This is particularly advantageous for entrepreneurs who envision selling their business or passing it down to future generations. In fact, a 2016 article by the World Intellectual Property Organization underscored the significance of intellectual property as the most valuable asset for businesses today, stating that IP accounts for up to 80% of company value on average – a figure that is likely even bigger today! By securing trademarks early and nurturing their growth alongside your business, you not only protect your brand but also increase its market appeal and financial worth, setting the stage for long-term market sustainability and strategic business transitions.
Don’t Delay in Trademarking Your Brand
Establishing a trademark can get complicated and takes time, but it's necessary to protect your brand online and offline. That's why we have developed our Brand Builder® trademark package, which helps business owners get professional help from an experienced trademark lawyer. We’ll walk you through the USPTO Federal Trademark Application, provide professional advice, and guide you through the trademark registration process from beginning to end.
Reach out today to begin protecting your hard work and creativity, and let us support your brand growth for years to come!
