Ten reasons to consider registering a trade mark
Let’s be honest, spending money on legals is very rarely at the forefront of a business owner’s mind when they are starting out. Many businesses prioritise the design of their logos and websites in order to get going, and may think that it’s only when the business is generating revenue that registering a trademark becomes a priority.
You may have even been advised that registering a company name, social media handles, or even a domain name will be enough to protect your brand. While these are all useful, and really important, they are still no match for the value that a registered trademark can bring to your business.
Every single business will have a brand. Likewise, every single business should be considering registering a trademark even before their business hits the market. Here are ten reasons why.
reason 1
Trademarks are a valuable asset.
Trademarks can appreciate in value over time. The more your business reputation grows, the more valuable your brand will be.
Trademarks provide value beyond your core business. Trademarks can lead the way for expansion from one industry to another, such as from personal care to clothing or eye ware. If you desire it, your trademark can lead to the acquisition of your business by a larger corporation.
Trademarks are a property asset, similar to real estate, that can be bought, sold, licensed (like renting or leasing) or used as a security interest to secure a loan to grow your business.
reason 2
Trademarks are a bargain to obtain
The cost to apply for the registration of a trademark with the Companies and Intellectual Property Commission (CIPC) is R590 for each application in each class that you intend to use your trade mark.
The costs up to registration of your trade mark are nominal. Once registered, the registration will need to be renewed every ten years, also at nominal costs.
reason 3
Trademarks never expire
As long as you use your trademark, and make sure to keep renewing it every ten years at CIPC, they will never expire. Many well known trademarks have been registered for hundreds of years. Pepsi was first registered in 1896 and Mercedes was first registered in 1900.
reason 4
Trademarks provide exclusive rights
A trademark allows you to prevent the unauthorised use of your brand in the classes in which the trademark is registered. As the owner of a trademark, you can obtain an interdict to stop others from using your trademark, or anything confusingly similar to it, and get damages (or costs) against those using it.
reason 5
Trademarks can be used to obtain loans
Just like immovable property (such as houses) can be leveraged to get loans, so too can trademarks.
reason 6
Trademarks can be used to start a franchise
You can license your trademark to others to either build a franchise, or simply to assist you with broadening the reach of your brand. A trademark license can also be recorded on the trademark register, and provide your licensees with the opportunity to institute legal proceedings in the event that others are infringing your rights.
reason 7
Trademarks make it much easier to prove your rights
In any legal proceedings relating to a registered trademark, you can simply provide a copy of the registration certificate to show that you have rights in that brand. This also applies to social media and domain name complaints. In other words, you will not need to show that you have any reputation in the brand as is the case with an unregistered brand, and this makes resolving disputes much faster and cheaper.
reason 8
Trademarks make it easier to expand your brand internationally
A registered trademark in South Africa can be used as a basis to obtain protection in other countries. In this regard, it is important to understand that you can only enforce your rights in the trademark in each country where it is registered.
reason 9
Trademarks can be used to stop counterfeit products
A registered trademark can be used by customs authorities to stop the importation of counterfeit foreign goods into South Africa. The Counterfeit Goods Act also enables the owner of a trademark to institute civil or criminal action against a person or company that is involved in counterfeiting.
reason 10
Trademarks can be obtained without a lawyer
CIPC allows the owner of a trademark (called the proprietor) to file an application to register the trademark on their own. The process can be done online and all documents can be filed electronically.
That said, it is always recommended that some legal advice is obtained to limit the risks of having the application rejected by the trademark registrar, or objected to by third parties who might view your brand as confusingly similar to their own.
If you need some help, we can conduct preliminary searches on the trademark register to check if other trademarks might pose any obstacles. We are also able to prepare your filing documents, and to assist with any responses that the registrar might require during the registration process.