A Trade Mark as an Investment

How wise of an investment is obtaining a trade mark registration? New campaign ideas can come and go just as quickly. It is sometimes sensible to push back against the urge to register any new sub-brand or slogan, waiting to see how committed the business is in adopting a new name or expanding to a new territory. 

A trade mark lasts 10 years and functions more as a sword than a shield. If not used, a trade mark registration can be easily lost. The costs of a trade mark can also vary significantly, in the UK a single-class trade mark can be around $300 while in Saudi Arabia the same application can be around $3000. And these are the costs of a non-problematic mark that does not face any inherent objection by an Examiner or a third party who believe they have an earlier right. Then enforcing a trade mark against concerning applications and /or use by others, involves further costs that a proprietor has to be ready to incur if they are serious about protecting their mark. 

A trade mark, although intangible, is a business asset like any other. The more you invest into it the stronger and more valuable it becomes. But like any investment it has to be well-considered. Is there commitment to use the mark for a long period of time? Is there commitment to use it consistently, avoiding the temptation of making changes to it? Is it a strong mark e.g. a mark that is not borderline descriptive or generic? A TM registration for a weak mark will have limited protection, and can be difficult to extend that protection to new markets of interest. A weak mark can also be more costly as it might take extensive resources to register it. 

Furthermore, if the mark is not intended to be on the market for too long, is the risk of launch without TM registration manageable? What would be the cost to the business to have to pull the mark off a campaign at the last moment? A manageable risk might mean that the mark will only be used on digital material rather than on the pack of a product. Digital use will be easier and less costly to change if needed. 

The answers to the above questions form the decision on whether a trade mark protection is a sound investment. No answer however can negate the need to do a search and know if the mark is available to use in the first place, with or without TM registration. Unnecessary costs, time and effort can be the result of skipping the step of performing an availability search – others will not hesitate to enforce their earlier rights if they spot anything that might jeopardise their brand, and investment.

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