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Tuesday, November 28, 2023

Why is company trademark registration important?

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Trademark Registration is an intellectual property right that protects the brand name, wordmark, logo, packaging material, unique and distinctive shape, sound mark, etc, used in the course of trade. It helps protect the unique brand identity of any company, firm, or sole proprietorship. As the name suggests, trademark registration protects a mark that you are using to promote your business. The need to get company trademark registration is increasing as India is on the verge of becoming the startup hub. Trademark registration online in India has gradually become one of the most basic registrations that any entity opts for. 

What is a Trademark? 

A trademark is an intellectual property right that forms part of an intangible asset when backed by a legal registration. As the name suggests, a trademark protects the name or any mark you want to or are using in course of any trade. The Trademarks Act, of 1999 governs the entire trademark registration process in India.

Reasons why company trademark registration is important! 

The following are the major reasons why company trademark registration is becoming a need for every business in India: 

Increasing Competition

For example, As soon as you see the words ‘Just do it”, you know that the campaign is related to Nike. Hence, in this competitive age, having a unique brand is going to help your brand and business is growing. 

Since the advent of various schemes by the government to encourage the youth in working towards the business ecosystem, such as the ‘Startup India Scheme” and the “Ease of Doing Business” campaigns. We can see a lot of increase in competition with the rising number of businesses. In this competitive market, it is not easy to create and then retain your brand identity in the minds of the general public. Having the company trademark registration will not only give you exclusive rights over your mark, but it will also help in building a unique brand identity that remains in the mind of the public. 

Easy online Process

You can obtain company trademark registration by either online or offline process. The online process makes the entire registration hassle very easy for you. All you need to do is choose a unique name, identify your trademark class, check company name availability, and apply for registration by submitting form TM-A. Further, all updates on actions to be taken such as during the reply to the examination report, etc. are communicated through online notices and emails. As a result, effective communication positively impacts the timeline for trademark registration.

Protects against infringement

The main reason why company trademark registration is important is because it protects from infringement. When a third party uses or tries to use a registered mark or a deceptively similar mark without obtaining consent from the registered proprietor of that mark, especially to generate profits, it amounts to infringement. The following remedies are available to the registered proprietors of trademarks in case of infringement: 

  • Temporary injunctions; 
  • Permanent injunction; 
  • Ordering destruction of infringing copies; 
  • Order payment of damages to the infringed party; and 
  • Imprisonment. 

Increases Credibility 

When a brand has a registration that is approved by the government, it becomes a lot easier for the general public to trust the brand or business. Especially when because online businesses can also be scams and there is a rise in such online scamming businesses. The ™ or R symbol associated with your registered trademark ensures the customer of your legitimacy.

Facilitate being on online marketplaces

Many businesses today want to be a part of the e-commerce marketplaces to get more attention to their products and gain high profits by creating that visibility. However, many online marketplaces such as Amazon, Flipkart, etc allow only the brands that have gotten their trademark registration. This helps them to ensure that credible brands are getting the chance to grow.

Protection lasts a lifetime! 

Trademark registration is valid for 10 years from the date of applying. However, the Indian laws allow you to renew your trademark at the end of each of these 10 years. If you do this continuously, during each renewal period, your trademark will be protected. Xerox brand was able to protect its registration. It was on the grounds that name was always used the name in advertisements. Besides, they had been renewing the brand name registration at due intervals. Hence, the validity of its registration could not be questioned.

Earn profits by licensing

We are aware that intellectual property rights are intangible assets. Besides, you can present it in the balance sheet of the company as an asset. However, apart from this, there are other monetary benefits that you can gain from licensing your rights in that IP. This licensing of rights is available for trademarks too. The licensing will allow someone else to use your mark, as per the terms decided mutually. This licensing happens in exchange for monetary consideration. Brand collabs usually involve licensing of trademarks, and are gaining more and more popularity these days. 


There are many other reasons such as creating goodwill in the market or getting international recognition, etc. that make getting company trademark registration so important. Yet, the one reason that makes it almost mandatory for all companies is that you get 100% protection on your marks over infringement. Further, you can also assign your rights over your mark, as a whole or in part by way of trademark assignment. You can get monetary benefits from getting a trademark assignment in India

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