Are you looking into trademarks for start-ups? Developing a new Business, making it commercially viable, taking it to market, forging strong customer relationships and establishing a reputation is tough and the road to success is paved with plenty of failures. 

There’s no denying that getting a start-up off the ground takes considerable time, effort and usually money.  Given what it takes to succeed, you’d imagine that entrepreneurs and seasoned business people alike would do everything to boost their chances of success, yet it’s surprising how often one crucial aspect of a start-up is overlooked.

Remarkably, many people don’t adequately protect their intellectual property by registering a trademark for their start-up.  While this is an optional step, failure to do so can put their investment and hard-fought achievements at risk and diminish future growth opportunities.

The simple truth is that trade-mark registration is an effective – and many business and legal professionals would say, essential – tool for success.

Why register a trademark for a start-up?

This article covers three main reasons why a start-up benefits from trademark registration.  These are:

• Copywrite registration provides enforceable, exclusive rights over the registered sign
• Trademark registration offers robust brand protection
• It creates a marketable commercial asset

The difference between a registered business name and a registered trademark

Most people register their new business name on with the Australian Securities and Investment Commission (ASIC) when they first embark on their start-up journey.  This is an important step as it prevents anyone else from obtaining the same business name. It is also a legal requirement to register a business name in Australia if the operator intends to trade under any name other than its legal name.

However, registering a business name does not give you exclusive rights over that name. In fact, when registering a business name with ASIC the registrant will be presented a ‘checklist’ (requiring each item be ticked off) before commencing the application that highlights, among other things, that business name registration does not provide rights or complete ownership to the name involved.

Business name, brand, product, logo

Only trademark registration does that. Whether for a business name, brand, product, logo, sound, scent, hologram or even colour, registering a trademark will provide you with exclusive and enforceable rights to use that particular sign.

It’s essentially proof of, and enforceable, ownership of a name or sign.

In rare circumstances, it is possible to take action against another entity without a Registered trademark.  In a situation where another business is ‘passing off’ as yours or is engaging in misleading or deceptive conduct (such as misleading customers that their business is actually owned by you), it may be possible to take action, but such cases are typically difficult to prove and usually require the business to prove a reasonable level of reputation in the marketplace.  It is far easier to establish when a business has infringed on your trademark rights.

A registered trade-mark offers greater brand protection

Without legally enforceable rights over a brand, you run the very real risk that a competitor jumps on your bandwagon, exploits your ideas and erodes your investment by using the same – or a deceptively similar, name.

When it comes to a start-up, it’s understandable that a lot of time and energy goes into priorities like funding and product development, but it’s crucial to focus on marketing and branding too.

Getting trademarks for start-ups can be a prudent move as it protects your brand, your reputation and the commercial viability of your business. It avoids brand confusion and prevents the hassle and expense of having to rebrand because you discover you have a confusingly similar brand name to a competitor which is costing you market share. 

If you don’t register a phrase, word, or symbol, you may also find you are infringing someone else’s registered company logo rights.  At the very least, start-ups are encouraged to undertake proper trademark searches prior to using a brand in the marketplace.

A registered trademark creates a valuable commercial asset

A registered phrase, word, or symbol can be bought or sold and can be an important commercial asset for a business, increasing its value, potential and saleability.  It can be licensed to others to use on your terms, which may result in a profitable income stream for you. A registered logo can also be assigned (transferred/sold) to a separate person or company.

In the early days of a start-up, registering a trademark may not seem like a priority, but it could very well influence the future of your business (and your investment returns) further down the track.  Registered Collective Marks will appeal to potential investors and/or buyers of your business because it sends a clear signal that you have a robust intellectual property and marketing strategy in place, and it means the appropriate protections are in place.  Plus, registered intellectual property can be monetized so it is commercially valuable.

If you’re starting a new enterprise, you may want to discuss your situation with an expert in the complex field of Collective Marks law to ascertain the best way forward.   They can help you answer questions such as:

·         Is my start-up eligible for a registered company name?

·         Am I at risk of my competitors using my logo if I don’t register it?

·         What kind of shelf-life does my intended it has?

·         How would international expansion affect my registration?

·         What is the cost of registering?

·         Can I manage the process myself?

The last word on why trademarks are so important for start-ups

Trademark registration can be beneficial for your start-up because it provides legally enforceable protection for your intellectual property.  It can also create a valuable commercial asset that can be traded or licensed.  

Start small, but plan to go up! 

Your start-up may be small in the beginning, but you wouldn’t want its growth curtailed, its success to stall or its future to fail because of a lack of adequate planning and protection.  It’s always best to seek expert advice upfront from a trade marks attorney who will guide you on the best way to safeguard your brand. 

We hope you found this guide on trademarks for start-ups helpful. You can search for a lawyer in Australia near you on our homepage by using our app.

Author Bio: Jacqui Pryor is a registered trade-marks attorney and has owned her own business, Mark My Words Trademark Services since 2011.

The post Trademarks For Start-Ups In Australia appeared first on Clearway.