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Benefits of protecting trademarks and trade names


Why should trademarks and trade names be protected?


Although the majority of companies understand the benefits of using trademarks to differentiate their products and services from those of their competitors, not all of them are aware of the importance of protecting their trademarks by registering them.


Registering a trademark gives the company the exclusive right to prevent third parties from marketing identical or similar products under the same trademark or using a similar trademark that could cause confusion.


If the company does not register the trademark, the investment it makes in marketing a product could be wasted, as its rivals could use the same trademark or a similar trademark that could cause confusion in order to market identical or similar products. similar trademark that could be mistaken for the original trademark If a competitor adopts a similar or identical trademark, consumers could buy the competitor's product by mistake. This not only diminishes the company's revenue and confuses the customers, but also damages its reputation and its image, particularly if the rival products are of inferior quality.


Given the value of trademarks and the importance that a trademark can have for a product's success in the market, it is crucial to ensure that it is registered in the relevant market or markets.


In addition, a trademark license can be granted to other companies, which would mean an additional source of revenue. Trademarks can also be the object of franchise agreements.


A trademark that enjoys a good reputation with consumers can also be used to obtain funding from financial institutions, which are increasingly aware that companies' commercial success is largely dependent on trademarks.


Trademarks and trade names:


  • Guarantee that consumers recognise products.


  • Enable companies to differentiate their products.


  • Are a marketing tool and help project a company's image and reputation.


  • Can be licensed and provide a direct source of revenue through royalties.


  • Are a determining factor in franchise agreements.


  • Can be important commercial assets.


  • Encourage companies to invest in maintaining and improving product quality.


  • Can be useful for obtaining funding.