Understanding Trademarks We will be looking at what trademarks are, their function and value from a business perspective, why it is important to protect your trademark and various other practical aspects related to the registration and enforcement of trademarks.

The importance of Trademarks Trademarks are an extremely valuable asset that not only help sell a business’s products or services but also have tangible value. For many, a trademark is the means by which the customer identifies and distinguishes the products or services of one company from those of another.

We are Surrounded by Trademarks We encounter thousands of trademarks each day…from the closet to the kitchen, on the way to school, in the newspaper, in magazines, on TV and radio, in supermarkets, restaurants, and shopping malls.

So what is a Trademark??? A trademark protects a word, a symbol or a combination thereof used with in connection with a product or service in the marketplace. It is often referred to as a brand. Some countries also allow the registration as trademarks of nontraditional marks such as sounds, colors, slogans, product configurations or shapes. Trademarks are also territorial (with certain limited exceptions for very famous marks), and so, again, generally action to obtain and protect trademark rights must be taken in each country of interest. Trademark rights may continue indefinitely as long as the mark neither is abandoned by its owner nor loses its significance as a trademark by becoming a generic term (e.g., escalator, linoleum, zipper). Trademark rights usually are acquired through registration, although, in some countries, rights in trademarks can also be obtained just by use – these are called common law rights. Rights in a registered trademark are granted for a fixed term, which can be renewed for further fixed terms.

What is a Trademark?? Word Symbol Slogan-- Just do it Product Packaging Color

Service mark A service mark is, therefore, similar to a trademark, but it is used in connection with services to identify and distinguish the services of one source from those of others.

Trademark vs. Business Name Business Name identifies a company or business. – Example: The Coca-Cola Company which has several different brands for its soft drinks, energy drinks, juices, coffee drinks, mineral waters, etc., such as SPRITE, FULL THROTTLE, DASANI and so forth. Trademark: identifies the goods or services of that company Example-------

Choosing a Trademark name The categories of distinctiveness, ranked in terms of strength from greatest to weakest, are as follows: (a) Fanciful Marks: created from words that are coined or made up and that have no meaning in relation to the goods or services with which they are used. (Examples: HÄAGEN-DAZS for ice cream; EXXON for petroleum products.) (b) Arbitrary Marks: created from existing words but have no meaning in relation to the goods or services. Fanciful and arbitrary marks are easier to protect but can be more expensive to promote. (Examples: APPLE for computers; TIDE for detergent.)

Choosing a Trademark Name (c) Suggestive Marks: suggest, rather than describe, the goods or services or some characteristic thereof. The consumer must use imagination to understand the connection. (Examples: BURGER KING for quick-service burger restaurants.) Although suggestive marks are self-advertisers and, thus, easier to promote than arbitrary marks, they are subject to more conflict and may be afforded a narrower scope of protection. (d) Descriptive Marks: describe either the goods or services or a characteristic or quality thereof. (Example: AMERICAN AIRLINES for airline services.) Included in this group are (1) laudatory words that attribute superiority to the goods (e.g., GOLD MEDAL and SUPREME), (2) geographic terms and (3) surnames. They are difficult to enforce unless the owner can show that the mark has become distinctive as applied to the goods or services.

Choosing a trademark name (e) Generic Terms: consist of the common name of the goods or services to which they are applied. They are not capable of acquiring secondary meaning when used in their generic sense, and, thus, are not protectable as marks when so used. (Examples: computer, automobile, shuttle.)

Choosing a Trademark name

Why are trademarks important for consumers and businesses?

Consumers As a consumer a Trademark provides us with valuable information. They are our source indicators that allow us as consumers to know what to expect in the quality of a product or service.

Allows us to buy with the assurance that we are getting products or services we liked in the past to avoid those products in the future.

Businesses As a business this can be the most valuable asset. They stand as emblems of a company’s reputation Often a Trademark is a sign of trust and loyalty that encourages sales.

Value of a Trademark A marketing tool Source of revenue through licensing Crucial component of franchising agreements Credibility in the Market

The value of trademarks Apple $ 659 billion Starbucks- $ 94 billion Nike $ 112 billion

So what does it really offer? Exclusive rights preventing others from marketing products under the same or confusingly similar marks Secures investments in marketing efforts Customer loyalty Reputation