The Top 12 Reasons to Protect Your Trademarks



A trademark is that word, phrase, symbol, logo or design that sets your goods or services apart and distinguishes you from all the rest. The “loud and proud” protection of goodwill being built in a mark serves many valuable purposes. To help me detail these reasons, I reached out to Tim Engling, an intellectual property attorney at the lawfirm Michael Best and Friedrich, L.L.P..

Below, Tim helps us to detail the Top 12 Reasons to Protect Your Trademarks:

1. A registration is an asset that delineates rights in a trademark by recording and securing exclusive rights to the registrant. A federal registration can be licensed or sold as property, and assignments, liens, and security interests can be federally recorded.

2. The registration process reduces risk for use-based or intent-to-use applications in two stages: first, with USPTO examination at about three months after filing and second, after allowance with publication for public opposition.  There is less risk in using a registered mark than one with untested and limited common law rights.

3. Only federal registration permits use of the circled “R” symbol, ®, adding a professional appearance and showing that a mark is important enough to protect, enhancing your brand. Without federal registration, only “TM” may be used, which is merely an assertion that the user believes it has trademark rights.

4. Constructive notice, whereby the public is deemed notified and aware that the trademark is in use, begins the date the mark is federally registered. Constructive notice may hinder parties from challenging your registered mark by limiting excuses.

5. With actual knowledge, competitors may avoid adopting conflicting marks. When adopting their own marks, competitors should search federal records to avoid selecting confusingly similar marks or would adopt new marks at their peril with inferior rights.

6. A registration will block registration of confusingly similar marks. The Trademark Office should reject confusingly similar marks from later registration, protecting your image.

7. Federal law allows for incontestability, the highest status of trademark protection. After five years of registration with proper conditions, no one can assert prior use nor can the registration be challenged on numerous other grounds.

8. Registration permits jurisdiction in U.S. federal court, where a judge may grant injunctions, award damages for infringement and – in some cases – recovery of legal fees and defendant’s profits.

9. A federal registration is presumed valid in legal proceedings with other evidentiary benefits. It provides evidence of ownership and the owner’s exclusive right to use the mark on registered goods and services. It helps prevail in trademark disputes.

10. Beyond federal court, a registration recorded with U.S. Customs may protect you by preventing the importation of infringing or counterfeit goods. Customs can seize counterfeit goods, impose fines and detain imported goods that infringe.

11. A federal trademark registration can also serve as a basis for obtaining priority and registrations in foreign countries.

12. Lastly, the cost is reasonable for these benefits. Typically, the cost for preparing and filing a federal trademark application in one class is about $1,200, and trouble-free prosecution through registration is about half that amount.

Federal trademark registration is a value-added proposition for companies and an area where investors evaluate risk, value, and prudent company procedures. So, it is both a benefit for the company, and protection for its investors.

This article was originally published on Red Rocket VC, a consulting and financial advisory firm with expertise in serving the startup, digital and venture community.

Image Credit: CC by opensource.com

About the author: George Deeb

George Deeb is a managing partner at Red Rocket Ventures, a Chicago-based startup consulting and fundraising firm with expertise in advising Internet-related businesses. More of George’s startup lessons can be read at “101 Startup Lessons — An Entrepreneur’s Handbook.”

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