Role of Trademark in Business

Trademark registration is very important asset in a global economy, and the value that the same has in a modern business environment is immeasurable and it might even reach several tens of billions of dollars, which speaks for itself in terms of its importance and need for its quality protection. At present, it is absolutely unthinkable to imagine business of a modern, large corporation without its trademark, and it can be even said that it becomes the easiest and the fastest way of communication between the manufacturers of goods, i.e. the service providers and those for whom such goods and services are intended, i.e. the end users.
Thus, the trademark protection understands protection of a mark suitable for distinguishing the same or similar goods or services and the same has to be graphically displayable. In general, it understands recognizable words, including personal names, drawings, letters, numbers, images, product shape or packaging, color arrangement, three-dimensional forms or a combination of these elements. When choosing a particular trademark for identification of certain goods or services, it is necessary to take into account its authenticity and expression, since a carefully selected and well-known trademark, which will be protected later, is a precious asset for any business. The reason is that consumers themselves value trademarks and they are willing to pay much more for a product bearing a recognizable trademark that meets their expectations. However, it is important to have in mind that the term trademark must be separated and strictly distinguished from the notion of brand and similar concepts. The brand, as a term, is defined in a way that includes a number of elements that can include the brand name itself, its appearance, and appearance of packaging, then packaging design, label, shape, advertising and promotional activities. Therefore, it can be concluded that while the trademark is exclusively related to law, on the other hand, the term brand is a marketing term. Therefore, the brand is a different and broader term than the trademark.
Furthermore, the main function of the trademark is to enable customers to identify the products and services of a particular company, making it different from other same or similar competing products and services. There is no need to emphasize the economic, legal and any other need for the trademark protection of a particular product since the numbers speak enough for themselves. It is believed that the value of the world's most famous trademarks such as Coca-Cola, Apple, Samsung and others exceeds the overall value of other companies and the same is measured in tens of billions of dollars.
The basic advantages of trademark protection are reflected in the fact that protected intellectual property, or a mark, becomes the subject of legal trade. In this way, the mark same becomes a growing value and therefore also increases the value of the business entity as a holder of that right. In addition, trademark protection contributes to the suppression of the grey economy and the suppression of unfair competition. Furthermore, this legal protection also acts preventively, and nobody can use the protected intellectual property without authorization of its holder.
In addition to all these advantages, the trademark protection represents a consumer protection tool as well marketing tool, but in addition it is a basis for establishing a positive image in the public. On the other side, the rightful ownership of a reputable trademark gives the company an immediate competitive advance. Ultimately, the right holder has the exclusive right to prevent other persons from using or advertising the same or similar product under the same or confusingly similar trademark, which, among other things, implies the right to prohibit other persons from unauthorized placing trademarks on the goods, its packaging or assets for marking of goods; offering goods, placing them on the market or storing them; import, export or transit of goods under the trademark; the use of a trademark on business documents or for advertising, and the like.
Bearing in mind the current relations in the world market of goods and services, the desire of "big players" to acquire an advantage in a competitive market, at any cost, without choosing the means to achieve their goals, then the leading idea of management of all manufacturers, traders, distributors and all other entities should primarily be the legal protection of such products and services obtained through the trademark protection. Only in this way there will be established prerequisites that a product or service become recognizable and attractive to end users, and in addition only in this way can be prevented possible negative consequences and damages that might arise from unauthorized use of protected goods by third parties. This is particularly related to the fact that a large number of products and services within the same market segment impose the need to be recognizable and easily identified in the minds of consumers and users, as it creates and reinforces customer's attachment to the same and achieves easier sales of such products.
23 aug, 2018

Category : SOCIAL MEDIA

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