Trademarks offer not only legal benefits, but economic benefits as well. The following are economic benefits of trademark registration:
- A registered trademark protects your investment from infringement.
- A registered trademark is needed for growth and expansion beyond your region.
- A registered trademark is a valuable asset that can increase in value over time.
- A registered trademark can be an effective marketing tool.
- A registered trademark is needed when selling your business or seeking licensing agreements.
1. Protects Your Investment
As a business owner, you’ve likely spent much of your time and financial resources growing your business and establishing a strong reputation in your industry. However, if you’ve grown your business without a federal trademark registration, the investment in your brand may not be protected. If another business uses your business name, logo, or slogan without your permission, this could cause customer confusion in the marketplace and sway customers away from your brand and potentially damage your reputation.
In order to gain these valuable protections, you should register your trademark with the United States Patent and Trademark Office, or USPTO. A federally registered trademark will come with valuable legal protections against infringement on your business. Your registration from the USPTO will also ensure you are not infringing on another business, which provides peace of mind as you continue to build your brand.
2. Needed for Growth and Expansion
In the United States, an unregistered trademark has some legal protections simply by using it in the marketplace, but these protections are extremely limited. For instance, business owners with unregistered marks could face challenges when seeking legal action against infringement. Your mark would only be protected against disputes that arise in your small geographic area as well. This means that if you offer your product or services online, or if you wish to expand your business offerings outside your region, you could face the potential of infringement if your mark is already in use by another business in the area.
A federally registered trademark, on the other hand, offers the economic benefit of providing the presumption of nationwide validity. Registering your mark with the USPTO provides essential protections against infringement anywhere in the country, not just your region. You can freely grow your business and expand to other areas without the fear of infringing on an existing mark. A federally registered trademark also provides a springboard to international trademark registration, a necessity when entering new markets outside the U.S.