Benefits of Trademark Registration

Federal trademark registration grants mark owners a series of advantages in regards to protecting the health of their respective mark. Though it is not an irrevocable force in terms of legal challenges, (common law trademarks used in a limited geographical area which does not cross state boundaries are difficult to litigate against), the federal trademark registry remains the primary format by which a business owner can elevate the effectiveness of their mark. The benefits a federal trademark grants a business owner can be organized into two categories.

1. Legal

2. A federal trademark grants the owner the ability to send demands to cease and desist to would be occupiers of the same or similar marks. Many offenders will cease and desist in order to avoid a potentially lengthy, and unfavorable, legal dispute.

3. If the dispute progresses, an owner of a mark can sue for damages, whether it be damages proportional to the inappropriate usage of their respective mark, or statutory damages for the initial abuse.

4. After five years of continuous use, the owner may file a Section 15 Declaration under 15 U.S.C. § 1065 to seek incontestable status. This narrows the grounds for challenge. It does not eliminate them: abandonment, fraud, and genericness remain available to a challenger.

5. Business

6. A federal trademark registration simplifies the process of selling products and services on online retail platforms, (i.e. Amazon), as the presence of the certified mark allows the platforms to better combat knock-off brands or inappropriate offenders.

7. Federal registration simplifies investment and expansion at an international scale, for the mark owners with such wide-net orientated business models.

8. The trademark, over time, becomes a business asset in its own right, and thereby its registration can serve as an investment, considering the increased value the owner of the mark can reasonably expect.

Though a business is perfectly capable of legally and successfully maintaining its operations without a federal trademark, the lack of such registration does limit the scope of the project, and any business owners attempting to expand beyond the horizons of a specific locality should definitely consider filing for an appropriate trademark.

For what registration actually lets you do in court, at the border, and on Amazon, see the enforcement and litigation advantages of federal registration.

Sari Law Firm advises businesses on trademark registration and enforcement across California and nationwide.