There are many benefits of being a registered trademark owner. In this article, we will talk about the hidden benefits that most people are not aware of. After that, you will know why a business with a registered trademark would be easier to succeed rather than an unregistered mark.
Having a registered mark on file gives the business owner additional protections, including presumed ownership, and diminishes the burden of proof. It also assures those different organizations won’t have confusingly similar trademark and gives your organization selective privileges to work and market under a specific brand name. Furthermore, registered trademark holders have the authority to take legal action against counterfeit goods.
5 major trademark benefits of trademark registration are listed below:
Increase Business Value
One of the major trademark benefits is that it serves as an investment. It gives a solid ground for your brand building and accumulates its value as an intangible asset. Trademark the value of your business or brand by strengthening your ability to enforce your rights in the event of a dispute while also enabling your business to grow.
The more your business reputation grows, the more valuable your brand will be. Once your trademark got approved, you could add a trademark item to your business P&L account.
Increase Revenue
The businesses put a ® on their trademark, it is a formal way to notify the public that they registered and executed the trademark. How registered owners benefit here is that it gives a professional impression to customers and lets them know you run seriously on business and branding.
The intangible is more powerful than tangible things. With this positive impression and feeling, a trademark helps generate more revenue on both new and recurring.
A Registered trademark helps you stand out and distinctly identify your business. It also protects those profits and your market share from others that are eager to erode it.
Expanded Markets
When an established brand considers growing, it has the option of expanding an existing brand. Brand expansion is a brand’s strategy to grow its market share by establishing new consumer touchpoints, both digital such as Amazon, and in physical stores such as opening another branch countrywide.
Now, because establishing a new brand is often costly, brand expansion is a popular way to take full advantage of a brand’s growth potential. In brand expansion, the reputation and credibility of an established brand are used to introduce new product lines or sub-brands and thereby expand the brand.
Trademarks provide value beyond your core business. This value helps businesses expand their brands in the same industry or in a different industry, using the same trade mark.
For example, Starbucks is a world-famous coffee shop brand, it began its journey as canned drinks and then entered the energy drinks market currently. The brand has made a foray into another booming market by launching a new line of low-calorie energy drinks based on fruit juice and green coffee extract.
Collaboration with other Businesses
The collaboration with the brand could go in two ways, they are co-branding and brand licensing.
The concept of co-branding can be defined as the strategic alliance between two or more brands for creating a unique and specific product or service with the intention to attain a competitive advantage in the marketplace. There are many reasons why different companies opt for brand collaboration such as higher profits, increase in market share, increased brand reach etc.
Brand licensing is using the brand name of another firm on its goods or services. The process of licensing occurs when a brand-right owner (licensor) allows the brand user (licensee) to use the name of the brand on the licensee’s product or service for a fee, for a specific territory, and for a specific period.
For the details about both ways of brand collaboration, please refer to the article “Co-branding vs Brand Licensing”.
Strengthened Long-term Business prospects
From the above, you can see the capabilities that registration of trademark
offer to brands. When a business identifies, set, and achieves long-term business goals for success. It is a long way run, and the market keeps changing.
In the past, the business mainly trades physically. But in the recent decade, everything goes online marketing. We are not fortune tellers, no one knows the future change results.
However, registered trademarks strengthens the ability of the brands no matter it is growing offline, online, solo or in cooperation with others. It provides enough fixability of the brand development for the long-term business prospects.
For any information related to trademark registration, please Contact Us.
