Skip to main content

Trademarketing: Intellectual Property as a Branding Strategy

 



Trademark is the legal term for a word or phrase that distinguishes one brand from another and that customers rely on to know the source of the product.[1] If you are thinking about starting a business, consider these few simple steps for how to use the legal framework of trademark with a marketing perspective to get the best outcome for your new business.

Step 1: Naming Your Business

            One of the first steps[2] of launching a business is choosing a name. In that moment, the founder has a multitude of directions to choose from that could alter the course of success for the business. Whatever they decide will be the first impression customers have of a business or product. Should founders choose a literal, descriptive[3] name (such as “Detroit Automobile Repair”) to make sure their audience has a clear picture of what sort of business with which they are interacting? Or is it a better idea to choose a more arbitrary[4] or fanciful[5] name (such as “Apple” for electronics[6] or “Shell” for gasoline[7]) that does not impart any information to new customers but will ultimately stick in their minds?

If a business owner wants to protect their name from being used by competing businesses, it may try to register a trademark, which will be discussed more in depth during the second step. More unique words or phrases will receive stronger protection.[8]  This means that it would be easier to stop competitors from using similar names and will solidify a brand.

However, there is still a tradeoff when choosing a name. While the legal aspect is more secure, it could be a marketing risk to label a business as a seemingly random, unrelated word to the products or services they sell. But you could ultimately be rewarded when your brand becomes a household name.

A trademark is one of a company’s most valuable and important assets[9] since they give customers a first impression and have their own monetary worth. Starting off on the right foot can launch a business’s success. One can imagine a very different technological landscape if Google had decided to stick with their name idea “BackRub.”[10] Names matter, and trademark law recognizes that.

Step 2: Federal Registration

Registering your business name as a trademark with the United States Patent and Trademark Office (USPTO)[11] will give you the exclusive right to use that name, or in USPTO terminology, a mark, within a specific area of use in commerce.[12] The initial steps of registering a trademark[13] include potentially consulting with a licensed attorney, submitting filing paperwork, and paying the fees (starting at $225 for one category of goods and services).[14] It may be also helpful to browse through the USPTO’s numerous informational videos to gain an even stronger understanding.

Owning a registered trademark is not a requirement for running a business, but having the authority to put the “®” after the title gives a certain stamp of approval that customers may see as appealing, as well as other benefits the registration confers. However, not all names are registrable.[15] Primarily, marks that are already in use cannot be copied. The USPTO will consider if customers will likely be confused when deciding whether or not to register a mark that is similar to an already-existing one.[16] In order to avoid overlapping with an existing mark, anyone can use the USPTO’s database search feature[17] to find what is already out there. By taking this preliminary measure, you can avoid trying to register a name that will be an automatic “no.”

Apart from that basic tenet of trademark law, the hierarchy[18] of generic, descriptive, suggestive, and arbitrary/fanciful will also influence whether or not the USPTO will register a word or phrase as an official trademark. A mark that leans towards descriptive may be refused registration since it does not properly distinguish that brand from other brands.

Additionally, there are certain categories that the USPTO will outright refuse to register as a baseline matter. These include surnames, marks that are geographically descriptive of origin, foreign words that translate to a descriptive or generic term, and book or movie titles.[19]

Despite the legitimacy and legal security it provides, federal registration is not the end-all, be-all of entrepreneurship. Common law protection, a more informal framework, will still allow a business to operate with even the most basic name, such as “Coffee Shop.” The downside of foregoing federal registration is the forfeiture of the right to sue or otherwise prevent someone else coming to town and using your same name. It also only gives you a territorial right to use it, so you would be relatively stuck in a geographic location. Especially if a business sees a future strongly rooted in a certain community and does not mind allowing competitors to use its name, registration is optional.

 Step 3: Brand Maintenance

The good news about successfully registering a trademark is that protection is indefinite,[20] as long as a mark owner maintains certain upkeep. First, you must continue to use the mark in commerce.[21] Second, documentation is required by the USPTO after the fifth year, ninth year, and every ten years from there.[22]

            Aside from the legal paperwork, companies spend extensive time, energy, and money to craft advertising campaigns[23] to keep their name fresh in consumers’ minds and to stay relevant in an ever-changing world. If necessary, a founder can always go back to square one of re-naming and rebranding to rebuild their company with a whole new identity.

 By: Corinne Fombelle 



[1] https://www.uspto.gov/sites/default/files/documents/BasicFacts.pdf

[2] https://www.sba.gov/business-guide/10-steps-start-your-business

[3] https://www.justia.com/intellectual-property/trademarks/strength-of-marks/descriptive-marks/

[4] https://www.justia.com/intellectual-property/trademarks/strength-of-marks/arbitrary-marks/#:~:text=Like%20fanciful%20marks%2C%20arbitrary%20marks,no%20connection%20to%20the%20meaning.

[5] https://www.justia.com/intellectual-property/trademarks/strength-of-marks/fanciful-marks/

[6] https://www.apple.com/legal/intellectual-property/trademark/appletmlist.html

[7] https://www.shell.com/business-customers/chemicals/doing-business-with-us/trademarks.html

[8] https://cyber.harvard.edu/people/tfisher/IP/1976_Abercrombie_Abridged.pdf

[9] https://www.forbes.com/sites/seanstonefield/2011/06/15/the-10-most-valuable-trademarks/?sh=69d45b9236b8

[10] https://www.businessinsider.com/the-true-story-behind-googles-first-name-backrub-2015-10

[11] https://www.uspto.gov/about-us

[12] https://www.wipo.int/trademarks/en/

[13] https://www.uspto.gov/trademarks-application-process/filing-online

[14] https://www.uspto.gov/trademark/trademark-fee-information

[15] https://www.law.cornell.edu/uscode/text/15/1052

[16] https://www.uspto.gov/sites/default/files/documents/BasicFacts.pdf

[17] https://www.uspto.gov/trademarks/search

[18] https://www.inta.org/fact-sheets/trademark-strength/

[19] https://www.uspto.gov/sites/default/files/documents/BasicFacts.pdf

[20] https://www.ama.org/pages/what-is-a-trademark/

[21] https://www.uspto.gov/trademarks/maintain/keeping-your-registration-alive

[22] https://www.uspto.gov/trademarks/maintain/keeping-your-registration-alive#Deadlines-for-registrations-based-on-the-Madrid-Protocol%C2%A0

[23] https://www.businessinsider.com/10-biggest-advertising-spenders-in-the-us-2015-7



Popular posts from this blog

What's in a Name? A Short & Sweet Guide to Michigan's Entity Name Rules

  Part 1: Introduction You have decided to create a business entity in Michigan, congratulations!   One of the most important steps in entity formation is choosing a name—it tells the state and the public a lot about your business.   Maybe you already know what name you want to choose.   Maybe you are overwhelmed by all of the rules you have seen online.   Maybe you fall into both (or neither) of those categories. Keep reading to learn more about what you may and must include in your business’s name, what you cannot include in your business’s name, and where to find additional resources. Part 2: The Dos You May. . .             Often, the name is the first thing consumers see about a business.   Because first impressions are so important, it is a great idea for your business’s name to be a reflection of the service(s) you provide, your business’s mission, or some other related facet of your business. For example, under § 212(c)(3) of the Michigan Nonprofit Corporation Act,

A Breakdown of Fair Use

Is your small business trying to spruce up your website by adding some new pictures? Want to raise money for your nonprofit by hosting a community movie night? Trying to update your marketing materials with a brand-new promotional video with cool background music? If so, you could be opening yourself up to potential copyright lawsuits and should read up on the doctrine of fair use! An important aspect of starting a small business or nonprofit is exposure, and as organizations work to market themselves and increase awareness of their goals and activities in the communities they serve, they could open themselves up to legal danger. Litigation is expensive, and the cost can be especially devastating to small businesses and nonprofits. In all promotional or informational materials (including brochures, flyers, websites, etc.), organizations need to be sure that they are legally protected from copyright infringement claims.   What is Fair Use? Fair use is a legal doctrine that permits

Michigan Low-Profit Limited Liability Company (L3C): Mixing Social Impact and Profit

              Given the variety of legal structures, it is essential to pick the one that is best for your business and the goals you’ve laid out for them. And, in this age of conscious consumerism, businesses have looked towards merging both societal benefit and profit. [1] With that in mind, businesses are looking towards the sort of entity forms that provide a structure to achieve this dual-pronged purpose. One such entity in particular that has gathered attention is the relatively new statutory business entity the Low-Profit Limited Liability Company (L3C) . [2] An L3C is considered an entity for entrepreneurs who “value purpose and profits,” and is intended to provide entrepreneurs with the opportunity to form an entity that caters to both these goals. [3] The L3C is the states’ response to the demand of a growing number of social entrepreneurs that seek to combine the financial benefits of a traditional for-profit entity with the social benefits of a non-profit. [4] While th