5 Costly Consequences of Not Trademarking Your Brand

Why Registering a Trademark is a Smart Investment for Your Business

Protect your brand - or pay the price later. Trademarks can seem like an unnecessary expense, particularly for small businesses and start-ups. But skipping this crucial step could cost you far more in the long run. Let's break down what Trademarks are, why they matter, and the risks of not registering them.

Binh Rey | General Manager, Applied Marks | Registered Trademark Attorney

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What is a Trademark?

A Trademark is a give you the legal rights to use your brand. It protects your business name, goods, or services, granting you exclusive rights to use, license, or sell them for commercial purposes. Essentially, it ensures that your brand remains uniquely yours.

Take, for example, the trademarked brand Cleardocs, owned by Thomson Reuters (Professional) Australia Limited. This trademark protects the use of "Cleardocs" for specific services in Australia, including:

• Class 35: Business management, administration, and office functions
• Class 36: Insurance, financial, and real estate affairs
• Class 38: Telecommunications
• Class 42: Legal services and computer programming

This protection means no other company can legally offer similar services under the Cleardocs name.

What Can Be Trademarked?

A Trademark isn't limited to just logos or names - it's a representation of your brand, whether visual, textual, or even sensory. Common examples include:

Words: NIKE , MC DONALDS

Phrases: JUST DO IT (Nike's slogan), I'M LOVIN' IT (Mc Donalds slogan)

Logos: Nike has a "swish logo" and Mc Donalds has the "Mc Donald's M arches" logo.

 

• Unique packaging styles, and shapes:

  Coca cola bottle (shape mark)

  Happy Meals box (packaging styles)

• Other interesting protection include "sound mark","smell/scent" mark, and "movement" mark

  Sound mark: Netflix musical score played every time you logon to your Netflix subscription

  Smell/scent: Golf tees with eucalyptus scent (produce by E-Concierge Australia Pty Ltd)

  Movement mark: BBC intro/outro for their news programs videos.

Since branding differentiates your business from competitors, a registered trademark is one of the most valuable intellectual property (IP) assets you can own.

Why Trademarking Matters Early

If you've started - or are planning to start - a business, chances are you've already created some IP, whether that's a business name, logo, or unique product. Protecting these assets through Trademark registration is vital.

Failing to do so can lead to several costly risks:

1. Copycats Stealing Your Brand

   Imagine someone else registers your brand name before you do. While you might invoke the "First to Use" rule in court, the process is costly, stressful, and time-consuming. Legal battles require Trademark lawyers, and their fees add up quickly.

2. Costly Rebranding

   If your brand name use is challenged and you lose - or decide not to fight - you'll have to completely rebrand. That means new:

   • Business cards
   • Websites
   • Marketing materials
   • Signage for office, cars and exhibitions

   Rebranding isn’t just expensive; it also disrupts your business.

3. Loss of Reputation

   A competitor could hijack your name and tarnish your reputation by offering inferior products or poor service. The result? A damaged reputation, loss of customer trust, and declining sales.

4. Lost Time

   Dealing with trademark disputes drains your time—time better spent growing your business. Tasks like liaising with lawyers, redesigning materials, and updating contracts could cost you weeks or months of productivity.

5. Complete Business Loss

   The ultimate risk? Losing your business entirely. Take the example of Australian company A-sashi, which lost a legal battle against Nestle over a trademark dispute. After a three-year court case, A-sashi shut down, leaving its owner unemployed without a business to run.

   Link to A-Sashi case: A-Sashi case

   Don't let this happen to your business.

How to Protect Your Brand

Protecting your brand is one of the smartest moves you can make. A strong brand is your most valuable intangible asset. That's why partnering with experts like Applied Marks can simplify the Trademark registration process.

Applied Marks helps businesses:

• Identify what to Trademark
• Determine the right protection classes
• Decide which entity should own the Trademark

Since 2008, Applied Marks has assisted over 10,000 businesses with their Trademark applications. As experienced Trademark Attorneys and part of IPH Limited group (listed on the Australian Stock Exchange: IPH.AX), they ensure every application submitted and thoroughly reviewed before submission.

Your Next Steps to protect your Brand

Don't gamble with your business's future. Protect your brand, secure your reputation, and safeguard your growth by registering your Trademarks early. Visit Cleardocs to learn more about Trademark protection with Applied Marks.

Take control of your business destiny - start your Trademark journey today!