5 Benefits of Trademarking Your Business Name
Your business's name is one of its most valuable assets. In this guide, we'll tell you why trademarking your business name is extremely beneficial.
Are you a new business owner debating whether you should register a trademark for your business name or logo? Or are you a business owner thinking about protecting your intellectual property now that you have established your business? Regardless of which stage or field you are at in terms of your business, trademarking your business name is always beneficial. Registering for a trademark in Australia will give you an exclusive right to their usage and provides your brand with protection. In this article, we’ll outline the benefits of registering a trademark for your business name.
1. Exclusive rights and ownership
Trademarking your business name allows you to ‘own’ the mark unique to your business and you will have exclusive rights to use the registered name or logo. You have the right to use a registered trademark for commercial purposes. This allows you to use your trademark as a valuable marketing tool. A trademark is your brand identity and a tool your customers will use to identify your business or products. Therefore, it is essential that you protect your brand and the reputation it attracts through trademark registration.
Registering a business name if you are a sole trader will also prevent others from registering this name. However, it will not necessarily be protected on your other IP assets. Similarly, if you have registered a company, protecting your business number as a trademark will secure your business.
2. You’ll avoid infringement claims
Registering a trademark will protect your brand against unauthorised use of your registered trademark. A successful registration indicates the unique trait of your brand. So this significantly reduces the risk of infringing on another person’s registered mark. You wouldn’t have to worry about fighting infringement claims with a registered trademark.
3. Trademarking your business name will help your business grow
A registered trademark symbolises the value and reputation your business has garnered. This will attract buyers who are likely to pay a premium price for the security and reputation that comes with a registered trademark. In addition, the registered trademark allows your agents to use your name or logo legitimately if you are planning on expanding your business through franchising.
4. It will protect your brand identity
Registering a trademark will distinguish the products or services provided by your business from your competitors within Australia. Trademarks do not protect business ideas. However, if your unique idea is embedded in your trademark, then people are more likely to associate your business with it.
- It’s likely that you call adhesive protective plasters ‘Band-Aids’. Though this has become the common name for this type of bandage, ‘Band-Aid’ is actually a name trademarked by Johnson and Johnson.
- The term ‘Bubblers’ for a drinking water fountain is actually a word which was trademarked by the Kohler Company.
5. It will prevent competitors from copying your brand
Having a successful business can easily attract people who will try to take advantage of your reputation in the marketplace. This can deceive your customers into believing they are purchasing a product or service associated with your brand. Registering for a trademark under the Trade Marks Act 1995 (Cth) will prevent others from registering a trademark that is similar to yours. Further, protecting your brand with a trademark will allow you to challenge and sue for infringement in case of any violations.
Registering your business name will prevent others from using it. However, a trademark will protect it in other ways. Further, having a registered trademark means you can continue building your business with peace of mind.
Anjaly is working in our Content Team as a Legal Tech Intern. She is currently studying a Bachelor of Laws and Bachelor of Science at Macquarie University. She has a particular interest in Intellectual Property Law, Employment Law, and exploring how technology can improve access to justice.