Every startup must take steps to register its Intellectual Property and to protect it from misuse. Intellectual Property will include their trade marks, copyright, designs, patents, etc. Intellectual property offers several benefits to a startup viz. competitive advantage, legal benefits, use for fund raising
Some of the benefits that registering a trade mark provide to startups are:
- Exclusivity: Trade mark registration confers upon the proprietor the exclusive right to use the mark in respect of the goods/services for which it is registered to the exclusion of all other persons.
- Goodwill: A trade mark if used properly and judiciously may result in creation of tremendous goodwill for the proprietor. At times, it is seen that the value of the goodwill far exceeds the brick and mortar of the company e.g. The goodwill and intangible assets of Coca Cola are in a few billions of dollars. A trade mark creates a brand image and identity.
- Identifies Source: The trade mark identifies the source of the products and services and, thus, informs the purchaser that the goods or services are being provided by a particular entity and it, therefore, prevents confusion between the goods of the proprietor and a competitor.
- Trust: A trade mark creates a relationship of trust between the customer and the mark.
- Quality: A trademark used on a product or for services indicates to the consumer that the goods/services being sold under the particular trade mark are of a certain quality and they can expect the same quality whenever they buy those products or use the services.
- Licensing: A trademark can be sold or licensed to another and is a potential source of income for the proprietor.
- Enduring: A trademark once registered can be kept alive in perpetuity by regularly renewing and using it.
- Protection: If the trademark is registered the proprietor can file a suit for infringement to restrain an infringer from misusing the registered trade mark.
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