A trademark distinguishes a company’s goods and services from those of others. International trademark registration offers several advantages over national registration. This blog discusses international trademark registration’s ten main benefits.

Why Trademark registration is important?

• If you want your company, brand, product, or service to stand out, register your trademark.
• Registering your trademark eliminates the risk of having to rebrand due to a copycat.
• To protect your intellectual property and rights, register a trademark.
• Every aspiring entrepreneur should know the many benefits of trademark registration.

The Top Ten Reasons Why You Should Register Your Trademark

1. Exclusive Rights

The trademark owner has sole control. All products in the application’s class(es) can use the same trademark. The trademark owner can also prevent others from using it in its registered class(es). The owner can also prosecute unauthorized infringement.

2. Builds Trust and Loyalty

Trademarks represent a product’s quality. Market customers trust trademarks. It also helps build loyal, long-term customers who prefer your trademarked brand.

3. Sets It Apart From Competitors

Customers will have an easier time locating your goods when you register your trademark. It helps your goods stand out from the crowd while also promoting your business. This is so because the trademark or logo you’ve worked so hard to create is a reflection of your company’s mission, standards, and special qualities.

4. Identifies Product Quality

Proof of your product’s value and worth may be found in international trademark registration. This is because a product’s reputation for excellence is tied to its brand name in the minds of consumers. In addition, brand awareness helps bring in new clients who, unconsciously, make snap judgments about the quality of a business or brand based only on its logo.

5. Creating Assets

When a corporation registers its trademark, it gains a valuable asset: intellectual property. A trademark registration is a legal right that may be licensed, sublicensed, or otherwise economically contracted. A trademark also serves as an intangible asset on a company’s balance sheet, affording the business all the advantages that intangible assets typically provide.

6. Authorization to Publish the ® Mark

In order to show that your trademark is unique and protected against imitation, you may use the ® sign on your logo after it has been registered. You can sue if someone uses your trademark without permission.

7. Prevent Infringement

The owner can get an injunction against someone who uses a trademark without permission or in a misleading way. Competitors cannot use your trademarked logo.

8. 10-Year Low-Cost Protection

Registration of a trademark is cheap and secures your company’s identity in the marketplace. Maintaining an online trademark registration is simple and cheap. The only costs associated with trademark registration are the initial filing fee and the renewal filing fee that is payable every ten years.

9. Global Trademark Registration

If you want to expand outside of India or register a trademark in another country, a trademark registered in India can help you gain international recognition. Due to its goodwill, an Indian trademark can be used to register in another country. 

10. Draw HR

Well-known companies often have an easier time recruiting young people. In addition, bright young people choose to work for big companies because of the security and advantages they provide. The act of registering a trademark reflects well on a company. In addition, this reduces the cost of recruiting and associated activities.

Any type of license to run a company and offer services is referred to as a “business license.” Governmental institutions at the local, county, state, and federal levels grant different kinds of business licenses. Financial licenses and other types of agreements may be required to guarantee you abide by industry laws or to register your company with the government for tax purposes.

Depending on a business location and what kinds of goods and services an entrepreneur offers, they may or may not need to obtain any form of license for legal operation.

Types of Licensing

Companies might need to get one or more of the following business licenses to sell their products and provide their services legally:

• Business operating license. Most amateurs and experts refer to this one, while talking about “business licenses.” In some countries, companies need this document to conduct business in their state or on the local level – but in the UK, they are not required.  In the USA and other countries, sometimes you may receive a business license from the state, but in some cases, you may also need one from your city or country (it depends on the state where the company is based).
• Industry licenses. To provide services in fields, such as electricity, childcare, medical, and law, business owners also need to obtain a specific license.
• Federal licenses. Certain sectors are subject to government regulation, including the sale of alcohol, guns, and aircraft. These industries are listed in legal documents. It’s important to notice that federal licenses are US only.
• DBA (“Doing Business As”). This document allows businesses to provide their services under a name that is not officially registered as their business name.

What’s more, there are trademark licenses that can become an arrangement wherein a licensee receives the rights to use that property in connection with goods or services from a licensor. Most companies from large enterprises to the smallest businesses use licensing as a marketing and brand expansion strategy. Consumers are most aware of licensing in the fields where copyright is essential, like sports and fashion, but the industry also includes corporate brands, publishing, non-profit organizations, etc.

Advantages and Disadvantages of Licensing in Business

Special permits and federal licenses are documents that are required for businesses for operation, which means that companies cannot work legally without these permissions. Trademark licenses, on the other hand, are optional, and some entrepreneurs don’t issue them considering it will save them money. However, those businesses that have obtained these documents get many benefits:

• Risks are decreased. The purpose of licensing is to lower the risk that comes with conducting business for all franchise parties. Risks in product creation, market testing, production, and distribution get much lower, which brings extra benefits to licensees. Licensors feel more confident while selling and providing their goods and services.
• Entering overseas markets is simpler. It becomes easier for the licensor to introduce their product to other continents than it would be for them to do it alone. This makes it much simpler to reach global markets because the obtained document permits the intellectual property to bypass border restrictions and gain an extra competitive advantage.
• Marketing is more effective. Licensing may enhance the way your intellectual property is marketed, ensuring better brand awareness. For example, a local company probably understands its market better than a huge international corporation, ensuring better revenue for both sides. Due to it, entrepreneurs don’t have to carry out individual market research to conduct profitable marketing campaigns.

To achieve these benefits without extra license fees and ensure intellectual property protection, contact experts from Thales Capital:

Phone: +35220334030

Email: structuring@thales.lu

Address: 2 Place de Strasbourg L-2562 Luxembourg

Nonetheless, licensing has some cons businesses should consider beforehand. The fact that such a document is issued for a limited time is one of the most essential disadvantages. That’s why both parties must understand if they are ready to spend their time and money on the partnership lasting for 5 or 10 years and discuss the possibility of license renewal after the approved period.

Factors to Consider When Licensing

While licensing, both parties must control:

• payments and royalties for products and services;
• how long the relationship lasts;
• how quality control is achieved;
• performance requirements;
• ownership.

Taking these factors into account ensures fewer risks to both parties and reduces an extra cost.

Summary

All in all, measuring all the pros and cons and studying contract terms thoroughly is essential when licensing. Risks decrease, and an arrangement may be beneficial if the licensee is reputable and all the factors are discussed before issuing a patent.