Brand name is an appreciating intangible asset. We even protect our depreciating assets, then why not our brand name?
Toprevent the anti-competitive practices, to create fair competition in the market and to protect the interest of the consumers are the most important reasons why small, medium or big businesses should protect their brand name. We will understand this with an example –“Mwent to market to buy Ice Cream, he gets amazed to see so many shops in the market having big beautiful boards, M realized that these businesses are making huge amount of investment on advertising and maintaining the quality of their products they have named their businesses like “AwesomeIce-Creams”, “Durable Shoes” etc.,M noticed that those businesses were earning very well as they had a lots of customers,but they had no registerable brand name, few days later he visited the market again and found that there were five more shops with same name and similar looking boards, M got confused which shop he visited last time and ended up buying poor quality Ice Cream.On the other hand, the shop owner who tried his best to serve his customers with the best products ended up facing losses as many other customers like M got confused and purchased from other shops.”
Here this small incident which occurred with M shows us that why it is important to have a unique identity in the market where there are several competitors who are selling same/similar products, or services, having no unique identity may cause severe harm to the consumers as well as the businesses.
The incident shows us that how investment incurred by the business on advertising their products and maintaining the best quality products gets wasted as there are several shops in the market with similar names and the consumers are getting deceived.
Here are few pointers why a business should always strive to protect its brand name–
Advantage of exclusive use.
Getting registration over a brand name gives you an exclusive right to use a brand name with respect to particular goods or services. No one else other than you and without your authority can use a same or similar mark with respect to same or similar goods or services.
Protection of Goodwill.
For a business or a service provider Goodwill is most important asset. Goodwill is not created overnight.The business ownerundertakes hard work over the years to make his presence in the market and create trust among customers. The goodwill is always associated with a particular unique brand; people associate a brand name with a standard of quality.
Cost & Time Saving.
It is economical and time saving to get a brand registration ratherthan getting into a civil suit later to claim a name as yours. A proprietor of a registered trademark has an additional right to institute a suit if necessary.
Additional Rights to assign/transmit the rights like a tangible property.
The proprietor of a brand can exercise rights to assign a trademark to another person or entity, the assignment could be done with or without goodwill
Brand Name as an Identity of Goods/services
Brand names acts as identity of goods/services, consumers identify the goods and services from the Brand name only and consumers consider brand as a standard of quality.1