What Exactly is a Trademark and Why is it Important?

According to WIPO (the world intellectual property organization), there are more than 13 million trademark applications filed each year. In 2020, that number was 17.2 million marks in individual classes. After all, trademarks are how consumers, whether businesses or individuals, recognize the products or services they are buying.

There are more trademarks in use today than there were historically, and the more consumers get used to having specialized products or services there will be many more in the future. The metaverse will open up a new way to look at trademarks, trade dresses, patents, and copyrights. When you drive down the street and see the yellow arches, who does not immediately think of McDonald’s? The name does not have to be written; consumers immediately recognize this brand. This is what a strong trademark is!  

McDonald's, Amazon, and Google are all famous trademarks. Companies, individuals, and entrepreneurs should be aware that trademark protection is essential to protect their brand from other people trying to steal it from them. This article will go into detail about why a trademark is necessary and how to go about getting one.

Trademark, Copyright, Patent, and Domain Name - What is the Difference?

Trademarks, copyrights, patents, and domain names are all types of intellectual property; however, they protect different elements or types of intellectual property. It is crucial to know the differences between each of these types of IP. Usually, businesses have one or more variants or combinations of these intellectual property assets. This is all about building the optimum intellectual property portfolio to protect yourself from others taking credit for your trademarks, patents, copyrights, and domain names, which are your original works. To get protection for trademarks, copyrights, domains, and patents, intellectual property owners will want to register the IP in the country where they are going to do business. They must find the right place to do this and follow the local laws on how to file and protect trademarks, how to file and secure patents, how to file and preserve Copyrights, and how to obtain a country-level domain name. We will be going over what each of these IP assets protects.

What is a Trademark?

A trademark can be a phrase, word, symbol, or design. A trademark can also be any combination of these. It helps to distinguish the goods of one company from those of another. Trademarks usually help customers identify the brand and aid the brand stand out from the competition. A service mark is just like a trademark, but it is used for a service instead of for a product.

Learn more about the difference between trademarks and service marks here.

Trademarks - Interesting History

In ancient Greece, potters used symbols on their pottery items to distinguish who made them. While this is not specifically all that trademarks are, the essence of functionality was there even in ancient Greece.

The Romans in the Middle Ages would have marks on their guilds to guarantee the origin of the goods and their quality. While this was only on guilds that were essentially the inception of trademarks, it is interesting to note that some marks used on guilds in the Middle Ages are still in use today, such as the hallmark for gold purity.

Recent excavations in Egypt revealed bricks and masonry, which bear the quarry marks and the stonecutters to recognize the source of the stone and the laborer who carried out the work on that. This was more than 6,000 years ago! This is one of the first trademarks in North Africa and Middle Eastern countries.

Trademarks were also found in China on ancient Chinese artifacts which were excavated. The Chinese trademarks on artifacts also aimed to show who the manufacturer was.

Great Britain was the first to put through trademark legislation that obliged every baker to put a mark on the bread baked by them; The Bakers’ Marking Law, enacted by the British Parliament in 1266.

Trademark legislation has long been updated since then, and most countries followed suit with a complete trademark law, which is being updated and refined to cater to the changes happening in societies. Legislative officers nowadays are considering how trademarks can be applied to the metaverse, NFTs, and the blockchain, how to protect fluid trademarks, etc.

To protect a trademark in our day and age, it is important to choose the country you are interested in and register the trademark for protection there.
 

Trademark Types

There are different types of trademarks, as we have outlined below:

Trademark type depending on the underlying protection required:

1.     Trademarks - protect goods.     
                                                                   
2.     Service marks - protect services.                                                 

Trademark Formats

1.   Trademark in standard character format

Most trademarks in the United States are registered in standard character format that provides the broadest protection. A trademark in standard character usually protects the words, letters, numbers, or a combination of those without any limitation to a specific font style, size, color, or design. In other words, standard character trademarks protect the words themselves and are not limited to a particular font, style, size, or color.

Examples:

• Adidas
• NIKE
• Under Armour
• I’m lovin’ it!

2.   Trademark in special form format (stylized trademarks)

Trademarks registered in distinguished form protect trademarks that are stylized, have designs or logos, or are in color. Protection of stylized form assures the way a trademark specifically looks.   

Stylized trademarks can be: 

1. A combination of words and a logo as trademarks:         
2. Shapes as trademarks:                       
    
3. Letters and words as trademarks:              
    
4. Slogans as trademarks:             
5. Logos as trademarks:         
6. Product shapes as trademarks:        
    
7. Pictures as trademarks:          
    
8. Fictional characters as trademarks:          
   
    

3.   Non-traditional trademarks:

1. Sound as trademarks
2. Smell as trademarks
3. Colors as trademarks
4. Motions as trademarks
5. Textures as trademarks 

What is a Copyright?

Copyrights are intellectual property rights that protect original literary or artistic work. When you are dealing with copyright, it is different from a trademark. Copyrights relate to a book, a painting, a song, a dance, or software. Copyright protection is governed by copyright law which is completely different from trademark law.

What is a Patent?

A patent is also different from a trademark. It is used to protect an invention, which has to be Novel, Useful, and non-obvious. If a person makes a new product or service, they will want to patent it so that other people are not able to steal their idea from them and use it as their own. Patent laws are very different than copyright laws and trademark laws.

What are Domain Names?

Using a domain name is also different than a trademark. A domain name is your web address, which you purchase from a domain service provider. This address links to the internet protocol address also called an IP address. The domain name is registered so that there is a web address, whereas a trademark is registered to protect goods and services. In some countries like Saudi Arabia, to obtain a country-level domain name .sa or .saudia, protecting the trademark locally is a requirement that can only be circumvented if the domain name will be protected in the name of a local entity with a commercial register or trade license.

Are Trademarks, Copyrights, And Patents Interchangeable?
 

No, trademark, copyright, and patent protection are not interchangeable. Each one covers its own set of protection and is governed by a different set of laws. Let's take Google, for example, their trademark protects the name, slogan, logo with different colors, etc. on the services they render and the goods they provide, such as phones. Google patents relate to the search engine, google home, how the search engine ranking works, and the Google car, phone, etc. all the crazy and interesting work coming out of google in terms of novelty. The domain name is www.google.com. Finally, Google’s copyrights relate to other software which was not protected as a patent. A company building a timeless IP portfolio chooses to protect its IP assets in multiple forms, to protect its key assets from multiple angles.

Are Trademark Expenses Tax Deductible?

Depending on who you ask, you will receive a different response, as the answer will depend on whether you are a company or not. If you are a company, you can deduct legal fees and trademark costs from your income to get taxable income. This is not necessarily the best way to account for trademark protection when compared to capitalizing on the cost of trademark protection.

How are Trademarks Used? 

This is what a person will use to give identity to their goods and services. It helps to fight fraud and protect their brand. They want to stand out from all of the competition that they face. The trademark will give them the confidence that they need to move forward with their goals. Google is a trademark as well as McDonald's, Apple, and the NBC Peacock symbol. 

Trademark - Where To Start?

How to Trademark a Name, a Logo, a Business Name, or a Phrase?

As a start, once you identify the business you have, you need to decide:

• The name you will use as a brand for consumers to identify your business.
• What the business will be doing, and what the brand will be used for:
  1. Will you have a retail store and provide retail store services?
  2. Will you build an app and provide software solutions?
  3. Will you build software and provide software as a service?
  4. Will you develop your unique beverage and sell it in supermarkets?
• The classes your products and/or services fall under.
• The type of trademark you would like to protect:
  1. Wordmark
  2. Figurative mark
  3. Combination
  4. Slogan
  5. Picture
  6. Color
• The country you will operate in.
• The documents required.
• To start the filing process.

ARE YOU READY TO START YOUR TRADEMARK FILING? 

Are Trademarks Registered?

Yes, trademarks can be registered, but registration is not provided automatically. A trademark owner has to file for a trademark and have the trademark office examine and to decide whether the trademark is accepted or not. Depending on what country you would like to protect your trademark in, there are different authorities responsible such as:

1. USPTO -> United States
2. ITIDA -> Egypt
3. SAIP (Saudi IP Authority) -> KSA
4. UAE Ministry of Economy -> UAE

Once a trademark is registered at the trademark office, it usually lasts for ten years. If a trademark owner wishes to renew the trademark, trademark renewal can be filed in 10-year increments. The duration of trademark protection depends on the country of interest.

Can a Trademark be Transferred?

Yes, a person or company may transfer a trademark. This is usually best done when the trademark is registered to avoid complexities.

How do Trademarks Work?

The trademark is registered to protect the goods and services of a person. It can be a mark that uses a symbol, words, name, or a logo of some sort. A person will have the legal right to file court proceedings if someone infringes on their trademark.

Trademark vs Brand

Your brand represents your reputation and business in the public eye, whereas a trademark is the legal protection of these aspects that are specific and unique to your company. Many people interchange the use of trademarks and brands, and it is understandable why, but it is crucial to differentiate the two to remember what parts of your brand are legally protected and monopolized and can be capitalized on, and what parts are not. A quick and simple way to remember this is to remember the "all-but-not-all" rule, whereby all trademarks are brands, while not all brands are trademarks. Since trademarks are aspects of your brand which are specifically protected in a country to cover a specific list of goods or services and maintain trademark protection and legal ownership, a trademark owner should pro-actively apply to register or renew their trademark upon expiry. Regardless of whether a trademark is composed of an image, a color, a word, or a combination, a trademark has to be registered and renewed to remain enforceable. Registration takes place in each country/region independently. Make sure to register your trademark in your biggest demand and supply markets, such as the United States, Europe, Turkey, China, Egypt, or Saudi Arabia.

Can Online Trademark Engines be Trusted? 

Well, we are biased and cannot speak on behalf of all online trademark service providers. What we can tell you is that having a tech tool, that assists with trademark applications works to a trademark applicant's advantage as it decreases human errors. Our software is trained to assess issues that take place during the filing of the application and concerns examiners raise when the trademark is being examined.

What Trademark Symbol to Use?

Taking the proper steps to register a trademark is very important. A person wants to make sure that they follow the process completely. Once the trademark has been registered, a trademark owner can use the ® symbol to denote registration. A TM or SM can be used for marks in the process. Refer to our blogs on trademark symbols. Be careful because, in some countries, using the wrong symbol and misleading the customer into believing your trademark is registered when it is not may lead to legal action and false advertising claims.

When is a Trademark Canceled?

There are several reasons why a trademark may be canceled. It can relate to the lack of a trademark renewal application, a court action due to a claim against the trademark by a third party, the lack of submission of use documents, and the abandonment of a trademark by failing to respond to the office, actions or oppositions issued. There are different reasons trademarks may be rejected, and this is country specific. Refer to our guide on: trademark registration in the USA for more information on trademark office actions issued in the USA.

When does a Trademark Expire?

A trademark will last ten years. There is a possibility of extending the trademark in a renewal every ten years. During the 5th and 6th years, a person should file an affidavit. This affidavit will state that the mark is still in use. People want to make sure that they follow the rules set up for trademarks so that they can be sure to keep theirs if that is their intent. The duration of trademark protection depends on the country of interest.

When is Trademark Not Infringed?

A registered trademark gives its owner the right to use the trademark on the goods and services in the registration. If someone uses the same trademark or a confusingly similar mark whether accidentally or not, they may be liable for legal issues. Since trademark infringements are urgent, anyone wishing to use a trademark should search the register to check for similar or identical trademarks to stay away from deceptive trade practices.

Where to File a Trademark?

Depending on which you do business, you will file the trademark for protection in the country of interest. Trademarking a name means that other people will not be able to use it for their gain.

What is a Trade Name? 

A trade name is the legal name of the legitimate entity you set up to conduct your business. The trade name can be identical or different from the trademark.

Trademark VS. Trade Name

When people think of trademarks vs. trade names, there can be some confusion as to how they differ. That is because sometimes the trade name is part of the trademark for some trademark owners. The general rule is that they perform different functions. The trademark is used to show the source of the services or goods so that they are protected from theft. The trade name is used to identify the company and give its name recognition to the public. A trade name is Walmart because its legal name is Wal-Mart, Inc.

If a company is registering its tradename as a trademark, it can choose to include its corporate structure within its trademarks; for example, in Walmart’s case, they would have registered the trademark as Walmart Inc. While this is possible, it is limiting, especially if you are in the early days, and the structure of your business might change. For example, you may choose to transform your company from an LLC to a Corporation. So as a general suggestion, if you are looking to protect your trade name as a trademark, try not to include the legal structure of the company.

Conclusion

The intellectual property laws are there to protect businesses and brand owners, so others can not infringe on their rights, creative ideas, names, or symbols. Trademark law is also there to protect the consumer by providing him with accurate information on the source and quality of the underlying goods and services. Understanding the intricacies of trademarks will be very helpful when brand owners are starting their branding and marketing efforts. Trademark filing and trademark renewals should be done in different countries, depending on where you operate.