Building a unique brand
is essential for every business, be it involved in manufacturing, distribution
of products or delivery of services. Businesses rely significantly on their
brand value and reputation for commercial growth and consumer base expansion.
However, more than establishing a brand, it is important to get its exclusive
proprietorship. Intellectual property is one of the most crucial asset of a
company which makes it imperative to protect it and safeguard it against
unwarranted use and wrongful gain. Even if a brand is capable of defending
itself against exploitation by unscrupulous competitors, it is necessary to
seek as much legal protection for the established goodwill as possible.[1]
Recently, Suresh Prabhu, Minister of Commerce and Industry, also commented on
the importance of IP protection for effective brand building.
The misconception that
trademark registration is useful only for MNCs and large corporations is
widespread and for that reason many small businesses and entrepreneurs are
discouraged to protect their businesses’ intellectual property. They fail to
recognize the benefits of registration, like the financial benefits which include
opening up opportunities for licensing revenue, franchise, increased exit
valuations and increased borrowing prospects, that are possible with formal
registration which gives legal reinforcement to a company’s use of their
intellectual property. Monopoly rights which help to prevent third parties from
creeping into your territory by using an identical or confusingly similar mark
on identical or similar products are granted to the proprietor by protection of
intellectual property.[2] Other
benefits of protecting the intellectual property include the ability to use the
registrations within market messaging. Geographical
indications can also add value to brand image by boosting perceived quality
like Darjeeling tea.[3]
Intellectual
property, however, is not an end in itself but a powerful means for achieving
the end of brand success. Their value is much more than being passively
available on a register. They must be used creatively and should be used as
commercially valuable assets than mere legal concepts and enforceable rights.
This can be achieved primarily by putting them to work as tools for creating
and developing a brand value for fostering the business.[4] Strong brand image is a result of various
efforts like the brand strategy,
communication, marketing, media usage, quality
control, trying to have an edge over the competitors. Even though the
unregistered trademarks are protected as the proprietor has a recourse to common
law remedies like passing off. However, they offer a very narrow scope of
protection and a limitation on assertion of the proprietary rights. Therefore, trademark
registration is recommended since it makes the proprietor the exclusive owner of
the intellectual property across the applicable territory.
[1] https://www.brandingstrategyinsider.com/2008/03/branding-and-tr.html#.Wx4JCdWWa1s
[2] https://www.footanstey.com/updates-a-publications/3057-the-importance-of-protecting-your-brand
[3] https://www.innovation-asset.com/blog/building-and-sustaining-brand-image-with-intellectual-property
[4] http://www.wipo.int/sme/en/documents/branding_fulltext.html
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