Everything You Need to Know About Trademarks for Your Business - Aspira Financial

 

Intellectual property. It’s a hot topic.

Why?

Because in the globalized and ultra-connected world we live in, the intellectual property (IP) of individuals and businesses is increasingly at risk.  

It’s not just famous cases like Ugg Boots that are making the news. Trademark, patent, and copyright infringements, in general, are on the rise – both from the work of unscrupulous individuals/organizations and through innocent breaches of IP.

In Australia, interest in protecting ideas through IP rights is increasing. In the latest figures available, trademark applications grew by 14 percent – the highest growth in a decade. Copyright and design applications also grew, indicating that innovation is alive and well in Australia.

To successfully commercialize this innovation, it needs to be protected by law.

What are you doing in your business to protect your IP and your ideas? 

Trademarking your goods or services may be the best option for you. Here we look at the key questions to consider before deciding to apply for trademarks. 

In considering these questions, you will become clearer on the reasons for applying for trademarks and the process you need to undertake to protect your business… 

1. What is a trademark?

A trademark is used to uniquely identify a product or service and distinguish it from the offerings of competing traders.

This can take many forms including:

• A symbol or a number
• A letter, phrase, or word (in a particular font)
• A sound (such as a musical jingle)
• A shape, picture, or logo
• An aspect of product packaging

A trademark is more than just a logo for your business (though a trademark can be a logo). It covers you legally from someone trying to replicate the above aspects of your goods and services.

By registering a trademark, you have the exclusive right to sell the product or service. You can also authorize others to use and sell it.

2. Does a trademark last for life?

No. A trademark must be renewed every 10 years to retain the exclusive rights to sell the product or service in question.

Trademark registration can be renewed up to 12 months before the renewal date is due and no longer than six months after (in the latter case, extra fees will apply).

However, during this period you must demonstrate that you have actively used the trademark – or the exclusive rights to use it may be rescinded by the Australian government.

3. Do all businesses need trademarks by law?

No. There is no requirement for a business to register any trademarks. It is NOT the same as a registered business name or registered company name, which all businesses must-have.

However, if you want to protect the unique aspects of your business’s goods and services, you should consider trademarks.

For instance, just because you have a business name and have registered the domain name of a product, it does not prevent another business from using very similar details as you for a competing product or service.

4. What are the main benefits of trademarks?

While trademarks are different from brands, they can become an important part of your identity. For instance, what would Qantas be without the red and white kangaroo emblem on the tail of its planes?

This is a registered trademark that is instantly recognized and helps promote Qantas services around the world.

Once you register a trademark, other businesses must respect that you have exclusive rights to its use – or you have legal recourse to take action.

5. How do trademarks differ from copyrights, designs, and patents?

Intellectual property (IP) includes all inventions, literary and artistic works, designs, symbols, names, and images that are used to trade.

There are many ways of protecting this.  Let’s look at the simple case of a pen:

• A trademark application may be for the name of the pen or the type of packaging used to distinguish it from other pens.
• A patent for the pen might be for a particular type of pen with a new way to store its ink.
• Industrial design protection may be sought for the pen’s new type of grip. 

A copyright application is different again. This is sought to protect the IP of published or performed material. A copyright grants “the exclusive right to print, publish, perform, film, or record literary, artistic, or musical material or to authorize others to do so.”

6. What’s the difference between registered & unregistered trademarks?

You can use trademarks in one of two ways:

• An unregistered trademark – free to use but with restrictions; if someone has registered the same trademark, they can take legal action against you. Using the ® trademark symbol is an offense, though you can use TM to designate an unregistered trademark.
• A registered trademark – you are legally allowed to use the ® symbol and nobody else is allowed to use the same trademark; you can pursue legal action against them if they do so.

Note that there are some circumstances where even unregistered trademarks provide protection under the law: for instance if you have been using an unregistered trademark for many years before someone else starts using it.

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