We often hear clients ask questions like this: 'We are about to launch product Y and service Y under the brand name Z, so we must register Z as a trademark. Otherwise, we cannot use it.'

The short answer is: not quite.

A trademark does not give you a “license to use” your brand. Instead, just like a patent, it gives you a defensive right, letting you stop others from using the same or a similar brand name for similar goods or services. Think of it less as a permission slip and more as a tool to protect your territory.

Step 1: Check before you file

Before registering a brand name, the most important step is to ensure that you are not infringing anyone else's rights.

In other words: Is there already an older trademark out there that could conflict with yours?

It is your responsibility to find out, and this is usually done by searching the relevant databases based on your target markets and the types of products or services (classes) you are offering. Only when you are confident that there are no conflicts should you move on to the next step.

Step 2: Should we register our trademark at all? What is the real value?

Strictly speaking, you do not need a registered trademark just to use a name or logo for business purposes. However, be careful: using the ® symbol or claiming trademark rights without an actual registration is not allowed.

So, what does a registered trademark actually give you? Borrowing a medieval metaphor, a trademark is like a knight's sword and shield.

The shield (defense): Once your trademark is registered, it appears in public databases. This alone can deter others. When someone checks whether a name is available, as they should, your trademark may prevent them from choosing a similar name.

The sword (offence): If someone uses a name that is too similar to yours, whether by mistake or on purpose, you have the legal right to stop them. You can demand, for example, that they stop using it and remove any infringing materials.

This is the main benefit of trademark registration: preventing copycats and protecting your market share.

When might you not need a trademark?

You might decide a trademark is not worth the investment if you are okay with competitors using similar or even identical brand names and are not interested in the legal tools to stop them (or are not capable of doing so).

However, if exclusivity, protection and long-term value are important to you, a trademark is often a smart move.

Bonus: you can monetize a trademark!

As well as providing protection, a registered trademark is also an intangible asset. You can assign (transfer) a trademark to others for a fee or license it to others in exchange for permission to use it. This means that your brand can generate revenue as well as defend against risk.

In short, you do not have to register a trademark. However, if you value protection, peace of mind and growth potential, it could be one of the best investments you can make.

RENTSCH PARTNER is here to provide advice and support. Simply contact us.