COMMON MISTAKES CAN COST YOU YOUR BRAND

INTRODUCTION

Intellectual property (IP) lawyer frequently come across companies that are having significant difficulties as a result of their early failure to implement crucial IP protections. Many entrepreneurs approach the experts with concerns after discovering, often too late, that they have made serious errors pertaining to their intellectual property. The experts can sometimes help them solve the problem or lessen the harm. In other cases, however, the company has already missed the chance to gain a competitive edge or has to spend a significant amount of time and money correcting the mistake. In the upcoming paragraph, we’ll look at the common mistakes that everyone should avoid to protect their brand.

In the worst situations, there are vital outcomes; the company must close, and the owner is left with significant debt and frequently loses everything they invested in the business.
Every company, regardless of size or sector, possesses intellectual property of some kind. Brand names, logos, proprietary inventions, customer databases, distinctive procedures, marketing plans, and more can all fall under this category. From contracts and non-disclosure agreements to trademarks, copyrights, and patents, each piece of intellectual property needs a unique kind of protection.

With platforms like TMWALA, businesses can easily access expert support for trademark registration, monitoring, and renewal, helping them proactively manage their IP from the start.

In addition to being required by law, knowing and safeguarding your intellectual property from the start is essential to creating a long-lasting and prosperous company. Let’s examine the common mistakes one should avoid while developing their brand.

THE COMMON MISTAKES TO AVOID

1. CHOOSING AN UNORIGINAL OR GENERIC TRADEMARK

Words that represent a broad group of goods or services without mentioning their source are referred to as generic terms in trademark law. These phrases must continue to be accessible to all users and are crucial for classifying trademarks. Generic phrases cannot be registered or enforced as trademarks since they describe the actual commodity or service. Determining trademark eligibility and guaranteeing proper trademark applications requires an understanding of the distinction between generic and distinctive phrases.

CONSEQUENCES

• Lack of Distinctiveness: Generic phrases are automatically rejected since they are unable to identify the source of goods or services.
• Confusion: Words that are on the side of generic and descriptive can be confusing and make analysis more difficult
• Market Monopolization Issues: Giving generic terms exclusive rights runs the danger of unjustly limiting competition.
• Opposition and Cancellation Procedures: Citing public interest, third parties frequently contest registrations or applications that contain generic phrases.

2. FAILING TO PROPERLY REGISTER YOUR TRADEMARK

When IP transfers are not registered, formal ownership recognition is lost, enforcement in disputes is weakened, and vulnerability to unlawful use is increased. It complicates licensing and commercialization, raises questions about ownership, and may lead to lost benefits, tax fines, and liabilities. It also compromises due diligence, lowers the accuracy of asset assessment, and harms investor trust and the company’s brand.

Services like this, TMWALA, simplify the registration process by guiding businesses through documentation, government filings, and compliance, ensuring legal ownership and broad protection.

CONSEQUENCES

• Loss of Exclusivity: Your brand’s exclusive rights are not guaranteed by an unregistered trademark. There are no legal ramifications for competitors that use your company name or emblem. Confusion in the marketplace may result from this, particularly if your brand gains recognition.
• Limited Trademark Rights: Having a registered trademark protects you across the country. In the absence of it, your rights are usually restricted to the region in which you have used the trademark. This may limit your capacity to grow and safeguard your brand in other areas or even abroad.
• Business Risks: You risk losing the recognition you have worked so hard to establish if rivals begin to use a similar brand name. Reduced market share, customer confusion, and lost revenue are some possible outcomes.

3. NOT USING YOUR TRADEMARK IN COMMERCE

By permitting the removal of a registered trademark from the register if it has not been used for five years and three months in a row and there was no legitimate intention to use it at the time of registration, Section 47 of the Trade Marks Act, 1999, prevents trademark hoarding and misuse.

This clause, which emphasizes that trademark rights are temporary and must be used within a reasonable time frame, has been continuously maintained by Indian courts. A registered trademark may be considered abandoned and revoked if it is not used. The party making the claim bears the burden of demonstrating non-use in certain situations, and the trademark holder is required to refute the claims with proof of actual usage.

CONSEQUENCES

• Removal from the Register: If a trademark is not used for more than five years and three months, Section 47 of the Trade Marks Act of 1999 allows for its cancellation.
• Loss of Legal Rights: The owner no longer has the sole authority to stop others from using or registering the trademark.
• Vulnerability to Rectification: The mark is no longer legally protected, as any person who feels wronged can request that it be removed.
• Brand Value Decline: Long-term non-use can harm a company’s reputation by undermining goodwill and brand recognition.

4. NEGLECTING TO MONITOR AND ENFORCE YOUR TRADEMARK RIGHTS

Serious repercussions, such as the loss of exclusive rights, abandonment claims, and the possibility of the trademark becoming generic, might result from neglecting trademark monitoring. As demonstrated in the instance of “zipper,” trademark owners may lose their ability to enforce their rights against illegal use, which can weaken the mark’s uniqueness and make it more difficult to legally protect. Long-term inaction or non-use may also be construed as abandonment, as was the case with “aspirin” in the US, where Bayer lost rights since they were not upheld. Additionally, a trademark may completely lose its protected status if the general public starts using it as a generic term for a certain kind of product, such as “vaccine” or “escalator.”

CONSEQUENCES

• Loss of Exclusive Rights: A trademark’s legal protection and capacity to prevent illegal use may be compromised if it is not enforced.
• Trademark Abandonment: The owner may be accused of abandoning the trademark if there is a prolonged period of inactivity or non-use.
• Genericide: If the trademark is widely used by the public as a common phrase, it may lose its protection and become generic (e.g., “Aspirin,” “Escalator”).
• Brand Dilution: Unchecked usage by other parties can reduce a brand’s market value and uniqueness.

5. FAILING TO MAINTAIN AND RENEW YOUR TRADEMARK

The loss of legal protection, which leaves the mark open to infringement, and the possibility of brand dilution are the most serious repercussions of failing to renew a trademark. If legal action is required to recover rights, particularly after unauthorized usage starts, this could lead to expensive litigation. Additionally, consumers may become misled by identical logos employed by rivals, which could damage a brand’s confidence and trustworthiness. Additionally, the company can lose out on important chances like joint ventures, licensing agreements, and market expansion, which would eventually affect earnings and long-term development.

CONSEQUENCES

• Loss of Legal Protection: The trademark loses its exclusivity and becomes susceptible to infringement by third parties.
• Damage to Brand Reputation: Unauthorized use can cause confusion for customers, which lowers confidence and damages the brand’s reputation.
• Missed Business Opportunities: Lack of trademark rights could cost the company future growth opportunities, licensing agreements, and collaborations.

CONCLUSION

Protecting intellectual property is a strategic necessity that may shape a company’s destiny, not just a legal requirement. As previously mentioned, neglecting to put in place appropriate intellectual property protection, such as obtaining a unique trademark, properly registering it, using it regularly, keeping an eye on its use, and promptly renewing it can have detrimental effects that range from legal issues and monetary losses to total brand deterioration or company closure.

Regardless of industry or size, intellectual property must be viewed as a critical business asset from the very beginning by all entrepreneurs and business owners. Ignoring it can jeopardize competitive advantage, erode hard-earned progress, and eventually risk the company’s life. On the other hand, proactive IP rights management can improve investor confidence, fortify market position, and open significant doors for growth and innovation.

This is where TMWALA plays a vital role, offering end-to-end trademark solutions including search, registration, monitoring, and renewals, all in one place. By partnering with a trusted platform, businesses can stay compliant and secure their brand identity without the typical legal hurdles.

In summary, a solid intellectual property foundation is essential to the success of any organization and serves as more than just a legal buffer. By avoiding the typical blunders mentioned, you can make sure that your brand not only endures but flourishes in the fiercely competitive market of today.