If you are a part of several people who won’t stop wondering about the reason and importance of trademarks, then this article is for you.
In Malaysia, a trademark is a type of intellectual property consisting of a recognizable sign that is capable of being represented graphically or an expression that identifies products or services of a particular source from those of others. See section 3(1) of Trade Marks Act 2019, Laws of Malaysia.
Trademark is simply a mark that a company or brand makes use of to distinguish it from other brands. Each trademark consists of its unique characteristics or features.
Most people often confuse trademarks with copyright, though they are both types of intellectual property, they protect different rights. For example, copyright protects original work, whereas a trademark protects items that distinguish or identify a particular business from another.
The main function of a trademark is to enable consumers to identify a product from similar products.
Trademarks are very important because they play a pivotal role in the branding and marketing strategies of companies. They allow companies to be able to differentiate themselves from their competitors. A carefully selected and nurtured trademark is a valuable business asset for most companies. For some companies, it may be the most valuable asset that they own. This is because consumers respect trademarks, their reputation, their image, and a set of desired qualities that they recognize and which meet their expectations.
Just like the way people want and respect designer products, your product would be better valued if it is distinct and has a trademark that people can easily associate with. This gives the companies with a trademark a competitive edge.
Trademarks are also very important because they provide an incentive for companies to invest in maintaining or improving the quality of their products in other to ensure that products bearing their trademark have a positive reputation.
Registration of trademarks gives your mark a legal backing that prevents others from using it or misrepresenting it to others. Though an unregistered trademark may still enjoy some protection under the common law, however, such a mark must be well recognized before being able to exclude others from making use of it. The best way as the owner of any sign for your brand to have an exclusive right to the use of your sign/mark is to have it registered as a trademark. That way anyone that uses the mark without the authorization would be an infringement of the law. It is highly advisable to register trademarks because of the value it provides.
A registered owner of a mark can monopolize the brand and any unauthorized use will amount to an infringement of the rights of the owner of the mark.
Registration of trademarks makes it easier to enforce, it reduces the legal burden of proof that is required. First in time to register always takes precedence. Unlike passing off, the owner of the mark would have a difficult time proving that the mark is theirs and is recognized in their locality.
A registered trademark makes it easier for companies and individuals to obtain your franchise because the brand is trusted and has a name. This provides additional revenue for your brand.
A registered trademark gives the brand owner opportunities for funding from financial institutions, knowing fully well the importance of branding for business success.
The importance of registering a trademark cannot be overemphasized, it distinguishes your brand, increases your visibility, and gives you better and quality customers because it shows that you value your brand and would not compromise quality.