As an astute business person, you understand that registering a trademark entitles you to protection and access, much like getting a key to your own house.
But beyond that, it means that no one else can lay claim to what is yours. That simple assurance makes the time, effort, and cost of filing for a trademark worthwhile.
But wait. While agreeably a smart business move, there are instances when choosing not to trademark could be the best decision.
Don’t trademark if you have short-term plans for your business
You have always had a passion for woodwork. During a much-needed work break, you completed some projects.
To your surprise, you managed to sell them off pretty quickly after posting them online. However, as much as you commit to making a few more pieces, you don’t have plans to make it a full-time business.
In such a case, filing for a trademark may not make much sense. The process is time-consuming and can be quite costly. For instance, in the US, to trademark a name, you will need to pay:-
1. USPTO filing fees ranging from $250 to $350
2. Attorney fees
3. Trademark renewal fees, etc.
Don’t trademark if copyright protection is sufficient
Your business model is along the lines of creative works. It could be literary, music, architecture, and other original works.
In this case, getting a copyright makes more sense. You get to retain exclusive rights to display, print, perform, or distribute your work.
To qualify for copyright, your work must be:-
1. Original meaning it does not resemble or copy another piece of work
2. Creative thus not common or generic
3. Fixed in a tangible medium of expression such as print, film, computer program, or book.
A copyright is easier and cheaper to get than a trademark while affording you a layer of protection for your work.
You are thinking of rebranding in the near future
Your business is taking off quite nicely. But, you still don’t feel that the brand name and image are quite what you had in mind. You are also thinking of adding a few more products or services to your offering.
Experts will tell you to hold off on filing a trademark until you have ironed out the rebranding completely.
Other than the waste of resources, you avoid:-
1. Creating unnecessary complications by abandoning the name you trademarked
2. You may render your existing trademark irrelevant due to the change in branding collateral, domain names, etc.
You don’t have plans for geographic expansion
You are pretty satisfied with your corner store and have no plans for geographic expansion. So, it may not make too much financial sense to trademark your business. Even if you register, you may not see additional benefits for your time and effort.
In this case, our experts would advise on opting for local business registration. Also, get a domain name to further establish your business.
Your brand name contravenes trademarking guidelines
Choosing a brand name is hard enough. But, it helps to know that you need to be quite careful because it could prove to be a challenge the day you decide to file for a trademark.
Certain factors can lead to a name rejection, including:-
1. Generic names – Cakes shop, shoe shop, car wash, house décor shop, etc. will not work.
2. Descriptive names – fast printers, speedy delivery, soft towels, best buggers, cold and refreshing, etc. describe qualities, ingredients or services.
You run the risk of infringing on existing trademarks
We go back to our earlier point of being quite vigilant about choosing brand names, phrases, and other elements that will go into the trademark filing. You must carry out a search to check if someone else has trademarked it.
Finding yourself in a trademark dispute is not something you want to deal with. Legal battles, huge legal fees, and possible penalties are things you want to avoid.
Your brand is important, take the right steps to secure it
Filing a trademark offers brand protection and can be a critical investment for your business. SO make sure you have the right team behind you to ensure you are doing it right.
