Importance Of Trademarks With Special Reference To Start Ups

The startup culture has been progressively emerging as a hegemony of the commerce sector and thus suitable enforcement strategies are necessary to be adopted for a safe establishment. Trademark enables such companies to accomplish some major goals which lead to becoming successful organizations and instituting their name. This blog will explain all of such advantages.

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The augmentation of our economy revolves around innovation and a refined transformation in urbanization. With the advancing arena of technology and modernization, it is time to cultivate a more approachable and adaptable perception of the wide array of imminently forthcoming ideas and changes in the business industry.

Startups are establishments that are newly developed businesses in the initial stages of functioning, founded based on a distinctive interpretation. They can be considered analogous to a bird about to take its first flight in the big perilous world. Therefore, they must be provided with adequate security and provisions in order set them up for a grandiose entrance into the corporate milieu. There are tons of strategies implemented by the government which is set up to do the same. The government constantly encourages the aforementioned action by passing various schemes and giving advantages to startup companies-

• One of them is the Startup India Action plan 2016 which is a flagship program of the Indian government aimed at creating a robust ecosystem for incubating innovation and startups in the country, resulting in prolonged economic growth and large-scale employment generation

Under this scheme, startups will receive an 80% discount on patent filing when compared to other businesses. This will aid them in cutting costs throughout the early years.

The Controller General of Patents, Designs, and Trademarks (CGPDTM), who will also regulate their conduct and powers, will appoint a panel of “facilitators” to help administer the program. Facilitators will be in charge of providing general advice on various IPRs, as well as information on how to protect and market IPRs in other jurisdictions. They will also aid with the filing and disposal of IP applications related to patents, trademarks, and designs under relevant Acts, including presenting on behalf of Startups at hearings and challenging opposition from third parties, if any, until the IPR application is finally resolved.

The Central Government will cover all facilitation fees for any number of patents, trademarks, or designs that the Startup files and the Startups will only be responsible for the statutory fees.

• The scheme for Start-ups Intellectual Property Protection arranges for the facilitation of filing applications for patents, designs, and trademarks through registered facilitators by paying obligatory fees in the relevant IP offices.
• A list of facilitators is also available on the Trade Marks Offices’ website (www.India.nic.in) under the startup facilitation scheme, whereby services may be benefited startups for trademark registration applications, and the professional fees of such facilitators are refunded by the government.
• In the Department for Promotion of Industry & Internal Trade (DPIIT), to make trademarks easier for startups, the government offers a 50% concession on the mandatory fees for registering trademark applications.

The government also introduced ‘IPR facilitation for startups 2016’ under which it approved and started the Start-ups Intellectual Property Protection (SIPP) scheme.

The facility of trademark registration is a herald of ensuring legal security for start-ups. Trademarks provide a magnanimous number of advantages to these companies; it is strongly advised to the proprietors to get their brand registered under the Trademark Act 1999.

In my opinion, the significant factors of registering your trademark as a startup are as follows:

• It’s all a game of recognition- Trademarks help to institute the product/ service by acting as a contrivance to gain public acknowledgment. Global renown takes advantage of innate trends to have a positive impact on behavior and benefit the business.
• Builds goodwill- A company’s goodwill is the harbinger of important clientele. It increases the opportunity to be remarked as the producer of good quality products/ efficient service. Goodwill also embarks on the trust of the customer.
• Startup patent applications are expedited: When an innovation receives the protective cover of a patent, its value skyrockets. To this purpose, Startups’ patent applications will be expedited for assessment and disposal, allowing them to recognize the benefits of their IPRs sooner whenever possible
• Safeguards against infringement and imitation- A trademark provides for numerous provisions against infringement of trademark and protects an individual’s brand. It ensures that the deserving credit for the formation of an original idea is received by the right person.
• Gives exclusive rights to the proprietor- The owner of the trademark becomes the possessor of a variety of exclusive rights which are provided under the Trademarks Act 1999. Such rights include rights to exclusive use, right to seek statutory remedy against an infringement, right to assign, right to exclusive use, right to correction of register, and right to alter the registration.
• Gives a sense of authority- The owner of the trademark indulges in a state of accreditation and the sentiment of being the autonomous power of a brand.
• Trademark is intangible and imminent- Trademark creates a valuable and ever-lasting asset for your firm which can be sold or transferred to bring extra income and generates credit value. The longevity duration of the trademark lasts for 10 years and thereafter canbe applied for renewal. This process can go on forever until the liquidation. In this way, a marginal credit generation can occur in the odds of your company.
• Leads to pertinent growth- Due to the brand being established in the market already, the process of expansion becomes a whole lot easier and the merit you earn because of it leads to meritorious achievements.
• Avoids legal issues- The protection ensued because of the laws against infringement and imitation of a particular mark prevents the company from facing any legal issues and ensures that the mark claimed for your brand remains yours itself.
• Employment generation- A trademark diverts the attention of potential employees to the reputation earned by the service/ product you have rendered. This enhances profit generation and leads to an increase in human resources, which is undoubtedly the most important resource to exist.
• Increase in profit- Trademark, by increasing the goodwill, attracting customers, increasing employment generation, and preventing the cost of legal issues, leads to higher profit margins and an eminent position in the market.

CONCLUSION– With so many schemes and provisions endowed to us by the government, it is our responsibility to take care of our brand by making use of all of these schemes. Especiallyduring the commencement of a company, trademarks provide aid to them in such fragile circumstances. Hence, it would be a pretty standardized step for a company with the aim of maximizing its profit and building a decent name in the industry.

Author: Gurveen Kaur – a intern at  IP And Legal Filings, in case of any queries please write back us via email at support@ipandlegalfilings.com.