December 03, 2010
Trademarks are a vital marketing tool to any business. A business’ brand is one of the most effective ways of reaching customers and causing them to associate the high quality of goods and services provided, with that business only.
To register a trademark a word must, by its very nature, be capable alone of indicating the specific trade origin of goods and services. However, even a descriptive or generic name can be registered if it is found to have acquired ‘distinctiveness through use’. This means that a business has already widely used and marketed the name to such extent that the public already recognise it as identifying the goods and services of that particular business.
New business owners should always be careful to check that they do not choose a name that is already being used in part or whole by a potential competitor or well-known business. For example, many businesses have found themselves embroiled in costly disputes with McDonalds for using the ‘Mc’ prefix, in which the multinational company seems to have a monopoly, at least in the fast food industry.
Existing business owners should also check that their names are not confusingly similar to those of their competitors or well-known companies and if they are, should balance and assess the risks and costs of receiving a trademark infringement or ‘passing off’ action, against the costs involved in re-branding their businesses.
Business owners should apply to have their trademarks registered as soon as possible as this will provide greater security and protection from exploitation of their good will, by competitors.
