A firm’s internet and market presence are critical to its identity and success. It instills confidence in its consumers, suppliers, clients, and staff. Trademarks are the most effective means to safeguard this identification.
However, a recent survey found that start-ups are forsaking distinctive one-off names in favor of identifiable descriptive terms. While this has advantages in that start-ups do not need to “educate” people about who they are and what their name implies, we address the implications for legal trademark protection in this piece.
Securing a trademark
Firstly, what is the point of a trademark?
Trademarks are vital for every prospective business since, before registration, any other firm might potentially trademark the same name, logo, or other distinguishing aspects of a brand. Trademark registration is done on a “first come, first served” basis. As a result, if a firm that has used a specific logo or name for years fails to register it, the next company that tries may be able to. This would be unpleasant if a eating this brand.
Obtaining a trademark protbrand were developed under a specific business name that is well-known and trusted in the region and sector in which it operates, with significant time, money, and energy invested in crects the formed brand and gives remedies to prevent another firm from using identical names and signs and profiting from the success of another.
A registered brand allows a start-up to take action against parties attempting to register rival trademarks or operating with contradictory brand representations, threatening the original brand’s company or image.
A trademark can also be a continuous asset, growing with the brand’s increasing value. Investors will be impressed, buyers will trust the brand, and suppliers will be motivated to cooperate with it. It provides a monopoly or the brand, preventing other companies from infringing, and is a crucial strategic tool.
The EU Trademark Register is recognized across Europe and protects in addition to national and international protection inside and outside the EU. As a result, registering a trademark in the EU has significant ramifications for the long-term development of a successful brand.
An influential and recognizable trademark assists customers in recognizing your brand and increases client loyalty. In addition, a recognized trademark becomes relevant to a consumer in that the brand stands out, fostering trust and a continuing relationship between the customer and the brand. This motivates people to remain loyal to that brand.
Do start-Ups want simple and descriptive names?
According to Crunchbase research, last year was “the year of the noun.”
According to studies, start-up firms increasingly prefer to name their enterprises after recognized dictionary terms rather than some of the more distinctive (some could even call them “silly”) names that have been fashionable in the past.
The study interviewed a naming consultancy, who confirmed that rather than using unusual words to create a unique brand with a word that becomes attached to it, start-ups are choosing to name their companies with known words that explain exactly what they do- The Browser Company, which provides internet browsers, Wardrobe, a clothing rental start-up, and Banked, a payment platform- are all given as examples.
This got us wondering at GL: what exactly is in a name? Is it preferable for start-up businesses to name themselves so that a passer-by may quickly identify the product or service they provide, or is it better to select a distinctive sound or term that will only be associated with that brand?
Start-ups appear to be less concerned with obtaining internet domains that are the same as their registered names and are willing to compromise to have a more specific name to trade, even if they cannot obtain that exact domain name. The common names were picked for their simplicity, ease of spelling, and comprehension. While significant businesses can afford to promote their odd names and guarantee that people recognize them, smaller brands choose short, descriptive names that don’t require teaching.
However, the benefits many start-ups find in these essential names might also work against them regarding brand and trademark protection…
The importance of a distinctive name
While it is easy to understand how valuable a trademark is to a business, obtaining one is not that straightforward.
There are only a few restrictions on what a company can legally register as and how they can design their logos, websites, packaging, and so on- this is not the same as registering a trademark, and while a company may have been given a specific name or design, acceptance as a trademark is not guaranteed. In addition, any indications that identify one business’s goods or services from those of other businesses can be trademarked- but how is this reviewed?
An EU trademark must be able to be shown on the register, operate as a trademark, not be identical or confusingly similar to prior rights, and not infringe on renowned trademarks. For example, it might be a name, a trademark, a string of characters or numbers, a form, packaging, or even noisse.
Furthermore, there are grounds for denial, so even if all of the above conditions aresed to public policy or morals, comprises particularly protected symbols, or is a three-dimensional trademark. satisfied, a corporation may still be unable to register a trademark. For example, a trademark will be denied if it lacks uniqueness, is made up entirely of purely descriptive signs or indications, is oppo
Under EU law, distinctiveness is a crucial criterion for trademark registration. This implies that a phrase solely descriptive of the items or services a firm will provide cannot be trademarked. In reality, the EU Trademark Directive expressly prohibits trademarking a term that is intrinsically descriptive in the eyes of the public or is frequently used in commerce.
So, while descriptive terms may be easy for new consumers to remember, they may not be the most effective solution to protecting your brand from potential rivals and creating brand recognition.
Even if a corporation is the first to use a descriptive phrase and is authorized to register that term as a trademark, if it is a term that is likely to be used frequently, the trademark may be lost due to degeneration. According to EU law, if a distinctive and legally registered trademark is utilized to such a degree over time that it finally becomes descriptive for the items for which it was initially a distinctive brand, the trademark will be ruled invalid.
Consider nylon or thermos, which have now become descriptors for the things they were initially filed as trademarks!
As a result, while it may appear economically advantageous to establish a company under a simple name or begin utilizing simple descriptive phrases for branding, it is not so legally advantageous since you may lose trademark protection and a helpful asset that would otherwise have been accessible.
Using your trademark as an asset
It is critical to discuss what happens once a trademark is registered. While many businesses invest time and money in registering their brand to guarantee that it is protected and cannot be diluted, it may be difficult for businesses to know what to do next. While trademark protection has numerous advantages, it also has certain drawbacks that should be considered. To reduce the danger of infringement and the possibility of a mark becoming generic and therefore invalid, trademark holders should be aware of renewal deadlines, revocation threats if they do not use the mark for a continuous period of years, a declaration of invalidity, and appropriate use of notifications.
Suppose a trademark owner does not sufficiently supervise and object to infringements of its trademark, and businesses begin using the mark regularly. In that case, the mark may become invalid through degeneration.
Overseeing trademark protection and ensuring there are no infringements may be time intensive, especially if the firm is unfamiliar with national trademark registries. Remember that an EU trademark registration protects a brand across the EU, which means that a brand can object to any infringement use of a trademark anywhere in the EU, even if the registration is on a national trademark register.
Because of the rapid advancement of technology, it is becoming increasingly more accessible for other firms to user’s success. As a result, copy-cat companies can dilute the efficacy of the original brand that has been identical trademarks, either accidentally or in an attempt to capitalize on anoth developed, tarnish the image that has been worked hard to build or endanger its trademark in this internet era.
We recommend that anybody with a trademark remain on top of new registrations and the usage or mention of any of your trademarks online where products or services are provided and make full use of this asset.
Of course, legal counsel maybe helpful in this situation, ensuring that no stone is left unturned and determining the appropriate future measures if violations are detected.