Start-Up Companies and the Importance of Trademark Registration — ADVENT

Although the U.S. economy is going through a recession due to the COVID-19 pandemic and its devastating effects to established businesses across the country, the third quarter of 2020 was marked with over 1.5 million new business applications according to the U.S. Census Bureau. Business application growth in 2020 surpassed the levels of growth respective to 2019 by more than 120% at its highest point in July.

Figure 1. Number of New Business Applications 2019-2020

For those new business owners who took the plunge to start building their ideas from the ground up, it is crucial to learn about their intellectual property rights. Trademark Registration is a great way for a new business to hit the ground running. Registration creates brand recognition for the service and goods your business provides and protects your rights from infringement. It is a great marketing strategy to build a reputation for your business to be recognized both in the industry and by future employees and customers.

Here are some important facts to know as you start your own business:

What is a trademark?

A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. This includes words, symbols, designs, colors, sounds, and even smells!

What is the difference between a trademark and a service mark?

A trademark identifies a source of goods, such as physical products, whereas a service mark identifies the source of a service.

Differences between Trademark, Patent, and Copyright?

A trademark protects the brand for goods and services. Whereas, patents protect the invention, and copyright the original artistic and literary works.

Does registering a web address protect secure trademark protection?

Registering a domain name (web address for the business) does not secure that web address for trademark purposes. If the registered web address contains a trademark owned by another individual it may lead to surrendering that name from the web address.

How long is a trademark protected?

Trademark protection is for an indefinite period. However, maintenance fees must be paid five years from the registration date of the trademark with a one-year grace period. Another maintenance fee must be made on the ninth year from the registration date, with a one-year grace period. An affidavit must be provided that declares a continuous active use of the trademark in commerce.

Trademark protection is critical to building and maintaining a successful business. Are you a new business owner or are considering becoming an entrepreneur in the future? Make sure your business is protected and register your trademarks. If you have any questions about trademarks and starting your own business, our partner Mallory Henninger has years of experience in trademark registration and protection to assist you. Call Mallory at our Omaha patent law firm at (402) 502-1020 today!

Cites:

U.S. Census Bureau, Business Applications for the United States [BUSAPPSAUS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BUSAPPSAUS, January 29, 2021.

USPTO, (2020, September) Protecting Your Trademark, Enhancing Rights Through Federal Registration. Retrieved from: https://www.uspto.gov/sites/default/files/documents/Basic-Facts-Booklet.pdf