Trademarks & taking care of them

Read on to find out more about trademarks in this article from IP Australia.

Whether you're starting a new business, buying an established one or considering expansion options like franchising, it's easy to neglect your trade mark in your preparations.

Deciding on what your name should be or how your logo should look isn't the final stage of branding your business.

Your trade mark is how your customers identify you and what you're selling. Put simply, it identifies where goods and services come from and is a 'personality' or identity that your customers will come to know. Consequently it's one of your most valuable assets and should be looked after accordingly.

A common mistake made by those starting out in business is to attempt to register their trade mark after they've spent considerable money on signage, packaging, websites and advertising. The risk here is that you may be inadvertently infringing on someone else's trade mark. If they tell you to stop using it, there's not much you can do except comply - which means all that money you've spent is for nothing.

So for those of you new to business, get cracking! Register your trade mark before you start using it. It could save you big bucks in the long run.

If you're buying an established business, part of the conditions of sale should include the transfer of all intellectual property (IP) to you. One of the attractions in buying an existing business is its established customer base and market reputation—in many ways what a trade mark represents. If the seller won't let you use the trade mark it may appear to customers that a new business has simply replaced the old and it will mean going back to square one in building consumer confidence. If you do want to change the brand, consider refreshing what you have to ensure the link to the old business remains in the customer's mind.

And what about franchises? A vital part of an agreement with a franchisee is making clear who owns the IP and what the conditions are for its use. If you don't want your franchisees to change the way your trade mark looks or if you want them to display it in a certain way only - it needs to be in a formal agreement from the get go.

In summary - you need to establish who owns the trade mark, secure formal registration as soon as possible and if it's owned by the selling business, have it transferred into your name. When taking on franchisees, have them sign agreements to ensure the correct usage of your trade mark.

Taking these steps will ensure your trade mark is a strong, unwavering brand your customers will recognise and your business partners can use with confidence. Once you have a registered trade mark, you can keep renewing it forever.

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