Advantages Of Trademark Registration

Exclusive Usage Rights

• One of the significant benefits of trademark registration is that it grants exclusive rights over the trademark. The trademark owner can apply the same for all the products or goods falling under the classes for which it is registered. The trademark registration provides the exclusive right to take legal action against third parties who use a similar or identical mark without authorised permission for their products.

Builds Goodwill

• The other benefits of trademark registration is that it helps to establish goodwill and trust in a brand. The goodwill of the brand increases when it becomes popular amongst customers. It helps to create regular loyal customers who recognise products or goods from its brand and opt for the same brand. A trademark having a good reputation and goodwill can also help obtain funds from financial institutions.

Differentiates Products and Services

• A trademark aims to distinguish goods and services from its competitors and create a brand identity. Trademark registration makes it easy to commercialise or market a product or service with a unique brand identity in line with the market requirements. The brand identity communicates the company’s quality, vision and several other features of the products and establishes its uniqueness amongst customers.

Protection Against Infringement

• When third parties use a registered trademark for their products or goods without the owner’s permission, it amounts to infringement. It means that if a third party violates the registered trademark, the trademark owner has a right to take legal action against them for infringement. In a case of infringement, the court can order to stop the third party from using the registered trademark and even give back the profits made by using such a trademark to the registered owner.

Protection For Ten Years

• A trademark registration is valid for ten years. Once it is registered, it cannot be used in an unauthorised way by a third party for ten years. Thus, it helps to protect the brand for ten years in a cost-effective manner. After ten years, the owner should apply for renewal of the trademark for ten more years.

Global Trademark Registration

• When a trademark is registered in India, it does not grant global registration. However, the Indian trademark registration can be used as a base for an international trademark application. When the trademark obtains international registration, i.e. registration in a foreign country, a third party cannot use the trademark in that foreign country and establishes its uniqueness and distinctiveness in the global market.

Disadvantages Of Trademark Registration

No Alteration of Trademark Classes

• One disadvantage of trademark registration is that once it is registered under one class, it cannot be applied for goods belonging to other classes of the same company. More than one trademark class can be chosen while filing the registration application. However, the trademark class cannot be altered once the application is filed. If the company starts selling goods under another trademark class, it must apply again and get the trademark registration for that class of goods. Thus, a company must choose the trademark classes relevant to the goods and services when applying for registration.

Trademark Opposition

• After filing the trademark registration application, it will be published in the Trademark Journal. Anyone can raise opposition to registration when it is published in the trademark journal. When the opposition is filed, the Registrar of Trademarks will go through the opposition, counterstatement, and evidence and conduct a hearing. It can only be registered when the Registrar of Trademarks decides in favour of registering the trademark after conducting the opposition proceedings. The trademark opposition process is time-consuming, and the owner may have to pay the fees of a legal counsel for defending the trademark registration.

Renewal Every Ten Years

• Trademark registration is valid for ten years and requires renewal after every ten years. At the time of renewal, the renewal fees need to be paid. Non-payment of the renewal fees at the time of renewal, i.e. every ten years, can result in the removal of the trademark from the Trademarks Register.

Limited Protection

• When it comes to protecting products or services, a trademark is the weakest property rights among copyright and patent protection. Trademarks do not always protect the products. It protects only the marketing concepts. Therefore, trademark registration grants limited protection compared to other property rights protection.

Descriptive Trademarks Cannot be Registered

• A trademark owner cannot choose a descriptive trademark. They must create a unique trademark for their products and services. Descriptive and generic trademarks do not qualify for trademark registration.
• The benefits of trademarks outweigh their disadvantages. A trademark helps in the growth of the business and in gaining more customers. Thus, it is better to register it to prevent its unauthorised usage by third parties.