Importance of Trademarks for your Business – A Complete Guide

Importance of Trademarks for your Business
Karan Singh
| Updated: Mar 16, 2021 | Category: Trademark

Every business understands the importance of trademarks, and they register the trademark with the local trademark office, which is done by the Controller General of Patents, Designs and Trade Marks. This gives their Intellectual Property protection under the Trademark Law. There are many reasons trademarks are very important, and companies or businesses know about the importance of Trademark Registration because this deliberates them the right to protect this unique intellectual property against infringement. In India, registered trademarks are safeguarded by the Trade Mark Act 1999 and are controlled by the Trade Marks Registry. The Trade Marks Registry acts as an information center, a resource and a facilitator in trademark matters in India.

Customers purchasing any products or services are influenced by trademarks, and the reputation of such brands represent. It is essential for you to understand the importance of trademarks for your business and help grow your business. Scroll down to check the importance of trademarks for your business.

Meaning of Trademark – An Overview

Before we discuss the importance of trademarks for your business, let us first know the term “Trademark”. A trademark states to a recognizable word, logo, phrase, or symbol that represents a particular product and legally differentiates it from all other products available in the market. A trademark completely identifies a product as belonging to a particular company and recognizes the ownership of the company’s brand. Trademarks are normally considered a form of intellectual property and may or may not be registered under the Trademark Act.

Also, Read: Procedure for Trademark Registration in Mumbai – A Complete Guide

What is the Importance of Trademarks for your Business?

Following are some importance of trademarks for your business:

Importance of Trademarks
  • It Provides a Unique Identity: Trademarks are vital because it provides a unique marker of identity. One look at the trademark, and the customer connects it with a company or business. It could be the name on the design, logo, or the word. Customers don’t even have to read the words to figure out what it means. One look should state to them what it is all about.
  • Trademark is an Effective tool for Communication: In a single logo or brand, trademarks can carry intellectual and emotional attributes about you, your company or business and your company’s or business’s reputation, products and services offered by the company. Your trademark does not need to be a word only, and designs can be recognized regardless of alphabet or language.
  • Trademark make it easy for consumers to find you:  The marketplace is fully packed, and it isn’t easy to differentiate your business from your competitors. Trademarks are an effective commercial communication tool to capture customer’s attention and make your business, products and services stand out. Customers seeing a trademark instantly know who they are dealing with your business’s reputation and are less likely to search for alternatives. Your brand could be an essential factor in driving the purchase decision of a customer.
  • Trademark are an Appreciated Asset: Trademarks can appreciate in value over time, and the more your business reputation increase, the more valuable your brand will be. Trademark offers value beyond your core business. Trademarks can lead the way for expressions from one business to another, such as from personal care to eyewear or clothing. If you desire it, your trademark can lead to your business’s acquisition by a big establishment. Trademark are a property asset and same to real estate that can be sold or bought, licensed (like leasing or renting) or used as a security interest to secure a loan to grow your company or business.
  • Trademarks are Inexpensive to Safeguard: Once your company’s name is registered for a trademark, it is valid for a lifetime with the filings of trademark renewal for every ten years after the trademark registration, which requires a very low amount. As long as your business or company goes, nothing can stay longer and provide long term opportunities and advantages than a trademark.
  • Trademark protects your business: It’s not mandatory to register your business with a trademark, but it helps or added a step for your business after the Trademark Registration. Once you registered your trademark, any competitor or unauthorized person cannot copy or misuse your registered company’s name for commercial purposes. If any third party or competitor tries to misuse or copy your company’s name, logo, or slogan, then the registered trademark owner has all the legal rights to stop or can also sue them for using the company’s name without taking permission from the trademark owner.
  • It does not create any Market Confusion: It provides customer convenience by allowing the customer to recognize the name, logo, or slogan of a company which products or services they would like to buy or to avoid purchasing. It also encourages companies or businesses to provide a consistent level of quality services or products and helping the customers to decide whether to buy a company’s product or service again or avoid it.
  • Trademarks can make hiring easier: Brands can motivate positive feeling in the minds of peoples. As an outcome, employment opportunities are more attractive to applicants. Employee retention can be higher if employees have a positive feeling for the products and services offered and the brand.
  • Financial Benefits: A registered trademark adds value and recognition to a business or a company. That’s why a well-established trademark of a business or a company enjoys a good reputation in the market. It also makes it easy to gain money from the stock market or borrow from lenders to spread into markets in other nations. Moreover, it also makes it easier to find collaborators and partners.


Above we mentioned the importance of trademarks for your business, and it is concluded that Trademark Registration should be a topmost priority when a startup is being established. It will safeguard your business from infringement, allowing its success in the long run. It is essential to secure a startup at starting in order to gain a profitable position and to avoid financial loss in the future.

Also, Read: A Complete Guide on Trademark Registration for E-Commerce Companies

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.


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