Trademark for MSME: An Asset for Growth

MSME stands for Micro, Small and Medium Enterprise (MSME), was introduced in agreement with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 by the Government of India. MSME are entities involved in the manufacturing, production, processing or preservation of the goods and commodities.

 The Government of India has always supported MSMEs by providing different reliefs and schemes for MSMEs. With the recent “Make in India^[1]” it has made trademark the most important intellectual property asset for the MSMEs. Hence, the MSME now stand a chance to mark their existence even more extensively. Therefore, trademark for MSME has proved to be an asset for growth and this blog shall provide more details on the same.

Why is trademark important for MSME?

A trademark helps the companies in establishing their brand identity and prevents any other company from unlawfully infringing it. Hence, trademark registration is an important step for all companies.

• Additionally, to encourage the micro, small and medium enterprises and startups, the registration fees of trademark for MSME was significantly reduced. Hence, the registration of trademark for MSME is a cost- effective and simple process that can be done online.
• Brands have evolved with time and have become subjective now. The logos and names are just a portion of what a complete brand is and it serves as a business card. The complex part of a brand consists of various elements namely image, culture, identity, character, personality, reputation and essence. This will make it easy for any MSME’s brand, to make their products easily identifiable and accordingly provides their business with a competitive unchallenged advantage in the market.
• The main purpose of Trademark for MSME is to basically register a brand name, so now it is possible to stop anyone else from using the similar or same brand name as the registered trademark is the legal right and certificate to stop everyone from using.
• Trademark for MSME acts as a defense mechanism for protecting the MSME brand in losing its reputation and also to retain a healthy and trustworthy relation with the existing customers.
• A trademark for MSME creates a brand that has the possibility to increase the value of the business as an intangible asset and to use as guarantee for obtaining finance from any financial legitimate institutions.
• Trademark for MSME protects the brand by putting an emotion that the customers feel with a brand. But it is important to get the trademark registered to protect the brand.
• The MSMEs must remember that trademark for MSME will protect their customers and clients from using a duplicate of the products or services, and in such a situation it becomes important that customer oriented MSMEs, empower the customers to identify the duplicate in the market.

What Is Trademark for MSME Registration?

A trademark is any brand name, logo, symbol, or logo that helps the consumers in identifying their products and services. Trademark helps in distinguishing the products from of competitors in the market. It can include anything from a single word, phrase, number or colour combination that helps in setting the business apart.

Therefore, trademarks play an important part in creating an image or a brand identity for the company. Registration of Trademark is the legal process by which the companies secure their exclusive ownership right on the name, logo or mark used for business purpose. Hence, MSME trademark registration is the process in which the MSME companies can register and secure by giving legal protection to their brand name, symbol or logo in India.

How can trademark for MSME be a good asset?

Trademark for MSME acts as a trade-able asset and like any other asset of the MSME, the trademark can be

• sold,
• licensed or
• purchased

in accordance with the needs of the MSME. It is also possible for the MSME to sell their complete business while at the same time retain the control of their brand names and logos, i.e. trademarks. The MSME can also license that trademark to several other manufactures in the market.

Who should go for trademark MSME registration?

Any business organization may apply which includes Company, Partnership, Company and Sole proprietors which fall under any one of the following mentioned criteria:

• Micro manufacturing enterprises- with investment less than Rs. 25 lakh in plant and machinery,

While micro service enterprises with less than Rs. 10 lakh invested in equipment.

• Small manufacturing enterprises – with  Rs. 25 lakh to Rs. 5 crore invested in plant and machinery,

While small service enterprises anywhere between Rs. 10 lakh and Rs. 2 crore invested in equipment.

• Medium manufacturing enterprises- with Rs. 5 crore to Rs. 10 crore invested in plant and machinery,

While small service enterprises anywhere between Rs. 2 crore and Rs. 5 crore invested in equipment.

Documents for Trademark Registration of MSMEs

1. Complete contact details, Address proof and the ID proof of the applicant
2. Certificate of incorporation in case of Company or partnership deed
3. Address proof of the company
4. The Copy of the trademark or logo
5. Udyog registration certificate

Benefits of trademark for MSME Registration

There are several benefits for registering under MSME and further getting the trademark registration for the same secures the business for long run. Few of the benefits are given below:

Conclusion

Therefore, it is important for the business enterprises planning to register under MSME to get their business registered under trademark and avail the long run benefits under both the trademark and MSME.

Read our article:Among Trademark owned by a Promoter or Company, Which One is Better?