Does Online Merchants Require Trademark Registration for their E-Commerce Store?

E-Commerce Store
Karan Singh
| Updated: Jun 18, 2021 | Category: Trademark

While commencing the business of online trading, start-up always come across a common query- Whether is it essential to get a Trademark Registration for an e-commerce store? Well, the answer to this query is that Trademark Registration is not compulsory for an online merchant who is operating an online business or store. However, still, it is vital to safeguard the Intellectual Property Rights of a Company, whether it exists in a physical form or another such as an e-commerce store.

Transformation of Present Situation of E-commerce Store

Shopping through an e-commerce store has become very ordinary these days as it is favourable to buy things and with just a few click you can place your order without roving in the market. Today, most of the customers resist approaching retail shops and are not at mercy seller offerings specific merchandise.

The present situation of e-commerce store has entirely transformed the way we shop or buy goods. The increased supremacy of online stores has made the market client-centric rather than seller-centric. To work in the official space, online businesses do need to get registered for numerous government & tax-based licenses.

Besides, such businesses can also obtain Copyright Registration and Trademark Registration to present their Intellectual Property Rights. Though registration of Trademark is not compulsory, we severely advised you to obtain the same to avoid the upcoming complications. A Registration of a Trademark is the only way to protect the brand logo/name of a company from brand pirates.

Why E-commerce Store Require Trademark Registration?

Two decades ago, no one was aware of online trading or e-commerce store. The trading rule was dominated by the big & small retailer. However, as time progresses, the internet stretches its footprint all around the world that gave origin to the online business model.

This further set down the foundation for an e-commerce store. The supremacy of e-commerce store has led to the growth of different niche players’ deal with specialised products. Numbers of websites were presently working in this business domain in India. Since the success rate of this business model is significantly higher as per the present trends, it makes them a perfect applicant for counterfeiting.

Every year due to the violation of Trademark, e-commerce stores bear incredible financial loss. As the violation cases are increasing every year, it becomes cumbersome for online sellers to stay safeguarded for an extended timeline.

Protection to the Intangible Assets of the Company

Registration of Trademark weakens the chances of illegal access to Trademark or brand name as it permits the proprietor to file suit against the defaulter in the case of Trademark disagreement. Apart from ensuring complete protection of the company’s intangible assets, Trademark Registration fortifies the company reputation in the target market.

Risk of Brand Infringement and Scam

Start-ups are planning to step into the e-commerce business, the risk of brand infringement and scam is also high. Getting registration of Trademark for business name & logo could be beneficial in safeguarding the e-commerce store against the violation act[1].

With smaller e-commerce store may distinguish Trademark as a redundant thing, the expert advise that all online sellers aim to Trademark their intangible assets at the earliest to make sure full-fledge protection for their brand name or Trademark. This is specifically efficient if you are forecasting to dealing with distinctive commodities or services for sale.

Transfer the Load of Proof

Trademark Registration carries a legal right host for the proprietor that makes sure the full-fledged protection of the company’s intangible assets. Since the Trademark Registration creates the official presumption of the owner, it transfers a load of proof onto the individual raising objection rather than the Trademark owner in the case of a legal dispute.

What are the Advantages of Having a Registered Trademark for an E-Commerce Store?

The following section shows the advantages offered by the Trademark Registration:

advantages offered by the Trademark Registration
  1.  Business Protection: A registered Trademark can protect your company’s name and other precious assets from being used by others. It can protect the logo & name of the product available for the consumer market. A business holding a registered Trademark carries official rights that come in handy while setting the argument concerning the Trademark violation with another party.
  2. Grant Legal Right to Include the Infringing Activities: Brands under the protection of Trademark are less likely to get infringed by the defaulter. This is because of the fact that under the Trademark Act, the punishment for the violation act is quite strict. This ultimately aids in keeping the violators at bay.
  3. Offers Protection against Brand Damage: A Trademark can protect your brand from severe legal injuries. On the online-based platform, we can ensure 100% protection of our brand on a countrywide or world basis from being violated by defaulters using it, copying your product.
  4. Trademark Provides Pre-Emptive Rights: The Act of Trademark delivers the Trademark proprietor a pre-emptive right over the connected services and vice-versa. Hence, it restricts the Infringement Act when it comes to the same goods & services. It, therefore, differs from the earlier Act, which only provided protection from copying of similar goods, thereby building up the protection given to a mark.

Conclusion

Owing to unmatchable cost-effectiveness & convenience, e-commerce business has become an essential part of our lives. Unlike the conventional market, an online store is more user-friendly, reliable, and instinctive. Their increasing supremacy is slowly eroding the conventional market. Digitisation has given an edge to an online seller to gather easy profit without being hassling up with large expenditure. However, it would be better if you remember that profit comes with some risks. Successful online businesses are more vulnerable to the piracy of brand. The store can suffer substantial losses due to this, and the only solution to this problem is the Intellectual Protection mechanism.

To minimise such risks, the online seller should update the portfolio of Trademark in a timely manner. Moreover, an online merchant can choose an IP protection mechanism to protect their rights and interests and mitigate the pre-emptive registration and hateful complaints.

Read our article:Concept of Deceptive Similarity in Trademarks – An Overview

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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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