What is the Significance of Trademark in Branding?

Significance of Trademark in branding
Siddharth Verma
| Updated: Nov 12, 2021 | Category: Trademark

The significance of Trademark in branding shall confer the exclusive rights to the owner of the brand by the state. It is essential to understand that trademarks play a significant role in branding to protect the owner’s exclusive rights from infringement. Examples of Trademark are signs, symbols, labels, logos, or design that portrays the service or product of an enterprise to distinguish it from others. Also, trademarks help build the goodwill of the enterprise and affix the brand’s name in the long term. Trademarks have now surpassed the value of a tangible corporate asset as one of the most valuable business assets. The significance of Trademark in branding shall commence with the Trademark registration, which provides ample privileges; the most important is that no one can violate your brand name and logo. If anyone does so, they would have to compensate the owner in monetary terms. This article discusses the role of trademarks in the branding of a certain product. This article discusses the role of trademarks in the branding of a certain product. 

What is Trademark?

Trademark is one type of Intellectual property rights. A trademark can be a word, phrase, symbol, design, which identities goods and services. Trademark helps enterprises to distinguish their goods and services from another in the marketplace. A trademark can be recognized as the goods or services; it also protects the brand or services and helps protect against counterfeiting and fraud. A trademark is a platform for communicating practically everything about a certain business to customers and providing grievance in brand awareness. Trademarks have now surpassed the value of actual corporate assets as one of the most valuable business assets. A trademark’s presence helps a business distinguish itself from its rivals and establishes awareness and dependence on such a brand. Registering a trademark has various benefits, the most significant of which is that no one may exploit their brand name or mark. If they do, they must reimburse the owner of the brand and Trademark financially.

What is Branding?

Branding means a marketing strategy to advertise the product or an enterprise in the market. It is the strategy that helps people to identify the brand quickly. The objective of branding is to attract the public at large and stakeholders for brand promotion. The branding can be done:

  • Advertisement 
  • Sponsorship
  • Partnership
  •  Product and packaging design
  •  Customer service 
  •  Pricing strategy 

Relationship between Brand and Trademark 

An enterprise needs a trading name under which it pursues its business and differentiates itself from another enterprise regarding products and services. When we talk about the significance of Trademark in branding, the Trademark shall have mainly two objectives. The first one is to represent the enterprise & its Business operations and create awareness of the brand among the public. An example of this is “D” from DOMINOS. The second objective is meeting a client’s demands and requirements for the quality of goods and services conferred to customers. Trademark is used to distinguish one brand from another. Smell and sound are also protected under the Trademark. 

Role & significance of Trademark in branding 

  • To differentiate one good or service from another; 
  •  Quality function It confers the value of the brand;
  •  Communication function, this function helps in marketing of brand public at large.

In this contemporary world, many business identities shifted towards intellectual property rights to protect their brand. Sometimes, many business enterprises do not register their brand with a trademark, resulting in litigation and monetary loss. Although, with the help of branding, many business enterprises promote their business through advertisement and enhance their purchasing power.

Since the relationship between the brand and the Trademark is concerned, the trademarks play a significant role in promoting the brand. It also helps in purchasing and selling goods and services. The collaboration between the Trademark and Brand leads to economic growth. 

Benefits of Trademark 

Mark of identification- Trademark is the mark of identification for a particular brand of the enterprise & with the help of the Trademark, it can easily be recognized in the market from other brands. For example –Adidas[1] manufacture footwear and affixed logos as Trademark on it, so with the help of Trademark, it distinguishes Adidas from other brands.   

Legal Protection- Once the Trademark gets registered, the trademark owner can file a lawsuit against the infringement of the Trademark. 

Having value in the Market- The brand can be easily spotted by the customer if the company registers the brand’s Trademark. Trademark increased the value of the brand in the market.

Trademark helps build up trust and goodwill- Serving good quality of goods and services under a registered trademark will help establish the company’s image in the market. It also addressed that the company is concerned with brand building, which conveys good values about the brand to customers or the general public.


The Significance of Trademark in branding grants the owner an exclusive right and differentiates the goods from comparable items from other enterprises. Trademarks serve as intangible assets for the owner, protecting the brand for an extended period. A trademark shall grant the owner the exclusive right to use such phrases, logos, numbers, etc. The brand should be safeguarded and safe in a market like India. As a result, having a trademark registration in India is necessary not because of coercion but because of need.

Read our Article:Validity of a Trademark in Case of its Non-Utilization

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Siddharth Verma

Siddharth has completed his graduation in law (BA. LLB) from Guru Gobind Singh Indraprastha University. He has a keen interest in doing extensive research and writing on legal subjects, especially on Civil, criminal and corporate Law. He is a creative thinker and has a great interest in exploring legal subjects.


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