What do we mean by the term “startup”? According to the government notification, an entity will be identified as startup if it fulfils following essentials-
- Up to five years from the date of its incorporation/registration, if it is incorporated or registered in India;
- In any preceding financial year its annual turnover has not exceeded Rs. 25 crore;
- And it is devoted towards innovation, deployment, development, or commercialization of new products, processes or services driven by technology or intellectual property.
Startup can be seen as newly born self-making business, which is infused with new emerging thoughts, innovative products and effective marketing strategy, etc. An entrepreneurial endeavor can be extremely risky, and obviously it is. There are many concerns regarding whether or not it may be successful; what kind of competitors we may face; spending where and how much, and so on. Fortunately, there are some ways through which entrepreneurs can protect their brand, such as trademark registration, etc.
Normally, there are circumstances wherein startups ignore the need of such protection and then later realize its importance. Imagine a situation when you see an exact copy of your product or your own brand displayed by your competitor which is earning on your creativity and investment. However, you are all safe if you register the trademark before the establishment of your startup.
Benefits of Trademark Registration
In this ferocious competitive era, each business visionary needs to emerge from the group and assemble his own particular picture in the market. They would prefer not to leave any end loose to let other moving quicker, and, thus, right from the main day they begin concentrating on business advancement and attempt to separate themselves from their rivals. Thus, one must not neglect to register the trademark, at the end of the day, which is the initial step to ensure business character and make a specialty advertise for oneself.
Isn’t it true that you connect to an image of a company through its trademark? Thus, trademark registration is just not meant for protection, but also for publicity purposes it is important and essential. Trademark leaves an impression of your brand in the market. In this way, registration of the trademark is an initial step of promoting of startup.
Listing down the benefits and importance of trademark protection as follows:
- Trademark registration gives you a selective legitimate right over your business name, and thus protects your brand name and in any case of any infringement done by a third-party you can get a remedy against it. It further prevents competitors to act unfairly using similar brand names or marks.
- A registered trademark makes a strong name of your brand in the market. Trademark helps your brand earn esteem among other same level players, and thereby paves the way for your business or brand adding a legal value to your product.
- Trademark is normally considered as a valuable asset and is of high significance to a company. The more your business tends to grow, the more significant your image will be. It can make the route for expansion of your business.
- Trademark also leads to brand cogency and makes the name credible among the audience and consumers, which later grants monopoly to the startup at the initial phase itself, and thereby creating benefits in the market. It serves as an effective communication object, and in a solitary brand or logo, trademarks can pass on intellectual and enthusiastic traits and messages about you, your organization, and of course your organization’s products. They need not be only words, and can also include designs.
- The commercial market area is thronged with a lot of people and it’s difficult to recognize your business from your rivals. Trademarks serves an effective specialized tool to catch consumer’s attention and make your business capable of distinguishing your products from that of others.
Thus, through the Startup India Action Plan 2016, the importance of protection of the Intellectual Property Rights has been realized among the startups. A special focus has been given to trademark registration by startups. Trademark, copyright and patent serve as an important asset for any beginner or startup, and thus are important for them to survive in this competitive startup ecosystem.