Everything You Need to Know About Trademarking Your Business

Updated: Sept. 26, 2024

Nike. McDonald’s. Disney. These businesses are easily identified in the marketplace as some of the most widely recognized trademarks, logos, and slogans. Because these huge companies went out of their way to trademark their business, they’ve become household names today.

And while many business owners wonder whether trademarks are important to their business success, the answer is a resounding yes. Keep reading to learn more about trademarking your business and why it’s the best move you can make to protect your brand.

What is trademarking? 

A trademark is a word, phrase, sign, symbol, or design element that identifies and distinguishes products or services of a particular source or company. This can include brand names, logos, slogans, and even unique product packaging. Registering for a government-recognized trademark with the United States Patent and Trademark Office (USPTO) gives a business the exclusive rights to use those elements.

USPTO rules maintain that to be eligible for a trademark, it must be distinctive and in use in commerce. You can’t trademark anything another business uses, as well as generic descriptive words and common phrases. Religious passages are out of the question, too.

Trademarks are different from copyrights because while the former protects your business name and design elements, the latter protects artistic work, like music and literature.

The two kinds of trademarks

There are two kinds of trademarks in the business world—common law and federal trademarks. 

Common law trademarks are unregistered service marks that automatically arise when using a specific business name, logo, slogan, or color scheme. You don’t have to file anything with USPTO to enjoy the benefits of this type of trademark. However, your protection is limited to your general geographic area only.

Meanwhile, federal trademarks are officially registered with the USPTO. While common law trademarks are state-specific, federally registered trademarks are recognized in all 50 states. Issues arising from trademark infringement can be tried in a federal court.

The benefits of trademarking 

Not convinced about why you should apply for a trademark? Here are just some of the many benefits of trademarking your business.

• Establishes your unique brand identity: Having a trademark helps consumers distinguish your business from your competitors. It gives you a signature look, style, and brand name only you can use.
• Legally protects your intellectual property: Trademarks protect your brand legally protectable against infringement. No other business can use your trademarked name, logo, slogan, or design element. 
• Boosts your brand’s credibility: When you successfully register for a trademark, you can use the coveted ® symbol whenever you mention your brand name. This makes your brand look legitimate, helping to increase its credibility and trustworthiness among consumers.
• Helps customers make confident purchasing decisions: When customers see your trademark on a product they want to buy, they know it’s legitimate. This allows them to shop for your goods and services confidently and reduces confusion with other brands that might adopt the same look and feel in their packaging.
• Encourages healthy competition in your industry: Your competitors aren’t allowed to copy or imitate your trademarks. This forces them to come up with their own unique, creative ways to present themselves to consumers, which encourages healthy competition.
• Can make your brand name valuable over time: The more popular and easily recognizable your trademark is, the more valuable an asset it becomes. You can immensely benefit if you choose to license or sell your brand in the future.

What happens if someone infringes on my trademark?

If you catch another business infringing on your federal trademark, you can file a lawsuit against them. According to USPTO, if you can successfully prove that the defendant did indeed infringe on your trademark, you can potentially reap the benefits of these remedies:

• A court order demanding for the other business to stop using your trademark.
• A court order requires the defendant to forfeit or destroy their assets using your trademark.
• Monetary compensation for attorney fees and damages after another business uses your trademark.

When should businesses apply for a trademark?

Business owners should begin the trademark application process when they file their LLC or corporate paperwork. After all, filing for a trademark before actually launching a business means you can guarantee that protection of your name begins before you start selling any goods and services.

Before applying for a trademark, conducting a complete search of your mark is very important. Doing so may detect potential problems, such as confusion with another service mark. USPTO will not search your mark before applying, so a search can help you save money and keep you from applying for an existing trademark.

You can easily search the trademark you want to apply for through the USPTO trademark database.

How much does registering a trademark cost?

Creating a common law trademark is free since you don’t have to register it with the government. Meanwhile, federally registered trademarks cost a minimum of $250 and can easily go up to almost $1,000 per trademark.

It may seem like a hefty price for some small business owners. But trust us—the peace of mind and legal protection it provides are going to be more than worth it in the long run.

Form your LLC and safeguard your business with a trademark today!

Registering for a trademark is invaluable in today’s ultra-competitive business world. When you set up a business, it should be one of the first things you do. That way, you can avoid the headache of legal disputes due to trademark infringement, all while enjoying the benefits of a brand name and design that is truly yours, nobody else’s.

The process of registering a trademark with USPTO can be lengthy, tedious, and intimidating. So, it might be a good idea to hire experts to help file your trademark for you. Ideally, this should be the same service you hire to form your LLC. 

We at INC Authority can help you through the entire process of building a brand, from forming your company to trademarking your business. So, what are you waiting for? Form your free LLC today with our help!

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