The Importance of Trademarks in Brand-Building: The Ultimate Guide to Trademarking

Updated: Oct. 8, 2024

Brands don’t stand out and succeed unless they’re unique, recognizable, and have a signature style that’s undeniably theirs and theirs alone.

Think about the logos of the most popular brands out there. What do you think when you see the Nike logo? Hard work, perseverance, and determination. What about Coca-Cola? Happiness, acceptance, and diversity.

With one look at these brands’ logos or signature colors, they can convey an intellectual and emotional message to the world. And that type of incredible brand recognition starts with a trademark.

But what exactly is a trademark and why it’s one of the most powerful tools for brands? That’s what we’ll be discussing in today’s post. Let’s jump right in!

First things first—what is a trademark?

A trademark is a type of intellectual property at its most basic level. It consists of an easily recognizable sign, design, or expression that distinguishes one brand’s products or services from others.

For brands, that typically means logos, slogans, color schemes, and other design elements that solidify a company’s aesthetic branding. When you trademark these elements, you legally protect them, and your business gets the exclusive rights to use them.

There are two types of trademarks. The first is a common law trademark, which is put into place automatically when you market your brand with a certain name or logo. It doesn’t need to be registered, but it only gives you protection in your state.

The second type is a federal trademark, which you must file with the United States Patent Trademark Office. This type protects your trademark across all 50 states. Any legal entity, whether a business, organization, or individual, can apply for trademark registration.

The unauthorized use of trademarks by producing and trading counterfeit consumer goods is known as brand piracy, and the trademark owner can (and should) pursue legal action against trademark infringement.

What can and can’t you trademark?

Typically, brand owners will trademark a business name, slogan, logo, or color scheme, but you don’t have to limit yourself to those things. You can trademark anything you can associate with your brand as long as it’s unique and not too generic. You can go as far as trademark smells to protect your brand.

When it comes to what you can’t trademark, there are plenty of rules, too. These are examples of things that aren’t allowed to be trademarked:

• Generic words and common phrases
• Descriptive words that have nothing to do with the business name
• Vulgar and obscene language
• Religious passages and phrases

Where can you use your business’s trademark?

If you own the rights to a trademark, you can use it on anything you want. Here are some of the many avenues you can use your trademark:

• Product packaging
• Shopping bags in your brand’s physical stores
• Billboards and other forms of outdoor advertising
• Content marketing on social media
• Storefront signage
• Brand merchandise, from shirts to mugs
• Business cards, email signatures, and company IDs for employees
• Press releases, newsletters, and any other type of publication or written statement

What is the importance of trademarks in brand-building?

Are trademarks really that important to a business? Yes, they are. Not only do they help safeguard the branding you worked so hard to nail for your business, but they allow your brand to reap other invaluable benefits, too. Here are just some of them.

• It provides instant brand recognition for consumers

The power of a trademark lies in its ability to be both a communication and branding tool, speaking for your company even when you’re silent.

And it makes total sense. Think about it. When you see the Apple logo on the back of someone’s smartphone or laptop, you don’t need to ask them anything else about the product. You instantly trust that it’s highly advanced, ingenuous, and forward-thinking.

It also makes it easier for your loyal customers to find you. It’s not easy to get noticed in such a crowded marketplace. But trademarks cut through the noise and clutter, reducing confusion among customers and making it easy for people to find your products. This improves the customer experience tremendously.

• It protects your brand name and logo from getting stolen

A federal trademark legally protects your brand and its signature design elements from other people and businesses using them without your permission. This is infringement, and it’s against the law. If you have trademark protection, you can sue anyone who infringes on your business name, logo, slogan, and other trademarks.

Think of it like a copyright but for a brand instead of works of art and literature. It protects your brand’s unique intellectual property, preventing potential conflicts like other brands making money off your hard work.

• It can appreciate your brand’s value over time

The better your business’s reputation, the more valuable your brand will be. This can pave the way for expansion into other industries.

Like real estate, trademarks are property assets that can be bought, sold, licensed (like renting or leasing), or used as a security interest to secure a loan to grow your business. The more popular and well-loved your trademark is, the higher you can charge for any of these.

• It can boost employee morale and retain talent within the company

Brands like Coca-Cola, Apple, and others inspire positive feelings in people’s minds. The result? Employment opportunities become more attractive to candidates. Who doesn’t want to work for a company that is so well-loved and perceived to make a positive impact in people’s lives, right?

Not only that, but employee retention can also increase. That’s because employees want to feel proud of where they work. People love, respect, and look up to the brand they work for, boosting employee morale and brand loyalty.

What symbols can you use for brand trademarks?

When an entity claims the rights to a particular mark, it uses “TM” (for a trademark) or “SM” (for a service mark) to prove that the mark is trademarked. Businesses using a common law trademark can use these symbols next to their brand name for anything they want.

The symbol “®” can only be used for goods and services federally registered for a trademark. Additionally, the ® symbol may only be used after the mark is successfully registered with the government, not while an application is pending.

These symbols serve as a notice to other business owners that you have trademarked your business. It tells them that they can be sued for infringement if they try to steal your brand name, logo, slogan, and design elements.

Fun fact: Trademarks never expire in the U.S.

Yup, you heard that right. Trademarks can technically last forever. The only rule is that a trademark stays active if used in commerce and religiously renewed with the United States Patent Trademark Office every 10 years.

That means once you’ve registered your trademark, you have exclusive rights to it as long as it’s used in business. Sure, the process is time-consuming and intimidating, but the fruit it bears lasts indefinitely. This allows you to build a lasting legacy for your brand over time.

Make your mark with Inc Authority today!

At Inc Authority, we understand the tremendous value of trademarking, but also how tedious the registration process can be for busy business owners. That is why we offer trademark application as one of our premium services.

Don’t have the time to do the registration process yourself? We can offer you our Federal Trademark service. It includes:

• Comprehensive U.S. Search: To ensure you don’t have the same or a similar mark as another business.
• 24-Hour Expedited E-Filing: We can ensure to deal with your filings as fast as possible.
• Trademark Specialist: Our team has numerous trademark specialists who can give you peace of mind and expert advice as we handle your application.
• Government Filing Fee: We will help you file necessary government requirements and handle the fee payments, so you don’t have to.
• Lifetime Customer Support: If you have other concerns or pertinent questions about the trademarking process, our team is always ready to help and answer your queries.

So, if you want your business to be counted among the greats, put yourself on the map and go down in history with a brand trademark!

Incorporating is the most powerful thing you can do to legitimize your startup. And at IncAuthority.com, our setup LLC services are 100% free. Always. So, don’t wait. Form your new LLC today and enjoy the protection due to you and your business under the law.

Incorporating is the most powerful thing you can do to legitimize your startup. And at IncAuthority.com, our setup LLC services are 100% free. Always. So, don’t wait. Form your new LLC today and enjoy the protection due to you and your business under the law.

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