Federal Trademark Protection –Significant Advantages

The Importance of Trademarks

Registering a trademark is an important step in any business venture—one that should not be overlooked. By protecting the name of your business, products or services, you ensure that others cannot use the trademarked words or designs. If you fail to secure such protection, anyone can start using your ideas, and in some cases they may demand that you stop using what they now claim is their trademark. When you have secured the rights to your trademark, it is an asset that holds value and can be sold or licensed to others. Therefore, registering a federal trademark is an essential component to any business.
Trademark – What Is It?
A trademark is a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods of one party from those of others.
There are two basic types of marks: trademarks and service marks. A service mark is the same as a trademark but with a twist. A service mark identifies and distinguishes the source of the service rather than a product or a good. For example, where Dodge is the trademark for a brand of automobile, “Ram Tough” is the service mark for the services offered—durable and reliable transportation.
Trademarks can be seen in various places. As you are driving down the street you may see the Ô or Ò symbol attached to the name of your favorite restaurant. You probably will start noticing these marks everywhere once you finish this article.
Placement of the trademark may differ as well. The trademark that identifies a product or a good can generally be placed on the packaging or the good itself. Since the service mark is not selling an object, the mark that identifies the services can be seen in the marketing or advertising campaigns.

Federal Trademark Protection –Significant Advantages

Generally, trademark protection exists on three levels: federal registration, state registration and by common law. Because of the significant benefits afforded by federal law, federal registration will be the focus of this article.
Basic trademark protection is used to protect your good’s name. A federally registered trademark gives constructive notice to the public of your claim to ownership of the trademark. Once you are registered, there is a legal presumption of your ownership and that you have the exclusive right to use your trademark nationwide in connection with the goods and/or services listed in your registration. You can use federal trademark protection to prevent others from copying or using your federally registered trademark.
You will have the ability to bring an action concerning your trademark in federal court. This is especially important if you wish to enforce your federal trademark rights. Without a federal registration, your rights are limited to the areas in which you use your trademark or those in which it has actually been used. So if you only obtain a Wyoming trademark, you cannot send a cease and desist letter to a business that is using the same name in Colorado. Your protection is limited to the state of Wyoming.
The use of your U.S. trademark registration can be the basis to obtain registration in foreign countries if you would like to expand your business globally. Federal registration can also give you the ability to file the U.S. registration with the U.S. Customs Service to prevent the importation of infringing foreign goods.
A federally registered trademark can also prevent others from using your trademark in a deceptive attempt to lure customers into purchasing their products or services while thinking they are purchasing your trademarked goods or services. Federal trademark registration provides comprehensive protection and enables you to prevent others from using any trademark that is the same or confusingly similar to your trademark. A federally registered trademark can also be used to maintain the public’s awareness and can ensure that you are the exclusive source of a particular product or service.
A trademark, like any other intellectual property right, is a business asset. Like all business assets, trademarks may not only be sold, but may also be licensed to others. A federally registered trademark can bring great value to your business. For example, not only can you sell your equipment, inventory and goodwill associated with the business, you can also sell your federally registered trademark(s) for your business name, slogan or logo. You have the flexibility to retain the rights to your federally registered trademark or to receive income by licensing it to others.