Are you an ostrich or a hawk?
It's understandable to want to hide your head in the sand when it comes to understanding intellectual property (IP). It can be complex. But the basic principles and strategies are easy to understand and I encourage you to get a hawk's eye view so that you can understand the basics and use IP to protect and improve your business.
Let's start with trade marks. Almost 900 new trade mark applications were filed in New Zealand in July this year. That number shows that many people understand the strategic advantages of registering their marks. I've set out below a short easy to read summary of these advantages.
By the way, registering doesn't need to be expensive. I have almost 20 years experience working in the big firms as a specialist trade mark and copyright lawyer. I now own a small specialist business called Woodhouse IP Limited so I have fewer overheads. You can now have bespoke expert service as well as reasonable costs that are fixed to suit your budget.
Here are some of the important strategic reasons for registering your marks:
1. It saves you money:
It can avoid unnecessary expensive conflicts because others can find your mark on the register when checking if they can use the same/similar mark. This is one of the reasons the register was created in the first place. You save money without even knowing it.
Registered rights give you leverage in disputes with other traders. It’s a bit like having third party insurance when you crash into an expensive car. What a relief! If you don't own a trade mark registration you can face serious costs for defending your position, even if you have strong use rights. You need to front foot this kind of thing rather than relying on an ambulance at the bottom of the cliff. With the high number of trade mark applications being filed each month, what are the chances that one of these will cover a mark at least similar to yours?
The Government can help you stop others registering confusingly similar marks. A trade mark examiner will usually raise your earlier filed mark as an obstacle to the registration of a confusingly similar mark by another party. Free surveillance services!
Your application/registration can form the basis for filing applications overseas using the Madrid Protocol system. This system provides a streamlined and less costly filing process. You generally need to own a trade mark application or registration in your home country to take advantage of the cost savings.
2. It makes you money:
Registered marks increase the value of your business. The goodwill and reputation you have established is often the most valuable part of your business. Your trade marks symbolise that goodwill and reputation. Prospective buyers will do their homework. Without a longstanding registration, they can’t be sure they will own those valuable symbols. So they may not wish to buy your business, or it may dramatically reduce the purchase price. You can try to register in retrospect. But what a risk to take so late in the day. It may uncover some serious and costly issues that’ll be a deal breaker, or it may simply be too late to claim the rights you could have owned. You need to take action early to build and maintain value.
A registered mark is an asset that can help you obtain funding to develop your business. Potential investors and lenders want to know your value. Add registered trade marks to your asset list.
3. You get stronger rights:
You can use the ® symbol beside your mark. This is a powerful deterrent against others using your mark, or anything too similar.
You have the exclusive right to use across the whole of New Zealand. If you’re not registered then your use rights only extend to the geographic area in which you have used your mark. You’re the one who would have to prove the extent of your use.
You can register a number of mark variations in one application. Variations can include upper case, lowercase, combinations of both, or even different colours.
You can claim a wider monopoly by strategically crafting specifications of products and services at the trade mark application stage.
Infringement can be easier to prove. This is because the test for infringing a registered trade mark includes the word “confuse”. This means consumers only need to be likely to have “cause to wonder”. This is a lower standard than the standards used under other grounds such as misrepresentation or deception.
Your trade mark rights can last forever assuming they are properly maintained. Many intellectual property rights such as patents and copyright only last for a limited period.
Contact me anytime to discuss your particular situation and I can tailor my services to meet your needs.