Why it’s Crucial for your startup to register for a Trademark?

Why it’s Crucial for your startup to register for a Trademark

By Hrishikesh Datar, CEO of Vakilsearch

India has seen steady growth in the economy and one of the major factors is the mushrooming of startups and small-medium enterprises. The initiative by the government under Start-Up India is encouraging small businesses to register themselves in order to be recognized under the programme.

However, like the phrase goes ‘Too much is dangerous,’ the evolving nature of startups has also given rise to Intellectual property disputes, infringements, fraudulence etc. While startups can often be associated with ‘innovation’, the same is not being protected and there are higher chances of the businesses getting lost in the ocean of startups.

According to recent research, 83,761 trademark registrations have been done in India during the Q1 period of April- June 2019. In June, total trademarks registered declined by 5 % in comparison to May. However, comparing June to April, there has been an approximate 6% dip in Trademark Registrations.

A trademark is given to identify a brand as being unique in name, logo, colour or designs used, symbols, letters and to distinguish itself from other goods and services in the domain. Startups need to register their trademark rights from its inception irrespective of the growth. This will enhance the business by getting recognized and also avoid situations where a third party or competitor claims the IP rights. Also, the investments made in advertising and campaigning about the brand will be protected and prevents other people to misuse the brand name or logo. It is always advisable to do a trademark search before getting connected with the customers. Registering the Trademark will ensure that there is no doppelganger in the name of the product or service and the direct outcome imaginable of having to re-brand.

Though a lot of startups may feel this is an additional cost on their business it is to be noted that there has been a waiver in the Patent and Trademark Registration fee for startups by 80% and 50 % respectively. Thus, the cost borne by a startup in doing the IP registrations is not as expensive as compared to non-startups.  Today, digitization of legal procedures has made businesses to establish themselves quicker and simpler. The government under the startup India has provisions to file tax, register companies, Intellectual properties etc everything at the click of a button. A lot of online legal platforms are also in the run to urge entrepreneurs to take one simple step in order to achieve their business goals.

About Neel Achary 18873 Articles
Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.