Answers to Your Frequently Asked Trademark Questions

Posted: 20 Oct 2012 08:00 AM PDT

Do you ever wonder what will prevent another company from using your business name? How about if you're legally permitted to use the name you picked for your business? Or do you know when you can use the TM symbol with your brand or product name?

Assembled here are all the answers to the most frequently asked questions when it comes to trademarking. If you're a small business owner, read on to learn more about the trademark, and most importantly, if you need one for your business.

What is a trademark?

A trademark is a word, phrase, symbol, or design (or a combination of any of these) that identifies the source of a product or service and distinguishes it from competitors.

What can be trademarked?

Trademark registration can be granted on distinctive names, logos and slogans. You might want to seek a trademark for a product name, company name, company logo, or tagline.

For example, "Nike", the Nike swoosh design, and "Just Do It" are all trademarks owned by Nike to distinguish their products from other athletic companies. But keep in mind that trademark protection only applies to a particular category of goods and services. Nike Inc. may own the mark on a variety of shoes, clothing, sporting goods, etc. But there's also a Nike Corporation in Sweden that's involved in heavy machinery, like hydraulic lifting jacks.

What's the difference between a registered and unregistered trademark?

Trademarks don't actually have to be registered with the USPTO (US Patent and Trademark Office). If your company creates a logo or name that you want to use exclusively, you can attach the TM symbol and this essentially gives you "common law" rights.

However, trademarks that are registered with the USPTO enjoy stronger brand protection (see "What are the benefits of registering a trademark?" below)

Also keep in mind that in order to claim first use to a name, the name has to be "trademarkable" (i.e. not already in use by someone else) and needs to be in use in commerce. For example, if you think of a cool company name, you will need to actively market and sell a product or service using that company name for your common law trademark to be valid.

How do I know if a name is available for me to use for my company, product, or service?

Before you incorporate or register your business with your state, you'll need to check the state's database of company names and make sure the name you want isn't already in use. Name conflicts are one of the main reasons many LLC, corporation, or DBA applications get rejected. At this point, you should also conduct a free trademark search to check if your business name is available to use at the federal level.

It's also important to know that you can still infringe on someone else's mark even if they've never formally registered it with the USPTO. For this reason, you should also run a comprehensive nationwide trademark search into state and local databases (beyond just your own state). This should include common law and county registrars.

When should I or can I use the trademark symbol? And what's the difference between TM and ®?

Before you have registered a trademark with the USPTO, you may use the TM symbol. After a trademark is registered with the USPTO, you have the right to use ® in your trademark. Many companies choose to use the TM or ® symbol with the first appearance of the company or product name in a document, and then drop the symbol for each appearance after that.

What are the benefits of registering a trademark?

By registering for U.S. Federal Trademark protection, you'll be eligible for several benefits, including:

Treble damages in some cases of infringement
The right to use ® in your trademark
A streamlined process for securing your domains and usernames at social sites like Facebook, Twitter, and YouTube
Significantly stronger protection than 'common law' (aka. unregistered) marks. This can make it much easier to recover your property, let's say if someone happens to use your company name as their Twitter handle.

If I've already registered my name with the state, do I still need a trademark?

When you incorporate, form an LLC, or file a DBA (Doing Business As) for your new business, this process registers your business name with your state's secretary of state. Before approving your application, the state checks that your name is distinguishable from all other business names registered in the state. Once approved, the business name is yours, and yours alone, to use within the state. This prevents anyone else from using your name within your state, but it doesn't offer any kind of protection in the other 49 states.

If you've started a business that's physically tied to your state (i.e. a hair salon or restaurant) and have no plans on expanding into other states, registering your name with the state or county might be enough brand protection for you. However, if you're planning on conducting business outside your own state (i.e. you sell a product or you provide services and some of your clients may live elsewhere), you should look into trademark protection with the USPTO.

How are trademarks registered and how much does it cost?

To register your business name, you'll need to file an application with the USPTO: you can file either directly with the USPTO or have an online legal filing service handle it for you. Expect to pay approximately $325 per class in application fees that your mark would fall under and the process can take anywhere from 6-12 months once you submit your application.

It's also smart to perform a comprehensive trademark search before starting the application process to make sure your name is available (you won't get an application refund just because your name isn’t available).

While the process of registering a trademark is more involved than registering a DBA, rights to your name will be enforced by both the federal and state governments. As you're getting your company off the ground, remember that your name represents your brand and business, so take the right steps up front to protect your identity.

Trademark Photo via Shutterstock

The post Answers to Your Frequently Asked Trademark Questions appeared first on Small Business Trends.

China and India Are The $10 Trillion Prize

Posted: 20 Oct 2012 06:00 AM PDT

Of all the plans General Motors had to rebuild itself—management invested millions into Oldsmobile and Pontiac before shuttering the two divisions—the most surprising success emerged from the rebirth of Buick. Buick survived due to an inadvertent sales growth in China. GM further invested in the division by sharing new, smaller models with Opel (An irony: Opel once shared models with another now-shuttered division, Saturn). This example shows how businesses can benefit when customers discover their products rather than forcing the market to notice.

To understand the aspirations of the growing Chinese and Indian middle class, be sure to consider the book “10 Trillion Dollar Prize: Captivating the Newly Affluent in China and India.” It was written collaboratively by Michael J. Silverstein, Abheek Singhi, Carol Liao, David Michael, and Simon Targett, leading members of the Boston Consulting Group (BCG). The publishers' copy impressed me with the level of detail applied to its mission to understand the increasingly influential middle class consumer market and the development of its leading industries. It's a thorough book, though its focus is meant for corporate firms rather than smaller businesses that are expanding globally.

How Chinese and Indian Household Budgets Are Transforming The Globe

Besides having names that are 5 letters long, India and China share economies which “in the next ten years…will have a substantial middle class for the first time in their history.” In fact, the book's title references the estimated triple economic growth by 2020. The authors clearly highlight the drivers for that history:

"These middle-class consumers will account for nearly half of consumer spending in the two countries by 2020. It is their new-found productivity and earning power that is underpinning the dramatic growth in consumer spending and providing people … with their extraordinary ambition, drive, and optimism."

Relying on their consultation experiences dating to 1980 for China and 1996 for India, the authors outline how Eastern economic growth factors into what happens in the West. The authors advise that businesses be more aware of which markets display increasingly intense price competition, and note how the occurrence affects a company's strategy.

"….it will become evident how the growth in demand from Chinese and Indian consumers translates into higher prices on all kinds of goods and greater demand for commodities—and the resulting supply squeeze on energy, water, and food. These supply shortages will ultimately trickle down….Such whipsaw inflation… will present companies in the West with new challenges—not only in China and India but also in their own backyard……In the United States, the lowest 40 percent of households earn $40,000 or less and, on average, spend roughly $3,000 per year on food….If, let's say, they faced a 10 percent increase in food costs (and that is a conservative estimate, given the possibility of a 50 percent increase in average corn prices over the next ten years), they would have to allocate an additional $300 per year…the boomerang effect to food: anywhere from half a week's to a full week's pay. Suddenly, all kinds of companies will have to face consumers who, no longer able to afford their products, will start to scrimp, save, and bargain hunt."

This sounds a bit intimidating, but the authors are mainly reflecting upon the global economy:

"In the wake of the global economic downturn, consumers in other emerging markets—as well as in the United States and Europe—are also bargain hunting, which means that companies must provide a unique value proposition: products that square the circle by being affordable and high-quality."

Entrepreneurs Increasingly Adept at Leveraging Their Markets

That squaring is buoyed by the enthusiastic attitude of India and China's business leaders. “Prize“ presents leaders who confidently address risk while applying marketplace and economic awareness in their businesses, whether it is the Family Li Imperial Cuisine, that competes with other developing restaurants in Shanghai, or in corporations lead by executives who had brought their formal US education back home. Caring how the business impacts community is at the heart of these considerations. Anand Mahindra, grandson of the successful Indian tractor and truck manufacturer's founder, noted in his Rise initiative how market share and enhancing quality of life should be linked:

"We are not simply focused on quantitative objectives such as market share. It is about giving back, improving life. In the agriculture group, for instance, it is about creating a second green revolution. We will rise by enabling other people to rise."

Quotes like this teach the reader how these suggestions come alive in practice, such as the advantages of packaging entry-level products for Paisa Vasool—the highest Indian praise for quality and value.

Small Business Trends readers should also pay attention to the comments on the consumer classes, particular those who aspire beyond entry-level. The noted observations compliment those of Shashi Bellamkonda about his experiences in India. (Read his post Selling to The Bottom of The Pyramid.)

Who will benefit from reading “10 Trillion Dollar Prize”:

Entrepreneurs who are interested in developing a deeper understanding of the differences among Indian and Chinese consumers.
Large businesses established in Western markets that want to connect to Indian and Chinese consumers more effectively.
Economic enthusiasts seeking a primer on India and China.

I did wish that more resources tailored to small business were mentioned. The information provided is great. The text is written with executive level suggestions and corporate resources in mind—one BCG playbook suggestion is to meet customers up close and personal to understand behavior and choices. A small business could use the suggestions as guidelines for selecting successful larger firms that have expanded into these markets. But even a large firm may want to learn about other organizations beyond the authors' own BCG firm to help apply this advice.

All in all, “10 Trillion Dollar Prize” is an excellent starting point for understanding how China and India are powering the global economy.

The post China and India Are The $10 Trillion Prize appeared first on Small Business Trends.

Small Business Trends

Sunday, October 21, 2012

Answers to Your Frequently Asked Trademark Questions

Answers to Your Frequently Asked Trademark Questions

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