Consequences of Ignoring Brand Protection
Emily Young
A trade mark is a type of intellectual property (IP) that protects your business’s brand. Registering a trade mark gives you exclusive rights to use the mark in your industry. Failing to protect your brand’s IP or ignoring another business’s IP may have several consequences. For example, you risk financial consequences or damages to your reputation. This article will take you through six potential consequences of ignoring your own and others’ brand protection.
1. It May Damage Your Brand Reputation
If you do not adequately protect your brand, you put yourself at risk of damaging your brand’s reputation. If you fail to protect your brand, other businesses may use your branding style for themselves. This could lead to competitors providing lower quality goods or services in association with your brand. The consequence could be damage to your reputation over time.
2. You May Get Taken Advantage Of
Inadequate brand protection also puts your business at risk of another business exploiting yours. Without protection, your competitors can take advantage of your hard work and reputation by using your branding for their benefit. The law considers this as ‘passing off’ and there are legal consequences for engaging in this behavioural. However, without adequate brand protection, you risk not being able to enforce your rights.
3. It Decreases Your Brand Value
Your business’s intellectual property is its most valuable asset. Without protecting it, you risk diluting the value of your brand. Trade marking your brand is a great way to increase the value of your brand over time. Unfortunately, failing to protect your brand could cost you in the long run.
4. You May Get an Infringement Notice
If you use someone else’s trade mark without permission, they will likely enforce their trade mark rights over you. The first step in this process is sending you an infringement notice in the form of a ‘cease and desist’ letter. You can only send a cease and desist letter where there is a legal basis for accusing someone of infringing on a trade mark. Even if you did not know you were infringing on someone else’s trade mark, receiving this letter will require you to stop using or selling the product or service you infringed on. This can potentially have serious consequences for your finances.
5. You May Have to Go to Court
If you receive a cease and desist letter but continue to infringe on someone else’s trade mark, they may obtain a court order to try to stop you. They will also be able to claim compensation based on either their loss or your gain from the trade mark infringement. Going to court costs a lot of money, and it can also put your business’s reputation at risk.
6. You May Have Your Products Seized
If you infringe on someone else’s trade mark and import your goods from overseas, you risk having your products seized. A trade mark owner can request the Australian Border Force to seize infringing goods from being brought into the country. They will then have 10 days to take action against you in court. Having your goods seized can be a significant financial detriment to your business. Therefore, it is important to ensure that the products you are importing do not infringe on someone’s trade mark.
Key Takeaways
Your intellectual property is the most important asset of your business. Likewise, understanding the consequences of failing to protect your brand is essential. Failing to do and ignoring brand protection can lead to severe consequences for your business. Adequate brand protection will save you money and help preserve your brand’s reputation. If you need assistance in protecting your trade mark or ensuring you are not infringing on someone else’s trade mark, contact our experienced trade mark lawyers on 1300 657 423 or fill out the form on this page.
Frequently Asked Questions
A trade mark refers to the form of brand protection that allows you to distinguish your product or service from all of your competitors. You have exclusive rights to the usage, licensing and selling of your trade mark.
It is not a legal requirement to register your brand as a trade mark. However, registering your brand as a trade mark is a great way to protect your brand and ensure you are not infringing on someone else’s trade mark.
There are many benefits to protecting your brand with a trade mark. A trade mark can help protect your brand’s reputation, give your business credibility, and increase the value of your brand’s assets. It is also a good way to ensure you are not infringing on someone else’s trade mark, which can have financial consequences.
There is no fee to register a trade mark in Australia, but application fees differ depending on the number of classes of goods and services you apply for. There may also be other fees associated with registering your brand name as a trade mark, including requests for extensions of time or requests to include an additional class of goods or services in your application.