3 Benefits of Trade Marking Your Company Name
Registering your company name with the Australian Securities and Investment Commission (ASIC) is the first step to starting your business. However, if you intend to prevent other people from using your company name, you should also trade mark it with IP Australia. Securing your intellectual property in your company name early sets a good tone for your business. It allows you to focus on your business without worrying about other parties moving in on your valuable clients by using your company’s name and associated reputation. This article will explore some of the benefits of trade marking your company name.
Benefit #1: Protect Your Business Name
The biggest reason to trade mark your company name is that it protects your company name from being used by other people or companies. This means that you protect the valuable goodwill that you have created in your business. Additionally, protecting your intellectual property from third parties is key to developing a business that will build recognition and become successful.
It is important to trade mark your company name if you rely on that name in the course of your business. However, it is not as important to trade mark the name of all of the companies in your business structure.
For example, suppose you have a main trading entity called ‘Colourful Coffee Cups Pty Ltd’ and a leasing entity called ‘Colourful Coffee Cups Leasing Pty Ltd’. In that case, you likely only want to trade mark your main entity. This is because it is unlikely that you would be concerned with protecting the intellectual property in your special purpose leasing entity. However, it is conversely very important to protect the name of the coffee cups you sell on the market.
Benefit #2: Licence the Use of Your Name
If you intend to franchise your company or licence certain goods or services to other people, trade marking your company name will allow you to do this. Licensing your company name for use by other people can be a great way to expand into other markets without having to pay as much money. You can set up franchising agreements that govern the use of your:
- company name;
- associated intellectual property; and
- business processes.
For example, suppose you own a company called ‘Unforgettable Tyres and Chassis Pty Ltd’. You may want to trade mark that name to prevent other people from using it when selling their tyres and chassis on the market. Furthermore, if you want to franchise this business to other stores, you can include the name as part of the franchising pack.
Benefit #3: Strengthen Your Brand
Registering a trade mark for your company name strengthens the value of your brand. It allows you to develop the value of intellectual property in your company that you can further capitalise on. Having valuable intellectual property can even increase the sale price of your company if you decide to sell it at some stage. A robust intellectual property portfolio is something potential investors check before making a business purchase. Therefore, having a trade marked business name is a valuable move for your business’ finances.
Before deciding whether to trade mark your company name, you should consider:
- whether your company name can be trade marked;
- how you are going to use your trade marked business name; and
- how long you intend to operate your company under its current name.
If you have any questions about the benefits of trade marking your company name or need any other trade mark legal assistance, contact our experienced trade mark lawyers on 1300 657 423 or fill out the form on this page.
Frequently Asked Questions
Registering a trade mark for your company name protects your intellectual property. It allows you to stop other parties from using your company name and allows you to licence other people to use it if you so wish.
You can enter into a licencing agreement with anybody who wants to use your business name. You can charge a fee for this service. However, be careful who you licence to, as they might not treat your valuable intellectual property as well as you do.
A trade mark is valid for ten years from the date of registration. You will need to renew your trade mark on or before the tenth anniversary of registration. However, if you are late, you have six months from the date of registration to lodge a late renewal. You will need to pay a fee for each month your renewal application is late.