Written by : Rajiv Singh

A Chartered Accountant in UK with 15+ years of experience in FinTech Consulting, Accounting & International Taxation. I enjoy being a Social, Foodie and Father of two young children, reachable at linktr.ee/RajivSingh.

Top Promising Advantages of Trademark Registration in India

Rajiv Singh
Rajiv Singh, CA, FAIA

May 27, 2021 08:11

Many might wonder why trademark registration in India is so crucial. We are here to help you comprehend the reason with some gripping insights. Due to the growing world economy, commerce, and globalization, we all live in an age where entrepreneurship is always evolving to tap new avenues. In particular, the startups have become the new trendsetters. India had over 50,000 startups by the end of 2018. However, with the rise of these business endeavours comes the risk of embezzlement. One may have to face the misappropriation of business ideas, designs, and algorithms amidst the aggressive competition. Indian businesses can get a trademark registration in India to resolve such undesirable instances. The number of trademark registrations in India annually exceeded 3.15 lakhs in 2019, as per a survey.

What is a Trademark?

A trademark is a symbol, name of a product, word, or any other object registered under a specific company’s name. The trademark registration in India is carried out under the Trademarks Registry as per the Trademarks Act, 1999. A company can register its trademark in any of the four basic categories available. These categories are divided according to the protection it provides. These are ranked from the least to the most protected in the order as enlisted below-

* Generic trademarks:

It is the least protected trademark. This type of trademark could potentially lead to misuse by the holder since the language used is generic.

* Descriptive trademarks:

It is merely used to describe the product. The product needs to have distinctiveness from its other competitors to register a trademark in this category. Also, the word or phrase used in the trademark must be in commercial use for a minimum tenure of 5 years.

* Suggestive trademarks:

It portrays the qualities or attributes of the product, good, or service. The trademark falling in this group gets entitled to protection without the need for any secondary meaning.

* Arbitrary or fanciful trademarks:

These are the most protected types of trademarks. They include a term or phrase that actually has no relation with the actual product. These are mostly made-up names for the brands. The most notable example is Apple. The term apple has got nothing to do with the techno-driven services or goods of the tech-giant. The corporate entity has a trademark with the said name to sustain its distinguished identity in the relevant gadgets and electronics products’ niche.

Depending upon the need of the company, they can decide which trademark suits them the best.

First, let’s have a peek at the pros that Trademark registration in India brings to a business venture-

1. It gives the company exclusive ownership rights:

The owner of the trademark registration in India has exclusive rights to its use. The utilization of the particular idea or trademarked identity by any third party becomes illegal. The business entity retains the rights in its name.

2. With trademark registration, your entity gets a desirable asset:

Once you get a trademark registration in India, your business receives a worthy asset. The business owner or company owns the rights related to the trademarked product or service. It empowers them to decide whether they can sell the rights or set up a franchise. The business venture has complete authority over the trademark obtained.

3. It creates a brand identity for the company:

Getting a registered trademark leads to the creation of a brand in the eye of its customers. Trademark registration India will help you gain much-needed recognition for your products in the large market.

4. It helps differentiate your product from the others in the market:

The use of an exclusive trademark enables building a customer community. It differentiates the products from the rest of the counterparts in the market. For instance, Maggie has a registered trademark in the name of Maggie India, which helps differentiate it from other noodles brands available in India. The customers know the trademarked identity of the brand, which allows them to choose authentic products.

5. It protects your brand name against misappropriation:

Your industry’s competitors cannot legally copy your product offerings once you get a trademark registration in India. If you don’t have a trademark, you will be unable to claim sole right to the product or service. Thus, having a trademark gives you a legal right to your original product.

6. Trademark registration in India comes at a very nominal cost:

Post acceptance of your trademark registration in India, you need to pay a nominal registration fee. After the payment, you get to control your rights for the stipulated tenure. However, do remember that you need to renew your trademark after the term ends. The renewal cost is also very minimal in India. So you get the rights to your product for a long period at a cheaper rate in India.

7. Acts as the basis for global trademark registration:

Trademark registration in any country opens gates for global recognition. Since your product or service already has a reputation and trademark registration in India, it is easier for you to get global recognition. You can take your product reach to a worldwide scale easily and obtain an international trademark.

8. It attracts quality human resource:

Once your business gets a trademark registration, it becomes more lucrative for the masses. This factor enables your business to attract a virtuous workforce to the entity. After your business manages to carve a reputed name for itself, people tend to seek opportunities to join hands with you.

Indeed, trademark registration in India can prove to be a game-changer for your business. You should surely consider trademark registration as soon as you have a unique product or idea for your business.

A brief on the process of trademark registration in India

Getting a Trademark registration is a long and tedious process for any company, be it a set business or an emerging startup. The trademark registration in India takes 12-18 months for approval. The procedure involves trademark search, examination, and acceptance. Initially, the company needs to search if the trademark that they have selected is available in India. After the search and application for registration, the examination process starts. The assessment is based on the company’s requirement and the type of trademark required. After proper examination, the trademark is granted.

Trademark registration may seem like a strenuous task. However, with expert backing, it gets quite easy-peasy.

Ease your stress related to Trademark Registration in India with Gotaxfile!

Gotaxfile is at your service to lower your concerns about trademark registration in India for your venture. We are a firm that can aid you with myriad business compliance needs such as trademark registration with just a click. Right from setting up your company to registering your trademarks, Gotaxfile is ready to lend a helping hand. Our team helps you in every aspect of business formation. All you need to do is log in to our website and start your entrepreneurial journey without worries. Contact us now to hire our professionals!

Rajiv Singh
Rajiv Singh, CA, FAIA

May 27, 2021 08:11

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