Role of Trademarks in Startups.

TRADEMARK FOR STARTUPS: SAFEGUARD YOUR BRAND FROM DAY ZERO

INTRODUCTION

In the constantly evolving and fast-paced era of Startups, building a strong and recognizable brand is of utmost importance and is foundational step towards success. Entrepreneurs pour their creativity, resources, and hard-driven energy into creating unique and different identities for their businesses. But in a competitive market like India, where new ventures emerge every day, how can startups ensure their brand remains exclusively theirs? The answer to this question lies in securing a trademark for startups early in the journey.

A trademark is not just a legal symbol; it is the face of a brand. For startups, this is not merely a matter of compliance but a strategic move to safeguard their most valuable assets which is nothing but their own identity. Startups thrive on innovation, but innovation without protection is like  building a fortress without a gate! In India, trademarks operate on a first-to-file basis, i.e., the earliest filer probably gains the exclusive rights. This legal framework underscores the importance of early and timely registration of trademarks. Failing to do so may lead to devastating consequences, including the loss of hard-earned brand equity, and even forced rebranding.

In this bustling ecosystem of emerging startups, establishing trust and building credibility is crucial. Consumers gravitate towards brands they perceive as authentic and professional. A registered trademark signals that a startup is serious about its brand, fostering confidence among consumers and investors, indicating strategic planning and often making startups more attractive for funding. Thus, for Indian startups looking to make their mark globally, early trademark registration is not just a local strategy but a global necessity.

A ROADMAP TO TRADEMARK APPROVAL FOR STARTUPS IN INDIA

Trademark registration may seem like a heftily daunting legal process, however, breaking it down into manageable steps makes it much easier to navigate. For startups in India, understanding the roadmap to trademark approval can save time, money etc., while securing the foundation of a thriving brand. Here is a step-by-step guide to help startups along the way.

1) Conducting a Trademark Search

The first step is ensuring the unique identity of your brand name or trademark. A thorough search is important to conduct on the Indian Trademark Registry’s database to verify that no similar or identical marks are already registered or pending. This search helps avoid conflicts and strengthens the application’s chances of approval. Startups should also consider engaging legal professionals or using online tools to ensure a comprehensive search. Checking for phonetic similarities and marks in the same class is essential to ensure the chosen trademark does not unintentionally infringe on an existing one.

2) Preparing the Application

Once the trademark is confirmed to be unique after conducting the search, the application process begins. The application form (TM-A) requires detailed information, including:

  • The applicant’s detail 
  • Description of the trademark
  • Class of goods to be rendered or services to be provided
  • Date of first usage, if already in use
  • Representation of the trademark (device of the mark)

Applicants must also pay the prescribed fee, which varies depending upon their qualification as an individual/startup or corporate entity.

3) Filing the Application

The application can be filed online through the Trademark Registry’s official portal or submitted physically at one of the designated offices. Upon successful submission, the applicant receives an acknowledgement with a unique trademark application number. This number allows the startups to monitor the application status online and acts as a proof of submission, which can be useful if disputes arise during the process.

4) Examination by the Registrar

Once filed, the trademark application is examined by the Trademark Registrar to ensure compliance with the law. The examiner checks for:

  • Similarity with existing marks
  • Descriptiveness or distinctiveness of the trademark
  • Adherence to trademark rules and regulations

If the registrar encounters some issues, an examination report is issued, detailing objections or required clarifications. Startups must respond to this report within the stipulated timeline which is generally a month i.e., 30 days, to move forward in the process.

5) Publication in Trademark Journal

If the registrar raises the objections and they are taken care of in the response within the prescribed time, or if there are none/are resolved, the trademark is published in the Trademark Journal. This publication invites the public to oppose the trademark if they believe it infringes on their rights. The opposition window generally lasts for 4 months from the date of publication. If no opposition is filed, or if the opposition is resolved in favour of the applicant, the trademark moves to the next stage.

6) Receiving the Registration Certificate

Once the opposition period has passed, the registrar issues the trademark registration certificate, officially granting ownership of the trademark. The certificate is valid for 10 years and can be renewed indefinitely upon payment of the renewal fee. With the certificate in hand, the startup gains exclusive rights to use the trademark for the registered class of goods or services.

BEYOND THE BASICS: KEY STEPS TOWARDS SUCCESSFUL TRADEMARK FILING

Filing a trademark may seem straightforward, but the details behind a successful application require careful planning and execution. Many startups falter due to lack of preparation, leading to delays or even outright rejection of their applications. By understanding the critical steps involved beyond the basic filing process, startups can improve their chances of securing their trademark swiftly and effectively. Here is a deep dive into the essential steps that go beyond merely applying:

  • Exact match search– Checking and identifying the trademarks that exactly match the desired name, logo, or tagline.
  • Phonetic Similarity search– Identifying trademarks that may sound similar but are spelled differently.
  • Class-Based search- Ensuring that the mark does not conflict with existing trademarks in the same or related class.
  • International trademarks- For startups with global ambitions, checking international trademark databases for avoiding conflicts in other jurisdictions.
  • Understanding the business scope- Choosing classes that represent both current offerings and potential future expansions.
  • Avoiding Overlaps- Avoiding to select overly broad classes that may invite unnecessary Opposition or conflicts.
  • Using Multi-Class Applications-  If the business spans in multiple categories, a multi-class application can streamline the filing process.
  • Descriptive Marks- If the trademark merely describes the product or service, it may be deemed ineligible.
  • Generic Terms- Marks that are too generic and lack distinctiveness may face rejection.
  • Conflicts with Existing Trademarks- Similarity to an existing mark, whether visual or phonetic, may trigger objections.
  • Monitoring for Infringement- Regularly checking for unauthorised use of the trademark and taking an action with immediate effect if such use is detected.
  • Timely Renewals- Indian trademarks are valid upto 10 years and must be renewed before expiry to avoid losing rights over it.
  •  Expanding coverage- Consider filing international trademarks through systems like Madrid Protocol for startups planning global operations.

AVOIDING PITFALLS: COMMON TRADEMARK FILING MISTAKES STARTUPS MAKE

Trademark registration is one of the most critical steps a startup can take to protect its brand and identity. However, the process is not without its challenges, and mistakes can lead to delays, rejection, or even legal disputes. Avoiding common pitfalls may save startups valuable time, money, and resources while ensuring their intellectual property is secured. 

1) Failure in conducting proper research

One of the biggest mistakes that startups make is failing to conduct a thorough trademark search before filing their application. Without a proper search, there is a high risk of choosing a name, logo, or tagline that is already registered or pending approval by another entity.

2) Opting an overly Descriptive or Generic Trademark

Startups often choose trademarks that directly describe their products or services, thinking it will help customers understand their offerings. Unfortunately, trademarks that are too descriptive or generic are often rejected because they lack distinctiveness. Such marks cannot be legally protected, leaving the brand vulnerable to imitation.

3) Filing under the wrong trademark class

The trademark class system categorises goods and services into specific groups, and choosing the wrong class can jeopardize the application.

4) Delaying the filing process

Some startups put off trademark registration, assuming they can handle it after establishing their brand. This may very well lead to significant risks, including losing the chance to secure the desired trademark.

5) Incomplete or incorrect Documentation

Many applications are rejected due to incomplete or incorrect documentation. Missing information, errors in the application form, or failure to provide necessary evidence can stall the process swiftly.

6) Neglecting post-registration Maintenance 

Even after obtaining trademark approval, startups often neglect the ongoing responsibilities of maintaining their trademark. Trademarks require regular renewal and vigilance against infringement.

CONCLUSION

Trademarks are indispensable for startups aiming to build a strong, distinctive, and legally protected brand identity. From early filing to leveraging trademarks for global expansion, the journeys of successful Indian startups like Zomato, Paytm, OYO, Byju’s, Chumbak etc., underscore the strategic importance of securing intellectual property. A well-planned trademark strategy not only safeguards against imitators but also establishes consumer trust, attracts investors, and enables seamless growth across markets. By understanding and implementing efficient trademark practices, startups can lay the foundation for long-term success and carve out a unique niche in an increasingly competitive business landscape.

Author: Sanya Pandey, 4th Year law student at Symbiosis Law School, Nagpur

Link to Ipindia’ website: https://www.ipindia.gov.in

Wish to read similar articles? Click on the link to read more: https://jpassociates.co.in/role-of-ipr-startup-growth/

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