PROTECT YOUR TRADEMARKS

PROTECT YOUR IDEAS

FREQUENTLY ASKED QUESTIONS ABOUT TRADEMARKS


  • What is a trademark?

  • What are the types of trademarks?
  • What are good trademarks?
  • What are the problem trademarks that should be avoided?
  • How long does a trademark last?
  • How do you get the rights in a trademark?
  • How do you select a trademark?
  • What is the process to register a mark?
  • Can I begin the registration process early?
  • What value is there in registering my company's trademarks?
  • Can a trademark help my company compete?
  • Are trademarks more important that patents?
  • What does the trademark procedure cost?
  • How can you lose a registered mark?

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    What is a trademark?

    A trademark or service mark is a word, name, symbol, design slogan or product shape used by a manufacturer or seller of goods or services in association with the goods or services to indicate the origin of the goods or services and to distinguish his goods or services from those of others.


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    What are the types of trademarks?

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    What makes a good trademark?

    Return to Table of Contents> A trademarks quality is judged in terms of its strength. If called upon to defend the rights to the use of a trademark, an attorney would prefer a strong mark. The strength of a mark is determined by the amount of its association with the product or service. Contrary to popular belief, the LESS a mark is associated with the goods the strength it has when it is first put into use. These are arbitrary marks, such as the legendary "KODAK", which have no meaning in any language. These are purposely coined words which are the most difficult to make. The other type of mark which is almost as strong is the fanciful mark composed of a word or words which cannot ever be contrued to have any reference to some quality of the product.

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    What are the problem marks that should be avoided?

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    How long does a trademark last?

    Rights in a trademark will exist so long as the mark is used. However, once a trademark is abandoned, all rights in it can be lost and any other person may begin using the mark and acquire rights therein. A federal registration lasts for 10 years and can be renewed for subsequent additional 10 year terms.
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    How do you get rights in a trademark?

    Rights in a trademark are acquired throughout a geographical area through use of the mark in association with the goods or services. ownership of a trademark prevents others from using a similar mark for goods or services which would create a likelihood of public confusion as to the source or sponsorship of the respective goods or services. Public confusion is determined by the similarities of the respective marks and the similarities of the goods or services, as well as the channels of trade in which the goods or services are:marketed.
    Mere use of a trademark will create common law rights for the geographical area in which it is used and a state registration may be obtained giving state-wide protection; however, if a mark is used in interstate commerce, then the mark may be federally registered and thereby acquire significantly broader federal rights.
    A major change in U.S. trademark law went into effect on November 16, 1989. Whereas prior to this date, one could file a U.S. application only if the mark was actually being used, the new law allows applications to be filed with the U.S. Patent and Trademark Office based on a declared bona fide intent to use the mark. The application will be examined like any other application; however, if allowed, the registration will not issue until a declaration of actual use is filed with the U.S. Trademark Office.
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    How do you select a trademark?

    Before selecting a trademark or servicemark there is a test that should be performed that is used by trademark attorneys and the court system when comparing marks. Most people who need to come up with a trademark try to include some words that have some to do with the product. This makes common sense, since it is easy and the mark will relate to the directly to the product. Under trademark law, however, this is absolutely the worst approach to picking a mark. The real story is the less a mark has to do with anything even remotely related to the product the stronger the mark will be when it is first introduced to the market. The reasoning for this is the ultimate test of the strength of a mark is its distinctiveness in the mind of the consumer. If a mark incorporates words that are descriptive of the product, then it cannot be strong, at least not initially. The public will not immediately associate the product as coming from a certain manufacturer, but must eventually sort out that mark from others like marks or descriptions of products. A mark that does contains some words that are descriptive of the product can become strong, but it is a costly, uphill fight. A good example of this is the well-known mark "International Business Machines." Notice that every term in the mark is descriptive in some way of the product. If this were a new company today, this would be considered a non-inherently distinctive mark. In order to gain a mark that is protectable, the mark must gain recognition that the mark, in additional to its literal meaning, has acquired a secondary meaning, that is indicating the source of a product. This recognition is usually gained through advertising and marketing; the more widespread the better. There are, however, other factors that may impede this effort, such as other similar marks. It is very difficult to rise above a crowd in this case. It is far, far better to start with a good well chosen mark, which has been thoroughly researched than to fight this battle and possible litigation. Remember, if you are a start-up business, you cannot afford to get into a lawsuit. Here are some of the factors to consider when selecting a trademark:
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    What are good trademarks?

    "Arbitrary " marks consists words that are in everyday usage but in no way describe a particular quality of the product. Examples include ARROW for shirts, MUSTANG for cars, SUN for a bank, APPLE for computers. All of these marks have a dictionary meaning, but that meaning is in no way descriptive of any quality of the product or service. This category has the advantage that these are strong marks in that they are inherently distinctive and protectable. Also, it relatively easy to select an arbitrary mark, but you still have that problem marketing preference for marks that are easy to tie into a product.
    "Fanciful" marks can be made-up or coined words that have no meaning in our language, but are purely design to be a trademark. A classic example is the mark "KODAK" which has no meaning whatsoever. This type of mark is considered to be the most distinctive. It is extremely easy to enforce in its own product line and can be enforced in any product line in which the company might logically enter in the future. The only problems with these types of marks is that they are very difficult to coin. Also marketing departments usually tend to like marks that contain some words relevant to some quality of the product. It is always a battle between the trademark attorney, who wants a mark that is easy to defend and the marketing people. Consequently, there are not that many marks that fall into this category. Some include CLOROX, EXXON and POLAROID. Some others were in this category, but because the public began using them as generic terms they are no longer considered to be trademarks, for example Aspirin, Cellophane and Escalator. Currently, XEROX is fighting the battle against their mark becoming a noun or a verb.

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    What are the problem trademarks that should be avoided?

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    How long does a trademark last?

    Rights in a trademark will exist so long as the mark is used. However, once a trademark is abandoned, all rights in it can be lost and any other person may begin using the mark and acquire rights therein. A federal registration lasts for 10 years and can be renewed for subsequent additional 10 year terms.
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    How do you get rights in a trademark?

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    What is the process to register a trademark?

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    What does the procedure cost?

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    Can I accelerate the registration procedure?

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    What is the value to my company in registering its trademarks?

    The most valuable asset of many businesses is its ownership of the trademarks that it has developed. Without the exclusive rights to use certain trademarks a company would have to rely upon the public's recognition that the product itself came from a certain supplier. This is unrealistic. Products are constantly coming into or going out of the market. It is the mark on various products that gives the buying public a clue as to who is the source of a product and the quality that the buyer can expect from that company. In a crowded marketplace a company's trademark and the reputation for quality that it signifies may be the only distinguishing featureof that company's products. In many ways a trademark can become the essence of the company and what it stands for. This is the reason that established companies systematically obtain federal protection for every trademark or trademark variation that they develope. Today a company can begin obtaining protection even before they begin using a mark. Upon registration and sometimes upon filing an application the company can obtain priority, nationwide, to use a certain trademark. By knowing how to obtain, use and protect trademarks a company can secure its most valuable asset and gain a competitive advantage in the marketplace.

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    How can a registration help my company compete?

    Second, in a competitive business climate a company needs every advantage that it can obtain. This includes maximizing it use of the trademark laws to protect one of its most valuable assets, both offensively and defensively. A company, which obtained a federal registration of its trademark, has the right to go to a federal court with the enormous advantage of having the court presume that the company is right and that the accused infringer is wrong. The accused party has the burden of changing the court's presumption and to prove that company is wrong. Usually this is very difficult to do.

    Also a registered trademark may also be used to stop the importation of products at the border. The U.S. Customs Service can be required by the trademark owner to seize and detain any merchandise that bears, copies or simulates a registered trademark. A trademark owner simply needs to record its federal registration with the Customs Service and it will monitor and seize any goods bearing a counterfeit of a recorded mark or one which so resembles it as to be likely to cause the public to associate the importer's mark with the recorded mark.

    Another way that a trademark registration may be used a tool is to block any other party from obtaining a registration. If a company begins using a trademark but not obtain a federal registration , then another company can freely use the mark in its own market area. Worst yet that company can go ahead and file for a federal registration and then turn around block any attempt by the first company to obtain a federal registration. Furthermore, once the second company has a registered mark it can stop the first company's expansion of the use of its mark into new market areas.

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    Can trademarks be more important than patents?

    Trademark is often the only long term form of protection for a product. There are other forms of protection such patents rights or rights to the trade dress of a product. Both of these rights have their own limitations. Assuming that a product contains a patentable idea on which a patent is obtained, it will give its owner the right to prevent others from using the same concept in their products. This right, however, only lasts for a period of twenty years from the filing of an application. After that time the idea may be freely used by anyone. Unless a company is constantly developing new ideas and obtaining new patents for its products they will not have any protection. It frequently occurs that a perfectly good product will outlive its patent. Trademarks, however, can live forever. If the owner of a mark is diligent in using and protecting its trademarks, those marks will last as long as they being used. There is no time limitation on the rights to a certain trademark.

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    How can you lose a registered mark?

    Proper use of one's trademarks and service marks is extremely important, because improper use can result in the loss of rights. It must be remembered that a trademark, by indicating the source of the goods, must be used as an adjective modifying the generic name of the product (e.g. KODAK cameras, BUDWEISER beer); and the trademark should not be used as the name of the product itself (e.g. buy a kodak, or drink a budweiser). When a trademark is used, it should be written in some distinctive form to set it off from the other words; this can be done by capitalizing the first letter, capitalizing all the letters, or printing the trademark in different type.Further, it may be desirable, when using trademarks that may be somewhat descriptive or suggestive of the nature of the product to use a small "tm" immediately to the lower right of the trademark to indicate the fact that you are using the word as a trademark. However, if you have obtained a federal registration for the trademark then you may use the symbol ® adjacent to the mark, or the words "reg. in U.S. Patent and Trademark Office."
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