SMEs and start-ups: 3 reasons to register your trademark
Without a name, a company is nothing. Whatever the size or type of company, it needs a name to make itself known. This name will be linked to the life of the company: its reputation, its size... It is therefore essential to take the time to choose a name, and above all to protect it. Registering a trademark should therefore be a priority for new business creators. And managers of SMEs, VSEs and start-ups should be all the more careful to protect their intellectual property rights, as they are a prime target for counterfeiters.
1. Registering your trademark: a top priority for SMEs
When setting up a business, the budget is often tight. Of all the costs involved, entrepreneurs are reluctant to invest in brand protection. They prefer to start using the name, which they will register after a few months or even a few years.
This method is risky. Indeed, it happens quite frequently that an SME or start-up is accused of counterfeiting, for using a name too close to that of another company. In such cases, the use of the name will have to be stopped and all investments already made will be lost. Then it will be necessary to choose a new name, reserve domain names under that name, etc. This will strongly impact the growth of the company.
Therefore, even before using the name, it is necessary to ensure that it is available. The safest solution is to perform a similarity search on the name. If no embarrassing anteriority emerges, the company can register the trademark.
2. Having a registered trademark to position oneself on the market
Trademark registration is particularly interesting for innovative SMEs and start-ups. Indeed, these companies that offer new products and/or services will be led to communicate all the more on their name to make themselves known. Innovative products and services are quickly assimilated into the company's name.
It is also essential to register your trademark when selling a high quality product in a fairly homogeneous market. For example, the Breizh Cola brand became known by offering quality French soft drinks, even though competition in this area was strong.
Finally, if your company wishes to expand abroad, it is also recommended to protected by a European and/or international trademark application. Indeed, it happens that third parties ("trademark trolls") spot the trademarks in full development in a given country, and arrange to appropriate the name abroad.
3. Beware of counterfeiting: SMEs are concerned
Large companies are not the only victims of counterfeiting. It is estimated that 8 out of 10 businesses will be victims of counterfeiting in 2018. Figures are on the rise. This trend is particularly pronounced among companies that sell online, including Amazon sellers.
Counterfeiting is extremely damaging to businesses: damage to the reputation of the brand, loss of customer confidence, drop in sales... Many businesses have had to change their name after a counterfeit, to get rid of this negative image.
It is therefore essential to protect one's trademark, once it has been registered. A defence strategy must be put in place. This necessarily involves brand surveillancebut also by taking action (formal notices, opposition procedures, etc.). Trademarks are part of your company's assets: they must be valued and defended.
Our team is at your disposal to file and monitor your trademarks, and to advise you on the best intellectual property strategy to implement. In addition, SMEs, start-ups and ETIs can benefit from support (sometimes financial) from the INPI in the protection of their industrial property rights.and in particular in the case of an international trademark application. Do not hesitate to contact us for more information.