What happens if I Don’t Register My Trademark?

It is not necessary to have an officially recognized trademark for your company, legally speaking. Yes, you read that right! You do not need to have a registered trademark as long as you are complying with other legal requirements of operating your business, such as having the appropriate licenses, paying taxes, and adhering to consumer law, among others. You will not be compelled by the government to obtain a trademark either.

However, if you do not have a registered trademark, the legal position is that you do not have proper legal rights to your brand. You may not even own your name or your brand. If you don't register your trademark, you could miss out on a lot of protections that would otherwise be available to you. For example, if someone else uses your unregistered trademark without your permission, they may be liable for infringement under state law, but not federal law. And if you try to stop them from using your mark, it will be up to you to prove that it's yours - which can be tough and expensive.

A registered trademark is the only way to protect your name or brand securely. It is in your best interest to maintain as much control over your brand and assets as possible, which is only made possible by registering your brand. So while registering your trademark isn't required, it's definitely worth doing if you want the full scope of protection for your brand.

Only establishing a business name does not give you legal rights to your business. Without an official trademark registration, you are putting your business name (or URL or company name or brand name) at risk by not having it fully protected. You should also be aware that using the "TM" symbol in conjunction with your brand or name is not enough to provide protection against trademark infringement. The "TM" sign merely informs the world that you consider this a trademark; it does not necessarily make it so.

If you don't have a registered trademark, someone else who does may have more legal rights to your business name or brand. They could then use their trademark to make you change your business name or remove your website.

You'll immediately safeguard your brand in these ways when you register your name, trademark, logo, slogans, or other intellectual property:

• It affords you the right to use the trademark. Trademark registration gives the owner of that trademark the legal right to use it. If you don’t register your brands, logos and names as trademarks, there are no assurances that you have the right to use them to their full potential.
• You have the right to object to any similar marks if a competitor starts to use them. You don't want consumers to be confused by your company's name with those of others who are imitating or adopting it. It also gives you a solid defense if another entity alleges you infringed on a mark of theirs.
• By not protecting your business with a registered trademark, a competitor can start using a similar name to yours, dealing in goods & services within your industry, and you may have no power to stop them. If one of your competitors suddenly infiltrated the neighborhood and started using a business name too similar to yours, it would undoubtedly cause market confusion. Without a registered trademark, you have no power to stop them from trading in your area. With a registered trademark though, you're in a stronger position to defend your rights and prevent any issue with customers mistaking their business for yours.
• By choosing not to register your own trademark and making profits by the use of your business names and logos, you could be infringing on another business owner’s registered trademark that may be similar to any aspect of your business logo. This could have a detrimental effect on your entire business and lead to expensive legal battles that you will find yourself on the losing side of, because of the lack of legal protection as compared to the owner of the registered trademark. This could further result in having to change your business names and logos, which would mean the loss of time and money invested into building your brand, including signage, products, uniforms, an online presence, marketing and advertising - only to have to start all over again.

Disadvantages of not registering your trademark:

• Because you have no property rights, you have a vulnerability when it comes to investing in advertising for your business. Not being able to find suitable partners or investors to invest in your company can be a major blow to the company's growth.
• If your trademark is not registered, your brand's identity is exposed to theft. Anyone can file an application with the Trademark Registry to register your business. The person who registers the trademark then has the right to prevent others from using it or could take legal action to demand payment for use.
• Because your trademark has not been registered, it cannot be assigned, function as a guarantee, or be part of a franchise since there is no ownership to back it up. Not being able to expand to new markets under the same brand umbrella represents a huge business loss.
• In order to maintain clarity and avoid any potential confusion, it is essential that you prevent other brands from entering the market with a similar name or product. Your customers may believe they are purchasing your product or service when in reality, it is of poor quality and being offered at a lower price point. By avoiding this type of friction and protecting your brand identity, you can ensure longevity in sales and beat out any competitors founded on false pretenses.

Protecting your intellectual property against infringement from competitors should be a priority for any business owner. Although many small company owners may believe that they are not yet well-established in the market to justify the cost of trademark registration, this money spent will save them lots in the future. A trademark professional can advise you on the best way to register your trademark so that your application is successful and offers you the full protection you need. Be it a big business or small, look no further than Global Trademark Company for all your Trademark related needs!