Trademark and Brand Value

Trademarks are the form of intellectual property that differentiates one company identity from another in the marketplace. A well established brand engenders customer awareness, loyalty, association and perceived quality. In the present market of endless “similar” products and services, company trademarks and brands are soon becoming the most valuable assets a company owns.

For any product or service to succeed in the marketplace and demand the price it deserves, it must have something that distinguishes it from the drove of other similar products. Take, for example, soda pop. Despite the hundreds of brands of soda pop on the market, all selling pretty much the same varieties, Coca-Cola and Pepsi own more than 90% of the world market. It is not because their products are so much better than everyone else’s or because they have patents (or even the rumored secret recipe) protecting them – it is because of the public perception of, loyalty to and association with the products embodied in their trademarks.

Particularly for products that do not yet have or are not eligible for patent protection, establishing trademark rights as a differentiator is crucial. Imagine a company that has an incredibly innovative product never before seen in the marketplace. The company launches its product and sales go through the roof. If the company does not have something in its arsenal to maintain that wave of success, competitors will quickly come in and drive the price of the product down and take away market share. The time and effort spent innovating the new product would be lost. Many companies take the approach of constantly coming up with new innovations and products which can be a successful, if not expensive, approach.

If the company took the time to establish a solid trademark and brand for their product, and even possibly reinforced the innovation with “Patent Pending,” competition will not only be much less likely to try to compete, but those who do compete will need to fight the reputation of quality and innovation that accompanies the one who was first to the market. If the company then chose to continuously innovate and come up with new products, added value would be received as the market associated the company, and its brand, with leadership and innovation. Having an established brand and enforceable trademarks keeps the customers, recognition, associations and loyalty with the brand. If the patents were also in place, the competition would not even be able to lag behind the company. It would be forced to use old technology or innovate itself.

Careful selection of a trademark and constant monitoring of the competition to ensure the trademarks are not being used by anyone else helps to protect the value built in your trademark and minimizes the potential for a law suit.