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Trade marks
A trade mark is a sign used to distinguish a
particular trader’s goods or services from those of other traders. As any
marketing person will tell you, the selection of an appropriate trade mark
can be pivotal to the success of any business venture. As a trade mark is
used commercially, it attracts goodwill and builds a reputation and its
intrinsic value increases. The power of a good brand in the market place is
readily apparent if you consider any one of the well-known trade marks and
the significant sales and price premiums that are associated with the goods
or services sold under that trade mark.
Trade marks can be words, logos, signatures, or
letter and/or numeral combinations. Additional forms of trade marks include
aspects of packaging, shapes of products, along with more recent and radical
forms of trade marks such as scents, colours and sounds.
Due to the strong sales
and price premiums that a well known trade mark can generate, traders are often sorely tempted to use similar or identical trade marks to
those used by their competitors. In such a situation, it may be possible to
take legal action to stop such misappropriation through the law of passing
off. However, this type of legal action entails a significant evidentiary
burden and hence the preferable route for protecting trade mark rights is to
seek a trade mark registration. Once granted, a trade mark registration
prevents others from using a substantially identical or deceptively similar
trade mark in relation to the goods and services for which the trade mark is
registered. Legal action for trade mark infringement does not require the
trade mark owner to prove that they have established a reputation in the
trade mark, or to prove that any customers have been confused.
Unlike patents, there is
no limit to the length of time for which a trade mark registration can be
renewed. This means that this type of business asset can theoretically
continue to appreciate indefinitely.
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