Melissa D. Goolsarran Ramnauth, Esq. | Fort Lauderdale Trademark Attorney
Yes. Having a trademark can save you money.
A trademark is an often overlooked aspect of a business. However, trademarks for your business are just as important as forming an LLC or entity, and having contracts.
A trademark is something that identifies your business as the source of a product or service. A trademark can be a name, logo, slogan, or design.
To read more about the definition of a trademark, you can read our other article by clicking this link: https://www.mdgrlaw.com/post/what-does-trademark-mean.
How can having a trademark save you money?
Trademarks are important because they can prevent someone else from copying you. Conducting a trademark search can also check to see if you are unintentionally copying someone else.
Trademarks can save you money.
One way that trademarks can save you money is that it grants you access to federal courts. A federal trademark registration allows you to sue an infringer in federal court as opposed to state court. Federal courts are more efficient and faster. This means that you will spend less money having an attorney litigate your case for a long time.
Another way that trademarks can save you money is that it can reduce your risk of getting sued. For example, if you come up with a company name, you should hire an attorney to conduct a trademark clearance search to make sure that the name is not already taken. If the name is already taken, you can be sued for infringement. You could be forced to create a new name, website, products, and marketing material with a new name if you lose. This could cost thousands of dollars and loss of customers.
How did Clubhouse lose money by failing to have a trademark?
Alpha Exploration Co. launched the app and it became popular in the fall/winter of 2020.
However, SBS Consulting Group received its trademark registration in December of 2019 for "The Clubhouse" and created an app.
SBS sued Alpha for both monetary damages, and an injunction to stop Alpha from using the Clubhouse name.
This shows that businesses and owners need to conduct trademark clearance searches, and apply for federal trademark registration, ideally at the beginning of the business.
A business can expand quickly and unexpectedly. Don't be caught in an unfortunate position like Clubhouse. Alpha skipped a $1,500 trademark process and now their $4 billion company is jeopardized.
Furthermore, a trademark is a beneficial valuation tool for investors determine the worth of companies.
An experienced attorney can conduct a clearance search to make sure that you are not at risk of being sued for using a name that someone else used first. At MDGR LAW, we send you a summary report within 1 week. After that, we prepare and file the trademark application with the United States Patent & Trademark Office within another week. The USPTO takes about 1 year to issue the registration. Then you can use the US Registration to get trademark rights in other countries pursuant to the Madrid Protocol.
If you’re just starting your business, or have been running your business for some time, we would be glad to assist you with trademarks.
Melissa D. Goolsarran Ramnauth, Esq.
MDGR LAW
Trial-Winning Trademark & Business Law Firm
(754) 800-4481
melissa@mdgrlaw.com
To read more about Clubhouse's Trademark Issues, read our prior article: https://www.mdgrlaw.com/post/did-clubhouse-a-4-billion-company-forget-to-apply-for-a-trademark