Importance of Trademark Registration on World Intellectual Property Day
On this World Intellectual Property Day, it’s crucial to understand that registering your brand isn’t a luxury, but an essential safeguard for your business. Neglecting to trademark your brand can expose your company to legal risks, reputational damage, or even closure due to unsecured business names.
Potential Consequences of Not Trademarking Your Brand
- Imagine having a thriving business with loyal customers, only to face a lawsuit from another company claiming ownership of your brand name. Failing to trademark your brand can lead to consequences ranging from losing your company’s name and reputation to product confiscation or business closure.
- Without proper trademark registration, another party could claim ownership of your business name, forcing you to completely change it. This can easily destroy your established brand recognition and customer loyalty.
- Your products could be seized through procedures conducted by the Mexican Institute of Industrial Property (IMPI) for trademark infringement and seizure of goods.
Verifying Trademark Availability
Eduardo Kleinberg, a specialist at Basham, Ringe & Correa, emphasizes that entrepreneurs often focus on their business, products, and acquiring customers while overlooking the importance of checking if their chosen brand name is available for registration.
He states, “Small businesses and entrepreneurs bring immense energy, enthusiasm, and great products, but they often forget that one of the initial steps when starting a business is registering their brand name.”
Trademark Registration Process and Restrictions
Not registering your brand from the start can lead to complications. If someone else has already registered your desired business name, you may face litigation to contest it. This often forces entrepreneurs to completely change their brand, which can easily destroy established recognition and customer loyalty.
Moreover, your products could be seized through procedures conducted by the IMPI for trademark infringement and seizure of goods.
Checking Trademark Availability
Kleinberg advises registering your brand as soon as you start your business, not waiting until it’s consolidated. Begin by checking if the brand name is available through the IMPI’s External Consultation Service, Marcanet, which is free to use.
Keep in mind that a search doesn’t always guarantee 100% availability. You might need to navigate some hurdles during the registration process, as there could be similar but non-confusing marks already registered.
Additionally, ensure you search for your brand according to the product or service class, as a name might be in use but not within your designated class.
What Can and Cannot Be Trademarked
There are restrictions, such as famous brand names that cover all classes (e.g., Coca-Cola) and descriptive marks for products or services you intend to commercialize. For instance, if you want to name your soccer ball brand “Ballon,” it’s a descriptive term and thus not registrable.
Literal translations of registered marks in other countries, common words in another language, and overly grandiose or offensive terms also cannot be trademarked.
How to Register a Trademark
Once you have your brand name, initiate the registration process with the IMPI. The cost is 2,457 pesos per class plus VAT, covering the application review and registration title issuance or denial.
The registration lasts for 10 years, renewable in equal periods. The IMPI publishes the application within 10 days for third parties to oppose it, allowing registered trademark owners to initiate opposition proceedings if they believe the new mark infringes on their rights.
The IMPI then informs the applicant within three to four months if their mark is registrable, issuing a registration title or explaining why it’s not appropriate.
If there’s opposition, the process can take one to two years until the dispute is resolved.
Choosing the Right Brand Name
Kleinberg advises entrepreneurs to choose brand names that resonate with consumers and the product or service. “Successful brands connect with consumers, making them feel part of the brand,” he says. “Entrepreneurs must remember that if they want customers to eagerly acquire and use their products, the brand needs to be highly appealing.”
