How to make money from Trademark | Beginner's Guide

 

When we walk into a supermarket, we see several attractively placed racks in front of us. These racks are frequently loaded with a variety of branded products that fall into the same category. With so many possibilities, it might be overwhelming, but we eventually settle on branded products that we believe are reliable. Companies spend years gaining the trust of their customers. They devote a lot of time, effort, and money to establishing a brand value and building a consumer base. No firm wants a third party to profit from the brand value it has built after a significant investment. Every corporation in this situation would want to safeguard its brand and find methods for how to make money from Trademark. Let us look at strategies to monetize trademarks in this article.

 

How to Make Money with Your Trademark?

Because corporations spend a significant amount of time, money, and effort on trademark registration online, they would like to find ways to profit from it. 

In general, a trademark can be used by licencing or transfer.

A firm can either make things and supply services on its own or allow another organisation or entity to use its brand name for making goods or delivering services to exploit the registered trademark. 

A firm can also sell its trademark to another party if it is no longer using it.

 

Trademark Licensing

There are several forms of trademark licences, including:

• Distributor Arrangements - Products from one producer are sold to other customers and sellers under this form of agreement. For example, Hindustan Unilever makes distributor arrangements in order to maximise earnings and sell more products.
• Franchise Arrangements - In this type of agreement, the trademark owner allows the franchisee to use the trademark. Apart from trademarks, business techniques are also licenced in this form of agreement in order to sustain the service supplied. McDonald's, for example, is entering into franchise agreements all around the world.
• Merchandise Arrangements - In this case, the trademark owner can allow another party to manufacture goods under his or her brand. For example, Marvel has granted Hamley a merchandising licence to produce toys based on its superheroes.

 

Trademark Assignment

An assignment can be one of two sorts, according to the Trademark Act:

• Assignment with business goodwill - In this sort of arrangement, the assignment not only transmits ownership of the mark but also the right to use it in relation to the items in the class or category in which the mark was first used. The assignor will have no right to use the mark in relation to the products after the assignment agreement signs. In most cases, assignment with goodwill occurs when the entire business sells out.
• Assignment without business goodwill - When a business owner assigns a trademark without goodwill, the new owner is unable to use the mark for the same things that the original owner did. If Nestle assigns 'Maggie' to Tata without goodwill, Tata can use 'Maggie' for anything other than the TM registration's description of goods.

 

What can be trademarked?

A trademark is a sort of intellectual property that plays an important function in giving a product or service a distinct identity and adding value to it. Any symbol, word, phrase, sign, design, expression, or even a colour combination can be trademarked in India. 

It is, nevertheless, critical that such a trademark has a distinct identity that distinguishes the product or service from others.

In a broad sense, a trademark is a feature that distinguishes the products or services that a person or company owns, manufactures, or designs from those of others in a commercial situation. 

It is usually advisable to register a Trademark to legally protect this unique identification in a commercial context.

 

What items are not eligible for trademark registration?

Section 9 of the Trademark Act 1999 establishes unequivocal reasons for trademark registration denial. The following is a list of reasons why a trademark cannot be registered.

• There is no distinguishing feature of the goods or services.
• A trademark that identifies the type, quality, amount, intended use, values, geographical origin, or time of manufacture of goods or provision of services, among other things.
• Any markings or signals that are commonplace in the industry.
• A mark that has the potential to confuse and deceive the people.
• Mark that may offend people's religious feelings in the country
• A mark with scandalous or filthy content
• The Emblems and Names (Prevention of Improper Use) Act of 1950 prohibits the use of certain words or marks (12 of 1950).
• If it comprises solely of the shape of products that results from the nature of the goods; the shape of goods that requires to achieve a technical outcome; or the shape that offers the goods significant value.

 

The Importance of Trademark Registration

If something isn't legally protected, it can be fully exploited. 

 

Trademark registration is the barrier that keeps unauthorised users at bay and prevents others from using the same.

 

After the trademark registration process completes, the person who registers it becomes the owner of that trademark. 

 

Trademark registration is essential for protecting intangible property and preventing third-party misuse.

 

• For providing the product and services with a distinct personality and set them out from the competition.
• To identify the product or service's brand and owner
• To offer the organisation a distinct character by providing brand value
• Allowing business associations to exist
• In the event of infringement, trademark registration gives you the legal authority to sue the infringer.
• A trademark registration grants an entity various rights, including the ability to use, distribute, and assign a mark.

 

Conclusion

Trademark registration online is not only a legal safeguard for your brand, but it can also be a source of revenue if managed correctly. 

In other words, trademark registration isn't just a tool for entrepreneurs to protect their hard work from another company, it's also a chance to make money from Trademark

Some brands are worth billions of dollars. The trademark value of Google is 44.3 billion dollars. Microsoft's value is at 42.8 billion dollars.

The concept of trademark registration and monetization is still evolving. 

Whereas, a little brain-racking and hustle, in the beginning, can help you earn a substantial sum later on.