Trademark

Trademark — what it is and why it matters

A trademark is a distinctive sign — such as a word, name, logo, symbol, slogan, or design — that identifies the source of goods or services and distinguishes them from others in the marketplace. Trademarks are a form of intellectual property and help consumers associate products or services with a particular company or quality.

Key takeaways
* Trademarks identify the source of goods or services and protect brand identity.
* Registered trademarks use the ® symbol; unregistered marks often use ™ and may receive common-law protection.
* Trademarks can last indefinitely so long as they are used and properly maintained.

Trademark protections and registration

What trademarks do
* Prevent others from using confusingly similar marks for related goods or services.
* Allow owners to enforce rights through cease-and-desist letters, negotiations, and litigation when necessary.

Registration
* In the United States, trademarks are registered with the United States Patent and Trademark Office (USPTO). Registered marks use the ® symbol.
* Unregistered marks may be marked with ™ (or ℠ for service marks) and can receive protection under common law, though rights tend to be narrower and regionally limited.

Maintenance and continuous use
* Trademark rights depend on continuous, bona fide use in commerce. Owners must actively manufacture, market, or sell products or provide services under the mark.
* Registered trademarks require periodic maintenance filings (for example, a Section 8 declaration every five years in the U.S.). Failure to maintain use or file required documents can lead to loss of registration.

Note on service marks
* A service mark identifies the source of a service rather than a physical product. The term “trademark” is often used broadly to cover both.

Valuing and exploiting trademarks

Trademarks are intangible assets that can be bought, sold, licensed, or used to generate revenue.

Common commercial uses
* Licensing: Owners can license marks to third parties (e.g., LEGO licensing movie franchises like Star Wars or DC Comics).
* Merchandising and brand extensions: Well-known marks can create significant value when used across product lines.

Famous examples
* Kleenex (Kimberly‑Clark) — the brand became synonymous with tissues.
* BAND‑AID (Johnson & Johnson) — the trademarked name became a common term for adhesive bandages.

Methods for valuation
According to trademark valuation practice, common approaches include:
* Income approach — estimate future profits or discounted cash flows attributable to the mark.
* Market (comparables) approach — compare to the sale/licensing of similar marks.
* Cost/replacement approach — estimate cost to recreate or replace the trademark.
* Relief-from-royalty approach — estimate royalties saved by owning the mark rather than licensing it.

How trademarks differ from patents and copyrights

• Trademark — protects brand identifiers (names, logos, slogans); protection can last indefinitely with proper use and maintenance.
• Patent — protects inventions, processes, and designs; requires disclosure and grants a time-limited monopoly (typically 20 years) after which others may use the invention.
• Copyright — protects original creative works (books, music, software, films); grants exclusive reproduction and distribution rights for a defined period.

Each type of intellectual property covers different assets and uses different registration systems and enforcement mechanisms.

Intellectual property context

• Trademarks are classified as intangible assets — valuable yet lacking physical form.
• Intellectual property rights are national and international frameworks designed to protect creations of the mind; specifics (duration, registration requirements, enforcement) vary by jurisdiction.

Bottom line

Trademarks are powerful business assets that communicate origin and quality to consumers. When registered and actively used, they provide long-term legal protection and commercial opportunities such as licensing and brand extension. Proper use, monitoring, and maintenance are essential to preserve trademark value and enforceability.