12 good reasons for fashion retailers to register a trademark

There is a myriad of reasons why trademark registration is of a crucial importance for fashion retailers. This article presents a concise summary of 12 key reasons why every creator of fashion trends should think about registering for a trademark.


Igor Demcak

1. Protect the most important asset

For virtually any business, a brand communicates the product proposition, quality, price, trust and customer service, allowing you to distinguish from competitors, both domestic and foreign. In our survey of 10,000 consumers, we have asked the respondents about the extent to which a brand influences their purchase behaviour. The results reveal that the perceived importance of brand exceeds 28%, revealing that brand truly plays a key role in shaping consumer decision making process. As a result, brand can be viewed as one of the most important assets, deserving adequate level of protection in the form of a trademark registration.

2. Networking and partnerships

Trademark registration instils a level of trust and certainty on all partners. Both supply chain and upstream business partners value brands with registered brands as this action limits the risk of complications in the future.

3. Impress investors

Analysis carried out by The Economist reveals that over 20% of the market value of the 10 most valuable brands is derived from the brands themselves [1]. Estimates provided by Millward Brown, a market-research company, go even further, suggesting that brand alone is responsible for more than 30% of the market value of companies [2]. Whether you are the sole owner or you have a board of investors to answer to, brand protection in the form of a trademark registration certainly provides positive monetary value.

4. Deterrent for copycats

Infringement cases are more common than you may think, with over 85% of large companies having experienced a case of infringement in the last year [3]. The very act of registering a trademark acts as a deterrent for copycats, with the ® symbol clearly communicating the level of protection for your brand. Furthermore, by registering the trademark you retain the sole right to issue “cease and desist” letters that effectively discourage any copycat attempts.

5. Quicker and cheaper resolution of disputes

Even in cases when it comes down to an infringement lawsuit, a registered trademark provides you with a level of protection that allows for a quicker and cheaper resolution of disputes. This means that by the end of the day, the initial investment into a trademark will allow you to save a considerable amount of effort, concerns and lawyer fees.

6. Cybersquatting, hosting and social media

Cybersquatters deliberately purchase hosting domains with the intent of re-selling them with a significant increase in price. This threat could impede your move to a branded domain. Additional threats in the cyberspace include the use of copycat domains with only minor alterations to your brand name and the same practice can be also found in the realm of social media. Good news is that trademark registration allows you to exercise your right for the sole use of the mark, effectively discouraging any such practices and gaining control of your online presence.

7. Avoid rebranding

In case a trademark is registered by your competitor, you may receive a “cease and desist” letter or face infringement lawsuits. Without a registered trademark for the brand, the only viable option may be to rebrand your business, forcing you to start virtually from scratch once again. In addition to the loss of positive recognition of the brand, rebranding also incurs costly changes to all promotional materials. The effort and cost associated with rebranding therefore represent further reasons why it is never too early to start protecting the uniqueness of your brand by registering a trademark.

8. Win talent wars

Up to 65% of the employment preferences and career choices made by talented applicants are made based on the company’s brand [4]. The protection of its uniqueness, value and personality can be therefore directly related to winning the increasingly competitive recruitment wars.

9. Foster growth potential

Trademark registration opens up the doors for fostering growth potential. Franchising is a particularly popular option, allowing for a quick global expansion by collecting royalties for the relevant know-how and the use of the brand. Trademark registration is absolutely vital in this process, enhancing the level of franchisees’ confidence as well as increasing the value for your company.

10. Over 30,000 new trademark registrations per day

For year 2019, the World Intellectual Property Office has reported a total of 11,514,100 applications for trademarks. This means that on a global scale, there are 31,545 trademark applications filed each day [5]. The pace of trademark registrations has increased over the recent years, emphasising the importance of brand protection. At the same time, the growing number of trademark registrations indicates that it is never too early to start protecting the uniqueness of your brand.

11. Inexpensive and easy to register

The cost of trademark registration varies between individual jurisdictions but in general terms, the cost is negligible compared to the loss of brand reputation, lost sales, rebranding costs and infringement lawsuits. Thanks to Trama, the registration process is very easy and starts with a free verification within 24 hours. The dedicated expert support provided by our team of attorneys ensures that the whole experience for you is convenient, quick and stress free.

12. Trademarks offer protection for life

Typically, a trademark registration provides protection for the period of 10 years, after which it needs to be renewed. The existence of an expiring trademark however provides you with the right to extend this period, effectively providing protection for life!

[1] The Economist (2020), “It has never been easier to launch a new brand”, available from: https://www.economist.com/business/2020/01/23/it-has-never-been-easier-to-launch-a-new-brand

[2] The Economist (2014), “What are brands for?”, available from: https://www.economist.com/business/2014/08/30/what-are-brands-for

[3] CompuMark Research (2020), “Trademark infringement rising year-on-year, says CompuMark report”, available from: https://www.prnewswire.com/news-releases/trademark-infringement-rising-year-on-year-says-compumark-report-300986014.html

[4] Zhang, J.-Y., Wang, Y. and Feng, L.-M. (2013), “Evaluation model and application of employer brand: Brand association added and revision of comprehensive evaluation model”, Journal of Beijing Technology and Business University, November

[5] WIPO (2020), “IP statistics data center”, available from: https://www3.wipo.int/ipstats/

Igor Demcak
Igor Demcak

Trademark Attorney

Founder of Trama

7 year experience in IP protection

Gain more insights about the importance of brand in your industry through our selection of indicators and case studies.

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