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Kandarp Vanita
| Updated: 25 Feb, 2021 | Category: Trademark

Importance of Trademark Underlining Company and Design Registration: An overview

Trademark Underlining Company and Design Registration

A Trademark is an Intellectual Property Right consisting of recognisable signs, designs and expression which identifies any particular service or product of a business. The protection is given to that certain name, symbol or words that will be used in relation for a good or service.

The major importance of trademark is to permit individuals and companies to designate the foundation of their own goods or services and to make a distinction from the other goods and services in the business.

Section 2(d) of the Designs Act, 2001 defines design as the features of a shape, pattern, configuration, composition or ornamentation of lines or colors applied to articles. Therefore, the importance of trademark underlining company and design registration is a broader area serving various advantages to the Company.

Importance of Trademark Underlining Company

 Trademark is another word for a brand or brand name. Theoretically, if a particular mark is connected with a particular service then it is called a “service mark” but importance of trademark is usually referred to both the marks linked with services and goods.  It gives recognition to the company and constantly affects the purchasing decisions of the consumers. The main importance of Trademark registration is to give protection to the company’s name, symbol, slogan, or any device that makes the company identity different in the market and differentiate the company’s business or product from others in the industry.

So, if once any company has registered its trademark and then if someone else makes any effort to use the similar mark so as cause deception in the market and confuse customers, then the company as the right to legally protect its own mark.

Company is a separate legal entity and can be registered under the Companies Act, 2013. The registration of company ensures the business, ownership and other transactions. Importance of trademark underlining company includes:-

Importance of Trademark Underlining Company

Trademark Makes it Easy for Consumers to Find the Company

The importance of trademark is that it distinguishes the product and services from that of the competitor and let the consumer decide the quality and authenticity of the particular company. As because trademark gives goodwill to the company, it is one of the reason consumers get attracted because they feel the product and services to be reliable.

Read our article:How to Protect Android Applications with the Help of Trademark Registration?

Trademark Prevents the Market Confusion

The major importance of Trademark is that it gives the consumer the convenience to identify the company’s logo, slogan, design, or other origin which allows the consumers to decide the product or service they would particularly wish to purchase or to keep away from purchasing. The consumer feels the need to have knowledge and information about the particular brand and then they stick to that brand.

Trademarks are Very Economical & Efficient Communication Tool

A trademark has so many benefits in a single brand name or logo. The importance of trademark is that it gives the impression about the company’s strategic and emotional side, the company’s reputation, the company’s products and services, how the company considers the Consumers lifestyle, choices, and desires.

The advantage and importance of trademark can work efficiently across boundaries even with different cultures and languages. Examples like McDonalds[1], Reebok, and etc logo.

Importance of trademark as a Long Term Asset for The Company

When the product of the company is recognised in the market, it gains a long term competitive advantages in the market. The consumers rely and choose that company.

Importance of Trademark underlining Design Registration

The registration of design under the Designs Act, 2000 gives exclusive right to the feature, shapes of the product and the patterns used on the product, the configuration, or composition of colours and lines when they are applied to any product or article in two- dimensional or in three-dimensional forms which is visible to the human eye.

For the registration of the design, it must be a new and original design and that it must not be published previously and also must fulfil other essential criterion particularly laid down in the Designs Act, 2000. Furthermore, the Designs Act, 2000 excludes these from the definition of a design: a) Anything which is a trademark; and b) That which is a mechanical device.

  • A particular product’s shape may be registered as a trademark and as well as a design.
  • The registration under both the trademark and design can be done as per the requirement and reasons which should abide by the principles of law evolved since years and from a vigilant study of the two statutes.
  • Two dimensional aspects – as because a design evidently excludes a trademark from its scope, but the Trade Marks Act, 1999 does not exclude a design under it as the shape of the product is always three dimensional
  • Three-dimensional aspects– In the 3D area things become a bit difficult and the lines between a trademark and design begins to fade. As because a three-dimensional shape can be protected under both the Acts, there are few issues which an owner has to deal with so as to decide whether to register under design or trademark.

The importance of trademark underlining design in India is that the two of them function without any interruption. This is mainly because of the kinds of pattern of the product, its lines or the colour composed which has been used as a trademark cannot be registered as a design by reason of the legal bar in Section 2(d) of the Designs Act, 2000.

Conclusion

Therefore, it is significant to know the importance of trademark in company and design registration. It is essential for company to get registered for its legal functioning so as to register the brand name, logo, symbol, slogan of the company under trademark. The importance of trademark is that it gives protection & can bring more customers to the company and increases the goodwill of the company.

At the same time, it is to be remembered that design excludes trademark but trademark does not exclude a design. Therefore, if one claim designs and trademark rights on the same feature of the product, then the design right may get extinguished. Thus, because of this constant stir it is important for the right holders to be cautious while registering and enforcing their rights under such an overlap area of trademark and design.

Read our article:10 Invaluable Advantages of Trademark Registration

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Kandarp Vanita

Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents & dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.

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