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Kandarp Vanita
| Updated: 14 Apr, 2021 | Category: Trademark

Trademark for MSME: Registration Process

Trademark Registration for MSME

Trademark Registration is the process of registering a company name brand name, device, logo or symbol and has its own benefits of acquiring exclusive legal right to the user’s trademark with the purpose of providing better protection to the business. As a result, it is the first step towards establishing the company’s own brand name. A trademark helps the companies in establishing their brand identity and prevents any kind of unlawful infringement. It is important for the micro, small and medium enterprises to protect their trademark; therefore, to encourage start-ups and small enterprises the fees for trademark registration for MSMEs has been considerably reduced. Here’s a look at the importance of Trademark for MSME and its registration process.

What is MSME Registration?

The MSME became functioning on October 02, 2006. MSME enterprises are the backbone of the economy in a developing country like India. The purpose behind establishing MSME was to facilitate, promote and expand the competitiveness of the micro, small and medium enterprises.

Currently, the government revised the MSME classification under the Aatmanirbhar Bharat Abhiyan[1] (ABA) by adding combined criteria for both investment and annual turnover. Also, under the MSME definition the difference between the manufacturing and the services sectors has now been removed. The reason behind the removal was to create uniformity between these sectors. The revised MSME classification where the annual turnover and investment both are to be considered for deciding an MSM is given below.

Revised MSME Classification

Criteria

Micro

Small

Medium

Investment & Annual Turnover

< Rs.1 crore & < Rs.5 crore

< Rs.10 crore & < Rs.50 crore

< Rs.50 crore & < Rs.250 crore

MSME registration is done in the official government portal of udyam registration. Under the following two categories, the registration of MSMEs can be done in the portal –

  • For the new entrepreneurs who are still not registered as MSME and
  • For those entrepreneurs having registration as EM-II or UAM and through Assisted filing for those having registration as EM-II or UAM.

Read our article:Importance of Trademark Underlining Company and Design Registration: An overview

Advantages & Benefits of Registering Trademark for MSMEs

There are many advantages of registering trademark for MSME and few of them are given below:-

Advantages & Benefits of Registering Trademark for MSMEs

Legal Protection

Registering your trademark for MSME can make you the legal owner of the registered trademark and then no other person can have the right to use the registered trademark without your prior permission.

It gives legal protection to the trademark and so if the trademark for MSME is not registered with the government then no action can be taken against a 2nd party even if the trademark is misused or violated. The owner of the registered trademark for MSME can take legal action against anyone who will copy the trademark without any prior permission.

Unique Identity

One of the best characters of registering trademark for MSME registration is that it helps in establishing a unique identity of the company. Hence, the uniqueness prohibits the other competitor companies in the market to apply or use the trademark for the similar kinds of goods or services.

Creation of Asset

Registered trademark for MSME acts as an asset for the owner as it is only the owner who has the authority to easily sell the trademark, franchise or permit it on the contract basis to any other party. Trademark registration creates a kind of intellectual property for the same.

Trust or Goodwill

Trademark registration for MSME gives it a brand name. As registration of the trademark gives the product its uniqueness and novelty, it can effortlessly create goodwill, sense of trust, and ensure good quality in the minds of your consumer.

Popularize the Brand

The registered trademark for MSME will be easily searchable on the available websites of government trademark database. It can help the owner to get popularity amongst people and also in the market which can attract more consumers and shall be advantageous for the company.

Things to Know About Trademark Registration for MSMEs

  • It is important to understand while applying for trademark registration as MSME and to know which class to apply under. As, according to the NICE Classification System, there are total 45 different classes, out of which the first 34 are for the product category and the rest for services.
  • MSME owners must contact with the legal experts to make sure that the registration for trademark is applied in the right manner. Since the application requires understanding, effort and time, it is essential that all the things are right in the first attempt to avoid unnecessary delays.
  • It is advised that the owner should consider for application of trademark registration early and not delay in applying in their entrepreneurial journey as it is a time taking process and can take up to 18 months.
  • Trademarks are territorial in nature, and MSME being under the Government authority so a trademark obtained in India will only be valid within India, and not in abroad.
  • The validity of the registered trademark is for 10 years from the date of filing of them application for trademark registration. The applicants must make sure that they are renewing their trademark within this time period to continue enjoying the availed legal protection.
  • After applying for the registration of trademark, the person can use the ™ symbol beside the mark as it will work as an indication that the goods or services has the trademark protection. And after the approval of the application and on receiving the Trademark registration certificate, the applicant can start using the R symbol next to the mark.
  •  When there is any unauthorized use of the trademark by any legal entity or external person then it is termed as trademark infringement. As per the Trademark Act, 1999, this is punishable by law if the applicant has a registered trademark in India.

Documents Required for Trademark Registration of MSMEs

  • Address proof, ID proof and contact details of the applicant
  • Certificate of incorporation or partnership deed
  • The address proof of the company
  • Copy of the trademark or logo
  • Details about the business
  • Udyog registration certificate

Conclusion

The MSME trademark registration is a cost-effective and simple process that may be done online. Hence, applying for registration in trademark for MSME is a fundamental step for all companies.

It gives exclusive ownerships rights over the symbol or brand name of the company which works as an effective market strategy. Therefore, it is very important for the business owners to properly consider and comply with the guidelines to get their trademark protected.

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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