If sometimes you have asked yourself: Why is a Trademark necessary for my business? Firstly, you need to know that a trademark is an intangible asset. Nowadays, some market actors with this asset are more competitive than others since intangible assets depict powerful financial tools for business success.
At IP Consultores, we understand that Market Economy is one of the main engines of economic development, and competitiveness is the best Market incentive. In a well-developed marketplace, people can offer their products and services to consumers in the best conditions. When consumers have different options for choosing in the market, they yield an economic incentive for sellers to enhance their products and services to be competitive.
Next, we present five reasons why your trademark is fundamental for your commercial success.
- Consolidation of Intangible Assets
Regarding WIPO World IP Indicators Report 2022, 13,9 million trademark applications were filed worldwide in 2021, which meant an increase of 4% compared to the whole applications of 2020. Understanding this global trend allows glimpsing the relevance of trademarks as intangible assets in recent years. If some years ago, having material assets, such as factories or stores, was a sign of financial success for undertakings, nowadays, trends have changed, and intangible assets are more relevant than material.
- Market competitiveness
Competitiveness has always been a factor in business success since it depicts an equation: more products and services mean more economic advantages for consumers. Although there is no magical receipt for guaranteeing business competitiveness, some factors allow increasing the possibilities of commercial success. Placing a trademark is decisive for competitiveness because the choice of goods or services will be on the brand´s recognition by consumers.
- Product or service identity
The main goal of a Trademark is to identify the origin of products or services with certain undertakings. Furthermore, another relevant purpose of a Trademark is to yield a relationship among goods or services with an idea of quality. When goods or services have some features related to a certain quality, it will be decisive in the consumer´s election.
- Effective marketing
The lawful use of a brand is the main advantage of Trademark registration. A registered Trademark can increase sales since the marketing strategy will be more potent if is backed with awesome branding ideas. Likewise, obtaining a trademark registered is a legal strategy for avoiding unlawful uses by third parties.
- Investment attract
Business growth depends on investment. If an undertaking intends to attract more investors, it should grant sufficient guarantees regarding its profitability. A registered Trademark becomes a legal guarantee of a business because, in an infringement case, the brand´s owner has the action to sue the offender. In legal terms, the investors have legal guarantees for securing their investment.
At IP Consultores, we know that successful businesses contribute to enhancing economic development. For this reason, we are committed to helping entrepreneurs to increase their IP portfolios through the best registration practices in Mexico. As we have already explained why a trademark is necessary for your business, now, you should read our post Keys for Trademark design before starting your registration process.
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