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Risks of Not Having a Trademark Registration:

 
You can create rights in a mark by using it in commerce. However, these common law rights have limitations. The rights in a common law mark are limited to the geographical area where the mark has been used.

In addition, if a trademark is not filed and registered, then someone else may register a similar mark in the meantime, making it hard or impossible for the original user to receive registration in the future. A user who does not have a registered trademark is limited to using the mark only within its geographical area.

Registering a trademark at the outset of launching a mark name or design is the prudent thing to do. You can securely begin to invest resources in building a brand nationwide without the fear that someone else can steal a similar mark.

Case Study Risk Assessment involving two stores using the same name.

 

Benefits of U.S. Trademark Registration:

 
A Trademark benefits both businesses and consumers. As a business, a trademark protects your mark name in today's confusing and tough market conditions. A trademark not only protects you from having someone using your name, but most importantly a trademark also prevents anyone from having a similar name within the same industry. As a result, a trademark allows you to create a clear identity and reputation of your product and/or services with customers. You can grow or expand with confidence knowing that the mark you do business with is protected in the entire United States.

Trademarks also allow consumers to be better buyers by empowering them with the ability to distinguish brand products. This ensures that they can repeat their purchases of brands they liked and avoiding brands they didn't like.

Owning a Federal Trademark registration on the Principal Register provides several important advantages, including notice to the public of the registrant's claim of ownership of the mark, a legal presumption of ownership nationwide, and the exclusive right to use the mark on or in connection with the goods or services set forth in the registration.

Advantages of a Trademark
  1. Constructive notice nationwide of the trademark owner's claim.
  2. Evidence of ownership of the trademark.
  3. Ability to bring a lawsuit concerning the mark in Federal Court.
  4. Registration can be used as a basis for obtaining registration in foreign countries.
  5. Registration may be filed with U.S. Customs Service to prevent importation of infringing foreign goods.
 


Exclusive Rights to a Trademark Owner
Upon registering your federal trademark name, the Unites States government grants trademark owners the right to exclude all other businesses and individuals from using a similar mark on related goods or services. Therefore, you, as an owner of the trademark, have the exclusive right and ownership to use the mark in your business trade. If your trademark is being misused by someone else, then you have the ability to bring a lawsuit action concerning the mark in a Federal court. In fact, you may even be able to make the other party pay monetary compensation.

Nationwide Protection
Nationwide notice gives you protection within the whole Unites States geographical territory. This is one of the most important reasons in registering a Federal Trademark. Without a Federal registration you may be only protected within your local area under the common law. Federal Trademark registration is an important step that enables any business to grow and expand in other markets of the country without the fear that someone else is already using their trade name.

To expand your business nationally without a Federal registration is risky business because any party who uses your trademark in a different geographical territory than you, and does so prior to your federal registration, will have the power to stop you from using the mark in the particular region of the country in which they have already established their business. In addition, they may even stop you from using your mark locally because you are violating their rights within the national territory. Therefore, is it imperative to obtain a Federal Trademark.

Ability to bring a lawsuit in Federal Court
The owner of a Federal trademark registration has an easier ability to bring a lawsuit in Federal Court against any party who infringes their respected mark. In some cases, the owner may even obtain monetary compensation for their losses. It is possible to recover an infringement monetary award of three times your actual damages, plus attorney fees, and doing so is only possible with a registration.

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