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7 Reasons Why Trademarks Are Important for Startups

By | Edward

In today’s competitive market, consumers’ purchasing decisions are often influenced by trademarks and the reputation these brands represent. This makes it crucial for every startup company to trademark its brand to foster business growth. Read on for seven more reasons why trademarks are essential to your business.

1.    Protect your brand

Trademarking grants your start-up company the security of your brand. This makes your products and services distinctive from your competitors, making them your intellectual property. By doing so, you prevent competitors from stealing or copying your brand.

2.    Prevent legal issues in the future

Failing to trademark your business leaves it open to lawsuits. Another company could register under the same name, logo, design, or slogan. You may be sued and forced to alter your company’s campaign, website content, and, worse,  your brand identity, even if you used the name, design, or logo first. By registering your trademark, you protect your new business from another company.

3.    More leverage in enforcement

The trademark laws allow you to sue in a federal court if another company or individual poses as you to sell low-quality products, ruining your company’s reputation. The judge may award damages for infringement, grant injunctions, or even allow you to recover incurred legal fees. This also ensures that third-party infringers refrain from maintaining or adopting similar or alternative brands to confuse your customers.

4.    A trademark is an asset

Trademarking your business gives you full rights to the name, slogan, logo, and design, and they become your company’s assets. Trademarks appreciate as the business grows. They can be leased or rented, or used as security interests to secure a loan to expand your business. If you decide to sell your business, you could request more compensation to give up rights to the trademark.

5.    Brand recognition

The market is often crowded, making it difficult for your target customers to distinguish your products from the competitors. Trademarks are an efficient communication tool that helps to capture your customer’s attention, making your brand, products, and services stand out. When customers view your trademark, they immediately recognize it, reducing the chances of looking for alternatives.

6.    They ease the hiring process

Hiring skilled and experienced employees is crucial for every startup if the organization intends to expand. It can be challenging to attract quality staff when starting, so you should consider trademarking your business. Trademarks help your brand be well known, making applicants feel positive about your company which eases the employment process. Trademarking also boosts employee retention, thanks to brand recognition, making employees feel proud to be working with an extensive and reputable brand.

7.    Trademarks do not expire

Unlike other intellectual company properties which have a shelf life, trademarks do not expire. As long as you file the occasional renewal forms, a trademark is an asset that can last as long as your business, giving your company long-term opportunities. An excellent example is Pepsi which was first registered in 1896.


Creating the perfect business name, logo, slogan, and design for your new business is not enough. You further need to trademark it to protect your brand, prevent legal suits, ease the hiring process, boost brand recognition, and get more leverage in enforcement.





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