Author: Boyana Boyadzhieva
Intellectual property plays a vital role in creating and protecting brand identity, which can often become a company’s most valuable asset. The best way to protect it is to register it as a trademark.
Under Bulgarian law, a trademark can be words, including the names of persons, letters, numbers, drawings, figures, the shape of the goods or their packaging, colors, sounds, or any combination of such signs.
This article discusses the advantages that arise from the registration of a trademark:
Exclusive rights and protection
The main advantage of trademark registration is the exclusive rights it confers. Registration of a trademark grants the owner the exclusive right to use the registered trademark in connection with the goods or services for which it is registered in the territory for which it is registered (e.g. the Republic of Bulgaria or the European Union). This protection allows the proprietor not only to use it but also to prohibit third parties from using it in their commercial activities without the express consent of the proprietor. Thus, the proprietor of the registered trademark is able to prevent the use of marks that are identical or similar to his mark and which are used for identical or similar goods and services, while ensuring the distinctiveness of his trademark.
Brand recognition
Registering a distinctive trademark helps consumers distinguish the source of one company’s goods or services from those of others. Thus, the possibility of consumer recognition will increase, which in turn will help to establish a strong market presence. Hence, consumers who have already tried the branded goods or services will know what quality to expect, which in turn will create a sense of trust and build brand loyalty.
Deterring violations
Trademark registration serves as a deterrent to potential infringers. Once a trademark is registered, it is published in the official gazette of the relevant department or official trademark databases. This serves as public notice of the company’s ownership of the trademark and helps potential infringers and competitors avoid inadvertent infringement as they risk legal repercussions.
Opportunities for expansion, such as licensing or franchising
A registered trademark provides a solid foundation for business expansion and licensing opportunities. Trademarks can be licensed to other entities, allowing them to use the brand identity in certain markets or industries. Licensing agreements can generate additional revenue streams and extend the reach of the brand without compromising control over its integrity.
Trademark registration also facilitates franchising opportunities. When considering franchising or partnership opportunities, potential investors are more likely to be attracted to a business that has protected its brand through trademark registration.
Asset value and impairment
Over time, a registered trademark can become a valuable asset and an investment with increasing value. As a business grows and becomes established in the marketplace, the goodwill associated with a trademark can increase its value. A registered trademark can be sold, transferred, or even used as collateral to secure loans, providing opportunities to use a company’s intellectual property for financial gain.
Global protection
Trademark registration at the national level is essential, but if the enterprise plans to expand internationally, trademark registration becomes even more important. By obtaining trademark protection in different jurisdictions, a company can protect its brand from unauthorized use and maintain consistency across markets. International trademark registrations offer protection against counterfeit products and ensure the integrity of your brand is maintained in the regions in which you operate.
Trademark registration offers a host of business benefits, from legal protection and exclusivity to better brand recognition and expansion opportunities. It is a proactive step that allows businesses to establish and protect their brand identity in an increasingly competitive business environment. By investing in trademark registration, businesses can secure their market position, prevent infringement and leverage their intellectual property for long-term success.
This material prepared by Boyana Boyadzhieva aims to provide more information about the advantages of registering a trademark. It does not constitute a legal opinion and cannot be interpreted as individual consultation on any concrete facts or circumstances. The advice of an intellectual property specialist should be obtained for specific questions and situations. For more information on the above-mentioned issues and individual consultations, please contact KrasimiraKadieva law office at 00359 882 308 670 or make an inquiry using the contact form on this website. Boyana Boyadjieva is a legal associate at the law firm. She holds a Master’s degree in Intellectual Property Law from the Queen Mary University of London. Prior to joining the team of the law firm, Boyana interned at the European Union Intellectual Property Office (EUIPO). Her professional interests are related to intellectual property, data protection, e-commerce, and contract law, and regularly attends conferences, practical courses, seminars, and webinars in these areas of law. She is fluent in English.