In the business world, protecting one’s identity and capitalizing on one’s brand are key aspects. Brand registration and royalty contracts are two pillars that support these ambitions. Both ensure that the value and uniqueness of a brand is recognized and remunerated appropriately. In this guide, we will explore how these elements are intertwined and why it might be helpful to engage a professional in the field to best manage them.
Trademark registration: first step toward protection
Registering a trademark ensures that a business can distinguish itself in the marketplace by protecting its logo, name or slogan from unauthorized use. This protection is critical to building a solid and recognizable brand identity.
The royalty contract: monetizing the brand name
Once a trademark is registered, its owner may decide to grant third parties the right to use it, often in exchange for a royalty. This contract states:
- Scope of use: Where and how the mark can be used.
- Duration: How long the mark can be used for.
- Compensation: The royalties that the owner will receive for each sale or use of the trademark.
- Terms and conditions: Additional clauses governing the use of the trademark and the protection of the owner’s rights.
When it is useful to file your trademark and how to do it.
As you may have guessed, a brand is much more than just a name or logo. It represents your brand identity, your reputation, and distinguishes your products or services from those of your competitors.
I recommend that you file your trademark as soon as you have a clear idea of what it represents and before launching any related products or services. In this way, you protect yourself from those who might want to exploit or copy your brand.
A trademark, the moment it is registered entitles, possibly to those who want to license it, as we have seen, to royalties for intellectual property.
Only there is a problem. Many people forget one thing that is as stupid as it is fundamental. That would be to say the license agreement.
A license agreement is the contract by which the trademark registrar assigns the exploitation and also any benefits of a registered trademark in exchange for a specified fee.
However, these fees cannot be astronomical because a brand cannot be given an arbitrary valuation. A filed appraisal must be done, and any amount exceeding 10% over the corporate income given in royalties is something that automatically can lead you to audits by the Internal Revenue Service.
How to deposit it:
a. Preliminary search: Always start with a background search. Make sure your brand is not similar or identical to existing brands in your industry and there is no confusion both visually and phonetically. This will prevent you from future legal problems.
b. Completing the application: Once you are certain of its uniqueness, complete the application for registration. Describe in detail the products or services associated with your brand and be sure to classify them in the right category.
c. Filing: Send your application to the appropriate trademark registration office in your country. There may be fees to pay, so be sure to check it out thoroughly.
d. Waiting and Response: After you submit your application, there is a waiting period during which the office reviews your request. If there are objections or oppositions, now is the time to address them. Here, having an experienced lawyer can really make a difference.
e. Finalization: Once all objections have been overcome, your trademark will be registered and you will have all exclusive rights to it.
With a registered trademark, not only do you protect your brand identity, but you also have a competitive advantage in the marketplace, as well as a tax advantage, avoid costly legal disputes, and strengthen your customers’ trust.
Why turn to an expert
Both of these aspects, registration and royalty, require specific and in-depth knowledge of the industry. This is why it is essential to seek expert advice:
- Understanding the laws: Trademark registration and royalty regulations are complex and constantly evolving.
- Protection: A well-registered trademark and a well-drafted royalty agreement reduce legal risks.
- Valuation: An expert can help you determine the proper value of your royalties.
- End-to-end support: From trademark registration to royalty agreement drafting, a professional will guide you every step of the way.
Thus, to ensure that your brand is protected and that you derive maximum benefit from its use, trademark registration and a well-drafted royalty agreement are both essential elements.
By turning to me, you will have the experience and expertise of a professional to guide you every step of the way.
P.S.: If you need direct help from me, please contact me here: https://orestemariapetrillo.it/contattami/