Why Trademark Registration is Crucial for E-Commerce

By: John Butcher

In the world of online sales, branding can be the mainfactor that leads to a business’s success or failure. 21^st-centuryconsumers have no shortage of options, and with many companies vying forsimilar markets, the difference between them comes down to the brand more thanthe product. This is where trademarks come in.

What are Trademarks?

Trademarks fall under the general category of intellectualproperty law, or IP law. They are one of four primary elements of IP, the otherthree being copyrights, patents, and trade secrets.

Whereas copyrights and patents can protect a brand’screative work and inventions, and trade secrets protect confidentialinformation, trademarks exist to protect the brand itself. Trademarks shield elementsrelated to brand identity from imitation or impersonation. This extends fromthe obvious aspects such as company names and logos, to more subtle details likebrand color schemes, soundmarks, and slogans.

Trademarks do not legally have to be registered if businessis being done only in one geographic location, but in the case of e-commercethat point is moot. Customers online can come from anywhere in the US andabroad. In this case, a trademark should be registered with the U.S. Patent andTrademark Office (USPTO) in order to be able to litigate againstbrand identity theft.

Why Register a Trademark?

The small “TM” or “R” symbol next to a brand name may seeminnocuous, but with it comes an association of trust and identity. Registered brandnames ensure that other companies cannot try to impersonate them without fearof litigation. Without a registered trademark, the original owner has little tono protection against infringing parties.

Brand identity also involves taglines and logos, whichshould be trademarked as well. Going beyond trademark registration , it is alsocrucial to file design patents for the aestheticproperties of a product that can define a brand. Just like Apple products arerecognizable by their white, sleek color scheme, and glass Coca Cola bottleshave a signature shape, most successful companies make their products instantlyidentifiable without the need to see a logo or brand name.

Trademark registration at its core exists to enforce brandidentity, and design patents help add to that principle. But what exactly makesbrand identity important?

Brand Identity in E-Commerce

The reason that brand identity, and thus trademarkregistraton, is so important in the e-commerce market is that being successfulinvolves so much more than offering a good product.

Of course, having a great product or service to sell is agreat foundation, but the rapid evolution of consumer-focused e-commerce addsmany more factors into the equation. The main issues here are a saturation ofoptions and the reliance on consumer trust.

The online marketplace is not limited by geography or a timeschedule. This mean that consumers don’t need to buy based on convenience orproximity; they can find the exact product they’re looking for, sold by amyriad of providers, and choose the one that most appeals to them. Given thissaturation of supply, purchasing decisions become more influenced by brands.

This leads to the second factor: consumer trust. Theinternet, being as intangible as it is, offers many options but among thosethere will be lower quality products and numerous scams. According to J.D.Houvener of Bold Patents:

“E-commerce offers a decreased ability to try things aheadof time and engage with real people to get a sense of their reliability. Thus,consumers will try to find companies they trust and become very loyal to thosethat reward their trust with good, reliable service.”

Having a consistent brand identity enables that building oftrust among consumers; people will know the brand’s name, logo, and slogan andwill be able to recognize other people using its services or buying itsproducts. A collective trust can develop when people see other people using aproduct; this almost becomes an endorsement. Thus, trademark registration becomescrucial to e-commerce market success in the long term.

The Takeaway

Trademarks are essential for e-commerce because theyestablish brand identity. This means that no other companies in the field cantarnish a brand’s reputation by using the same name, logo, or slogan.

A positive brand association, or even just name recognition,boosts e-commerce sales and success. In a market where consumers have so manyoptions to choose from, good brand awareness can often make the crucialdifference. Every business should make sure to register trademarks as soon asthey can to reap their benefits.

Disclaimer: This article discusses general legal issues and developments. Such materials are for informational purposes only and may not reflect the most current law in your jurisdiction. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel in the relevant jurisdiction. Bend Law Group, PC expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this article.