Start up companies often invest unnecessary funds in trademark related matters, which involves multiple repetitive and complex factors.
Firstly, there is a serious lack of trademark awareness. Many startups only consider a trademark as a simple identifier, without fully realizing the enormous commercial value it carries. They do not understand that trademarks are not only symbols of a brand, but also important intangible assets of a company that can play a crucial role in market competition. Under such erroneous cognition, companies may arbitrarily design their trademarks without considering their uniqueness, distinctiveness, and recognizability, resulting in subsequent rejection due to the lack of distinctiveness of the trademark, forcing them to redesign and reapply, wasting a lot of time and money.
Secondly, the trademark search work is not done sufficiently. Trademark search is an important prerequisite for trademark registration, but many startups do not pay enough attention to it. They did not conduct comprehensive and detailed searches through professional trademark search platforms or entrust professional institutions, and failed to timely discover identical or similar trademarks that already exist in the market. After submitting the trademark registration application, it was discovered that it had been rejected due to conflicts with others’ prior trademarks. The previous application fees were wasted, and reapplying would require additional investment.
Furthermore, blindly pursuing uniqueness. Some startups excessively pursue uniqueness and novelty in order to make their trademarks stand out, using obscure and complex vocabulary or graphics, and even violating relevant provisions of trademark law. For example, using vocabulary with negative effects or registering a generic name as a trademark. Such trademarks are not only difficult to pass the examination, but may also face legal risks. Once rejected or opposed, the previous investment will be in vain.
Additionally, there is a lack of professional trademark awareness and experience. Start up companies often lack professional legal or trademark management personnel, with little understanding of the trademark registration process, laws and regulations, and precautions. When applying for a trademark, the application may be rejected due to reasons such as incorrect filling or incomplete preparation of materials. At the same time, when facing issues such as trademark opposition and infringement disputes, they do not know how to respond correctly and can only spend a lot of money hiring lawyers or seeking help from professional institutions.
Finally, misled by unscrupulous agencies. There are some non-standard trademark agencies in the market who, in pursuit of short-term benefits, exaggerate the difficulty and cost of trademark registration to start-up companies, inducing them to purchase unnecessary services or packages. Or during the trademark registration process, failure to fulfill duties seriously may result in problems with the application and cause losses to the startup company.
In summary, in order for startups to avoid wasting money on trademarks, they need to strengthen their understanding of trademarks, conduct thorough trademark searches, establish correct trademark design concepts, enhance their trademark awareness and professional abilities, and carefully choose trademark agencies.