In a heavily overcrowded market, building a business that is distinguishable from a ton of competitors and that has earned people’s trust is a serious task. In fact, during the startup phase of each business, without having a built brand, companies are forced to look for clients. When a company builds its reputation, clients start to come on their own. Trademarks largely contribute to this.
How many times have you seen a product you have been using for years by a manufacturer and were satisfied with the goods, and said to yourself: “It definitely has to be a good product, as Company X makes it.” This is a huge privilege for companies with an established reputation on the market. Oftentimes, they don‘t even have to advertise new products. The quality that has surrounded the product for years and has provided positive connotations to consumers at the very mention of the company name is more than sufficient.
With a trademark, your company indirectly benefits from the luxury of no longer having to waste valuable time and resources on bringing new clients.
There is another important segment in the context of competitors on the market.
Namely, when another company uses your mark in order to mark their identical or similar goods/services, while you have already established a brand, this competitor’s company takes your effort and time invested in the brand building.
Let’s say you have been building a brand for two years, that is, the process from point A – when you bring and look for clients, to point B – when clients come on their own and are interested in your goods/services, without you spending any time and effort for this purpose. The competing firm, using your mark, skips the path from point A to point B, only thanks to your mark, and immediately picks the fruits already ripe at point B. The mark should provide protection and reward to your commitment while building the brand. With a trademark, you show both yourself and the others that you appreciate everything you invested in order to get your business up to point B.
Interestingly, trademark design can make a sole influence on the selection of products on the market, even if you do not have an established brand. For example, when buying a gift, for example, a bottle of wine you have not tried before (and the wine bottled in such a way you cannot try it) how many times have you relied upon the design? Nice design and logo play a key role at that point because you want the gift to look nice. It does not come as a surprise that world-renowned companies carefully take care of the appearance of the trademark, which is practically an inseparable part of the product it designates. This is why the so-called “suggestive” and “allusive” character of the trademark has been frequently spoken of.1