Understanding the Best Time to Get a Trademark

Why Is Filing for a Trademark Important?

A trademark is a form of intellectual property that legally protects a company’s name, logo, or slogan, distinguishing it from competitors. This form of protection prevents others from using your business name or brand elements in a way that could confuse consumers. Trademarks help maintain the uniqueness of your business and build trust with customers by ensuring that your goods and services are tied to your company alone.

Failing to secure a trademark can expose your business to many legal and operational risks. For example, if another company trademarks a name similar to yours, you could face legal action that could force you to rebrand. This rebranding process is often costly and can erode customer loyalty that you’ve worked hard to build. Therefore, understanding the right timing for filing a trademark is not only important but can be a make-or-break decision for your business.

When Should You Trademark Your Company?

The simple answer to this question is as soon as possible. It is best for business owners to begin the trademark application process as soon as they file their LLC or corporate paperwork. After all, filing for a trademark before actually launching a business means that you can guarantee that protection of your name begins before you start selling any goods and services. 

Apart from trademarking, business owners must conduct a comprehensive trademark and name search. This search is conducted via the US Patent and Trademark Office (USPTO) database and ensures that another company does not already use your company’s proposed name. 

Although some business owners rely solely on a name search–which is conducted during the LLC/corporation application process–it is not wise to rely on this search alone. Bear in mind, however, that the LLC or corporation name verification process only checks the company names in your specific state—and not names in the other 49 states. 

As a result, business owners run the risk of using another company’s name in another state if they choose to skip the trademark search. This has major consequences since your company could be forced to stop using your name if it infringes on another company’s name.  

What Are the Consequences of Not Filing a Trademark?

If another company with a similar name exists or files for a trademark first, you could be legally barred from using that name. This could lead to an expensive and time-consuming rebranding process, impacting everything from your marketing strategy to the packaging of your products.

Rebranding due to trademark issues not only costs money but can disrupt customer relationships and damage the reputation you’ve built. The average cost of rebranding an SMB can range from $10,000 to $50,000, depending on the scale of changes needed. Additionally, it takes time to rebuild brand recognition, which may hinder your business growth.

When Should I Trademark a Product Name or Logo?

The answer to this question depends on when you choose to begin selling your product. If you have already started to sell your product, do not wait to file a use-based trademark application. 

However, it makes sense to wait for business owners who have yet to begin selling their products. This is because “intent-to-use” (ITU) trademark applications—for business owners who plan to use particular professional names in the future—require owners to file another application demonstrating evidence of use. This application is associated with additional fees.  

Business owners planning a product launch in the future may want to wait until the launch is complete before filing a use-based application to save money.

Always remember that waiting comes with certain consequences, such as another company applying for a similar name and beating you out on the name you hoped to use. 

What Are the Advantages of Filing First?

The USPTO reviews trademark applications based on their filing date. This means that applications submitted first are given priority in the examination process. The concept of “first to file” can be a competitive advantage. Filing early provides an upper hand, as your application is considered before those filed later. If another company applies for a similar trademark after you, their application will likely be denied if your application is approved.

How Does “Use in Commerce” Differ From “Intent To Use?”

The USPTO offers business owners a way to reserve a trademark for the future. When filing a trademark application, you must apply based on either “use in commerce” or “intent to use.” 

For businesses not yet using a trademark, the “intent to use” category allows them to reserve the trademark without fearing another business trying to register a similar trademark. As a result, it is very helpful to apply for an “intent to use” label to protect your business.          

Once the USPTO processes and approves your application, expect to receive a Notice of Allowance, a conditional approval. Once you begin using your trademark, you must submit additional paperwork to complete the registration process.

Is Trademark Registration Costly?

Trademarking is one thing, but registering for a trademark with the USPTO is an important step in protecting your company’s logo, name, or slogan. Understanding all of the required costs is a vital part of trademarking. Take note of the following:

• Electronic filing is more affordable than paper filing
• E-filing costs about $250 to $350 per class
• Trademarking comes with a separate fee (logo, slogan, name), so if you trademark all three, you will pay about $750 to $1,050
• Petitions and letters of protest cost about $50 to $250
• Renewals typically cost about $300

To learn more detailed information about trademark fees, visit this link.

Final Thoughts

Trademarking your business is only half of the equation. As you begin the process of trademarking, you must form an LLC before you launch your business to the public. Knowing that your brand and personal assets are protected will give you peace of mind. 

At NCH, we understand that every step in launching your business matters. Our team of business formation experts, with their extensive knowledge and experience, is here to guide you through every step of the trademarking process and help you set your business up for long-term success. 

Visit our website or call us at 1-800-508-1729 for more information. 

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.