Why You Should Protect Your Small Business With a Trademark
- Out of the Box Advisors
- Mar 29
- 7 min read
Let’s start with the basics: Have you ever thought about trademarking your business? Perhaps you simply thought that your small business isn’t quite the size to warrant such a thing. However, if you truly believe in your business and what makes you unique within your industry then there’s likely a potential competitor out there ready to steal your thunder.
Let’s face it, you have likely spent countless hours designing your products, logo, and the overall identity of your business. Therefore, you don't want someone to come along and simply take all this hard work out from under you. And the longer you build a brand without protecting it, the messier that problem can become later.
If you don't have a trademark, your business is not fully protected. Why else would all the major brands trademark their businesses? In order to deter those wily copycats, of course. And as your business grows, federal registration can offer broader protection than an unregistered mark, including nationwide rights and public notice of your claim. In fact, any reputable business coach will advise securing a trademark as soon as you establish your business.
But what exactly is a trademark and how can it protect your business?
In this article, we'll discuss the importance of trademarks to small businesses and why they should be a priority. Keep in mind that we are not giving legal advice, but rather the business case and general information. We always strongly recommend that you contact a specialized business attorney to navigate trademarks for your business.
Unboxed Wisdom: Key Takeaways on Why Trademarks Matter for Small Businesses
A trademark helps protect the names, logos, slogans, and other brand elements that help customers recognize your business.
You can build some rights through use, but federal registration gives broader protection and lets you use ® for the registered goods or services.
A clearance search before filing can save you a headache, because likelihood of confusion is one of the most common reasons applications are refused.
Trademark protection is not just legal paperwork. It also supports brand trust and helps guard against counterfeiting and fraud.
The earlier you think about trademark protection, the easier it is to avoid confusion, copycat problems, and expensive rebranding later.
What Is a Trademark?
In a nutshell, a trademark is a form of intellectual property protection. It allows you to protect your business’ names, slogans, and logo. Essentially, it’s all the things that define who you are as a business to the world. And if your business sells services instead of physical products, it’s worth noting that the USPTO uses “trademark” broadly to include service marks too.
A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. - United States Patent and Trademark Office
People often confuse it with copyright, which is similar. But trademarks, patents, and copyrights protect different things. You cannot copyright a word or phrase. Copyright is generally used for literature and songs, etc. More broadly, copyright is for original creative works, while trademarks protect source-identifying brand elements. As a simple example, Harry Potter is copyrighted to prevent someone from writing a new book with the exact same characters.
Once you have officially secured a trademark, it establishes a much stronger legal position for the business. If you discover another business is using your trademarked property, you may have legal standing against the potential offender. It may even help dissuade someone from even attempting to copy your hard earned work.
How Do We Trademark Our Intellectual Property?
First and foremost, we strongly recommend you find an attorney to represent your business while going through this process.
One of the reasons for that recommendation is based on the tricky nature of how “common law” works with respect to trademarks in the United States. Technically speaking, you do not have to officially register a trademark to begin establishing rights in it. Those rights can arise from using the mark in commerce, but they are generally limited to the geographic area where you are actually using the mark.
But if you go that route, know that if you encounter a business who had copied you, or maybe even just happened to come up with the same idea innocently, then proving your claim becomes very difficult indeed.
When you officially register and receive approval, then you have an established time and record of your property. And to keep the symbols straight: you can use TM for goods or SM for services even before registration, while ® is for marks that are federally registered with the USPTO.
Confusingly, if you register with the USPTO, instead of using TM, you would begin to use the ® symbol, which is almost exclusively associated with copyrights, colloquially.
A Few Smart Trademark Steps Before You File
Before you rush off to file, do the least glamorous part first: search. One of the most common reasons a trademark application gets refused is “likelihood of confusion,” meaning your mark is too similar to one that already exists for related goods or services.
The USPTO recommends a clearance search that goes beyond the federal database and also includes state databases and the internet. In plain English: check whether someone else is already out there using something confusingly similar before you get too attached to the idea.
It also helps to get very specific about what you are protecting. Is it your business name? Your logo? Your slogan? Trademark rights are tied to the mark and the goods or services it identifies, so clarity up front saves headaches later.
How Do Trademarks Protect Your Business?
As we mentioned before, a trademark is a form of protection. If you have an established business but haven't secured trademarks, your business is left exposed. Another business could actually replicate your logo and phrases.
Worse still, if they managed to obtain the trademarks before you, you could be forced to stop using them. At that point, things can turn into a messy fight over who used the mark first, where it was used, and who can prove it. If they take your idea and then establish a claim before you, then you could potentially have a serious problem on your hands.
Or in another way, it could mean that you would have built up a successful brand only for someone to take it away. Keep in mind that this can happen accidentally too. It does not always mean that someone was being malicious. Adding a trademark for your brand helps protect you from both the innocent and the more ill-natured characters out there.
Trademarks Build Trust in Your Small Business
Not only do trademarks help with small business branding but, customers can feel safe with what they are buying. The USPTO also notes that trademarks help guard against counterfeiting and fraud, which is part of why clear brand protection matters as a business grows.
When they see the trademarked logo, it can help reinforce that they are dealing with the real business and not an imitator. When brands become bigger, fraudsters often try to make and sell counterfeits.
This is common in the fashion industry where lots of people are selling fake clothes under big brand labels. They tend to be sold in shady markets and online under a fake store.
You can often spot fake goods just by looking for the trademark stamp. If you look at the Levi Strauss logo, you'll see a ® symbol above it. When you see this on any clothes in a shop, you have a good idea that it's genuine.
But of course, this isn’t a perfect shield since there’s not much stopping fraudsters from simply putting that emblem on their products as well. But, it's oddly uncommon.
Why Would a Business Coach Recommend a Trademark?
As you can see, trademarks are vital for any business to become successful, especially long term. It's actually rather worrying about how exposed your business can be without them. This is all the more reason why you need to get one and fast. Or at the very least, start thinking about the process before your brand gets bigger, more public, and more expensive to untangle.
Small, local businesses are the most susceptible for having their ideas and designs stolen. This is especially true if your business model is exceptionally unique and exhibiting fast growth. Generally speaking, the more appealing your business is to your customers, the more appealing it will be to those who would profit off your idea.
A small business coach's primary role is to help guide the business owner through the threats and strategies needed to be successful. Trademarks are often one of those things that goes unnoticed by a new, inexperienced business owner. You business coach is there to help you know what you need to know before it's too late.
Hopefully we have reinforced what a trademark is and why your small business needs one to keep your hard work safe. Bonus: even if you are not ready to file tomorrow, getting clear on your name, logo, slogan, and search process now is still a smart move.
Out of the Box Advisors exists exclusively to help those very same small, local businesses grow and succeed. The bonus success that we can offer a business makes it more likely to encounter potential fraud. Thus, we always recommend obtaining a trademark for your brand.
If you need help, why not secure the services of an experienced business coach who can advise you on both trademarks and all other items needed to grow your small business? It all starts with a free consultation! Book yours below:
FAQ: Small Business Trademarks
What does a trademark protect for a small business?
A trademark protects the brand elements that help customers recognize your business, such as a name, logo, slogan, design, or a combination of those things used with your goods or services.
Do I need to register a trademark to have rights?
Not necessarily. Rights can arise from using a mark in commerce, but those rights are generally limited to the geographic area where you actually use it. Federal registration gives broader rights and stronger protection.
Why should I search for similar trademarks before filing?
Because one of the most common reasons applications get refused is likelihood of confusion with an existing mark. The USPTO recommends doing a clearance search that includes federal records, state databases, and the internet.
When can I use TM and when can I use ®?
You can use TM for goods and SM for services even before registration. The ® symbol is for marks that are federally registered with the USPTO, and only for the goods or services listed in that registration.
