The number of new businesses in the UK has started to increase again following the pandemic. Business accelerators and incubators for start-ups are also on the rise, demonstrating the thriving culture of entrepreneurship in the UK.
As entrepreneurs embark on new ventures, one of the most important considerations will likely be the development and protection of a brand. Business and product names can be extremely valuable assets to a new business and it is vital that steps are taken at an early stage to decide on a strong brand and ensure its protection in the market.
The brand a business chooses can have a huge impact on its ability to grow and attract external funding or investment to increase its value. It is important that any brand name is distinctive and that it is not in use by any third party. Businesses can run into a variety of difficulties if they have not conducted sufficient checks in advance of launching a trading name or brand. The worst case scenario is that a business is forced to change its brand name and pay damages to a third party for infringement. This can result in a significant amount of investment being lost on aspects such as website development, marketing campaigns, manufacturing branded products and acquiring domain names. Getting a brand name right from the outset can ensure that businesses are protected at an early stage and avoid difficulties further down the line.
Brands can be protected by means of registered and unregistered trade marks in the UK. By virtue of trading under a particular brand or using a specific logo, a business will develop goodwill in that mark which can add value to the business and potentially be used to prevent third parties from using a similar name or logo.
However, a registered trade mark tends to be the most effective way for a business to protect its brand. In the UK, trade marks can be registered by making an application to the Intellectual Property Office. The application must set out which goods or services the trade mark is intended to be used for and these are categorised into various use classes. Similar or identical trade marks may exist in different categories. A good example of this is that the mark “Polo” can be used in relation to cars, clothing and mint sweets with no consumer confusion because the goods are very distinct.
A new business should consider what brand they wish to protect and what goods and services it will provide. Trade marks are also country specific, meaning that if a new business intends to trade in other territories then it should also consider applying for trade mark protection overseas in any relevant countries.
Effectively protecting a brand from the outset can have a huge benefit for entrepreneurs starting new business ventures, both in terms of prevention of infringement by third parties and the ability to maximise and protect the value of the business and attract investment for growth.
Call us on 03330 430350 to find out more about our search services or to start a search. Or make an enquiry online and one of our Trade Mark Agency team will contact you.
