5 Reasons Why Registering Your Trademark Is a Must!

What is a Trademark? Trademark is your brand’s identity. It can be argued that Trademark can encourage one’s business activities, as long as the Trademark is “managed” properly. Using the word “manage” when talking about Trademark is a bit odd. After all, Trademark is not a living thing that can move on its own to help business, so what does “manage your Trademark” mean?

The short answer is registering it. Register your Trademark then you may use it for your marketing needs. Still not convinced you should register your Trademark? Let us help. Here are 5 (five) reasons your Trademark must be registered immediately:

1. For Legal Protection
   This is the main reason for registration. As you may know, the Trademark system used in Indonesia is the first to file. Whoever registers first is the party who gets legal protection. No method other than registration can lead to legal protection of the Trademark.

   What kind of legal protection is meant here? It’s the legal basis for a lawsuit and the legal basis for carrying out other legal activities related to the Trademark (license, international registration of the Trademark using the Madrid Protocol, etc.).

   Without registration, if other parties imitate your Trademark, you cannot sue on the basis of Trademark infringement. This is because Article 83 paragraph (1) of the Law on Trademark and Geographical Indication states that:

   “The owner of a registered Trademark and/or the recipient of a registered Trademark License may file a lawsuit against another party who unlawfully uses a Trademark that has similarities in principle or its entirety for similar goods and/or services in the form of:
   1. Claims for compensation; and or
   2. Cessation of all actions related to the use of the Trademark.”

   It can be seen that there are only two parties who can exercise the legal right to sue for Trademark infringement, namely the owner of a registered Trademark and the recipient of a registered Trademark License.

   Thus, in the eyes of the law, an unregistered Trademark, if imitated by another party, does not provide a legal basis for the owner to file a lawsuit for infringement of the Trademark. Cancellation of the Trademark may still be proposed, even though the Trademark is not registered. However, that is all you can do as the owner of an unregistered Trademark.

2. So No One Beats You To It
   The industrial world is competitive; you want to make it? You have to be quick when it comes to opportunities. That is reflected in the world of Brands. A unique Trademark should be registered before it’s marketed correctly. This is done so that no “inspired” party precedes you by registering first.

   It’s also possible that other people thought of the same Trademark as yours. If this happens, it will be a matter of who registers first. You don’t want to be the late party, do you?

3. To Ensure The Eligibility of Your Trademark
   The Trademark and Geographical Indication Law regulates several reasons that can be used to refuse or declare your Trademark unregistrable. This can be seen in Article 20 and Article 21 of the Trademark and Geographical Indication Law.

   One of the reasons why Trademark cannot be registered is because the Trademark contains information that does not line up with the quality, benefits, or efficacy of the goods and/or services produced. Suppose you sell toothpaste called ‘The Most Effective’. The toothpaste has been sold, the Trademark already has a reputation. After all that, you just thought of registering it.

   Your Trademark will be considered unregistrable as there is a misleading element to the public about the product’s quality, benefits, or efficacy. Suppose you have spent enough time building your brand. In that case, it will be a big disappointment to find out that the effort was in vain because the Trademark could not be registered or was rejected.

   Make sure registering your Trademark is the first step you take before properly building your brand.

4. To Build Your Brand’s Presence
   As explained in the previous point, it would be a mistake for those who want to build a business not to register their Trademark first. In addition to ensuring that your Trademark can be registered, Trademark registration can be carried out to show your brand’s presence to competitors.

   Indonesia has an Intellectual Property Database (PDKI) system that contains data on Intellectual Property that has been registered, applied for, or rejected. Suppose you created an attractive Trademark with the potential to attract consumers. In that case, your registration with DGIP can ensure that no one imitates your Trademark, either intentionally or unintentionally.

   Why is that? Because your Trademark will be publicly shown in PDKI. PDKI is easily accessible so that competitors entering the same market will know the existence of your Trademark. At least that knowledge will prevent competitors from using the same or similar Trademark.

5. To Start Building Your Brand’s Reputation
   Maintaining brand reputation is one of the many business strategies that can increase profit if it’s carried out regularly. However, efforts to maintain the reputation of the brand should not be carried out before your Trademark is registered.

   It is known that generally, Trademark registration is carried out to provide legal protection and certainty to Trademarks. Trademark can be used for licensing and other legal activities if registered.

   Do you want to build a reputation by distributing your products overseas? Trademark can be disseminated to other countries effectively after registration. Manually registering in every country can be time-consuming and expensive, so use the Madrid Protocol. What does the Madrid Protocol demand? Registration or at least an application for registration here.

   Do you want your business to grow effectively to face the top competitors? Try expanding connections and marketing your product or service. Other companies will be reluctant to work with brands with no legal certainty. Licensing would not be an option because a non-registered Trademark cannot grant licenses to other parties. Product marketing? It can be done, but not effectively, because your brand is considered uncertain or is in the “grey area”. Building a business so that it becomes known cannot be done simply by marketing a product or service. Your Trademark needs to be protected too. Why build the reputation for a brand with an uncertain, unregistered Trademark?

   Trademark registration is a small investment for the future of your business. Building a thriving business will require you to make expenses, whether it be money, time, or effort. Trademark registration is one of the expenses you must do if you intend to push your business into a business that can go head to toe with big competitors.

Do not hesitate to contact us via our email, marketing@ambadar.co.id, for your IP needs. We’ll be ready to assist.

Source(s):

• Law Number 20 of 2016 concerning Trademark and Geographical Indication as changed by Law Number 11 of 2020 concerning Job Creation