Is Trademark An Asset? - Drishti Law

Having a unique brand identity is the most valuable asset of any business. However, this identity is equally vulnerable to loss. The only way to avoid this is to assume ownership of it as soon as possible through trademark registration. 

Read further to know how your trademark can become an invaluable asset in your business’s success path.

What is a Trademark?

Trademarks serve as a unique identity for a brand. A trademark is a symbol, logo, phrase, or design representing a brand’s products or services in the marketplace. When a business registers its trademark, it is essentially claiming exclusive rights over that identity, and subsequently, no one in the market can sell their products or services by using that identity or an identity similar to it. Trademark registration is a powerful tool which, if capitalized properly, can provide profitable returns to a brand. 

Ways in which Trademark is an Asset for Your Brand

We shall now see in what ways can a trademark be incentivized to get a profitable return for your brand. 

Your Brand acquires Legal Protection

This can be the biggest advantage of having a trademark. If your trademark is registered with the United States Patent and Trademark Office (USPTO), you can avail all the safeguards guaranteed by federal law to trademark owners. Having a federal trademark registration means that you acquire exclusive ownership of that mark in the geographic area of your registration. Now, no one else can register the same mark and you can freely use the said mark for conducting your trade and commerce. 

Even if someone uses it without your permission i.e., they infringe upon your trademark, the law provides you with the avenues to bring legal action against such parties. You can sue them for damages and even seize the infringed goods. These legal avenues play a vital role in saving the goodwill and reputation of your brand and even act as a deterrent against potential infringement.

It establishes you as a Benchmark for Quality

Trademarks have always been a hallmark of conveying a message of quality to consumers. If you have federal registration of the mark, you can use the ‘R’ symbol alongside your mark and this would indicate that you are a trusted brand having quality assurance for their products or services. 

The importance of the ‘R’ symbol cannot be underestimated. When consumers see that your brand is registered, they subconsciously take it as a legitimate brand having certifications and verifications from quality and control institutions. Consequently, this yields customer trust and loyalty. 

Trademark increases the Brand Equity

Brand equity pertains to the perceived market value of your brand from the perspective of the consumers. In other words, it is the amount a consumer is willing to invest in your brand simply because of its reputation.

Examples can be taken of the Coca-Cola® and an unregistered brand. In the event of an identical product launch by both, the consumer is most likely to be willing to pay more for the former because of the symbol ‘R’ attached to its name. They are aware that a marked product is trustworthy as compared to an unregistered one. 

Trademarks can be a Source of Revenue   

This might be the first time you have heard about this or you are already aware that a trademark can also be a source of revenue for you. There are two ways in which a trademark generates income for the owner. 

One route is trademark licensing. When you license your brand name, it means that you are allowing the other parties i.e. licensee to use the goodwill and reputation of your trademark for their products. This not only benefits the other party but also opens doors to a new market for your commercial endeavours. Licensing the trademark is the best way to expand the reach and growth of the brand. 

The second way is by selling your trademark. If you wish to part with your business, then having a strong trademark (that has gained considerable prominence in the market over the years) would make it easy for you to sell it. This can be done by incentivizing the popularity of the trademark.

Trademarks are Flagbearers of Goodwill in the Market

As said above, trademark plays a key role in building consumer trust and loyalty. When you license your mark, it sends a message to the consumer base that the products being manufactured or the services being provided are from an authorized dealer and they would be maintaining the same level of quality standards as the original business does. 

You can maximize the returns on your registered trademark by using it consistently for marketing purposes on different platforms such as social media so that potential customers can easily identify your brand and its quality in the marketplace. Marketing the trademark helps in reducing the likelihood of confusion in the market as well as making the consumers aware of infringed or copied goods. 

Registered Trademarks have an International Reach

You can never underestimate the reach of registered trademarks. By simply having one registration with the World Intellectual Property Office (WIPO), you secure the right to use your brand anywhere in the world without any worries. Having a single global registration translates into endless possibilities for the growth of your business.  

You can expand your operations internationally by licensing your mark. In this way, a third party will handle the matter of establishing your brand’s hold in the foreign market without you having to divert your focus from your main line of business.


Trademarks are not just names in a fanciful style – they are the driving source of your business’s success. Registering your brand means you can gain a strong footing in the market, build customer loyalty and trust, and even generate income from it. 

If you wish to register your trademark, or you have concerns about brand-building in general, you can make a discovery call with Drishti Law to see if our approach would be appropriate for your situation.