Any commercial activity is carried out under a certain brand. By trademark, customers recognize the products and services of a particular business from those of its competitors in the market, as well as from those of all other merchants. A trademark can be any sign of a distinctive nature, the main purpose of which is to build a relationship between the trader and the consumer, so that the latter can make his choice among the variety of similar goods and services on the market. In the minds of consumers, trademarks are associated with a standard of quality, security and even a sense of belonging. Such signs may be words, including names of persons, letters, numbers, drawings, figures, the shape of the goods or their packaging, a combination of colors, sound signs or any combination of such signs.
Successful branding is one of the most valuable assets of a company. Brands are used as indicators of taste, quality, prestige and reputation. In other words, consumers associate the value of a product with its brand. For example, brands such as Mercedes, Sony, Nike and Marlboro do not need a presentation. Customers of these brands can rest assured that when they buy products with their branding, they actually get the expected quality. Their brands identify the commercial origin of the products of these companies, but at the same time manifest a certain standard.Although it constitutes an intangible asset, a trademark is a valuable asset whose value is determined by factors such as market establishment, built clientele, origin and level of protection. It can, in addition to be subject of a transfer transactionto redeem its current market value and to make it available for use by license agreement or franchise agreement, which are used as modern tools for business expansion on a global scale.
Trademark registration is not mandatory, with each company deciding for itself whether to protect this asset of its business. In commercial circulation, the use of any brand is allowed, as long as it is not registered. It is logical, however, that when investing in a particular product or service, the owner can protect his investment from abuses. With the registration of a trademark in favor of its owner passes the exclusive right to use it, to dispose of it, as well as to prohibit third parties from using it in its commercial activitywithout his consent.Theoretically, a trademark can be freely enjoyed by one or more companies until one of them registers it. It would be especially unpleasant for any business to build its identity around a certain brand, then its competitor or ill-wisher would register it, along with which to prohibit its use. The laws of some European countries, including Bulgaria, provide for remedies in such situations, but it would be best not to implement them, as they take a considerable amount of time and money. Trademark registration remains the best and cheapest option to protectTrademark.
The protection of the proprietor of the right to a trademark shall last for 10 years from the date on which the application is filed, and the registration may be renewed an unlimited number of times. The protection is territorial and applies to the country for which the registration is requested. At national level, registration can be requested separately to the national intellectual property office of each of the 28 EU Member States, and for Bulgaria this is Patent Office. However, it is possible, with a single application, to achieve protection throughout the European Union by submitting an application to European Intellectual Property Office(EUIPO). At the international level, protection is achieved through a request to World Intellectual Property Organization(WIPO), a prerequisite for which, however, is to have an existing registration at national or European level. Another important feature that determines the level of protection is for which classes and services the registration will be requested according to International Classification of Goods and Services for Trademark Registration(Nice classification). A criterion for the existence of two brands at the same time is that there is no risk of confusion between them.This risk does not exist where the signs are different or when the signs are similar, but the claimed classes of goods and services are different. In practice, this means that it is possible for brands with a similar name to exist as long as they are protected for different commercial activities.In addition to taking into account a number of particularities and requirements, when applying for registration, the list of classes must be formulated in such a way as to indicate clearly and precisely the nature of the goods and services and to allow each article to be classified in one of the forty-five classes of the Nice Classification.
A well-protected trademark builds trust, affiliation, differentiates us from our competitors and carries out direct communication with the consumer. Often, so much money is invested in building a brand and imposing it on the market that to think about protecting it in a timely manner is a matter of not only prestige, but also responsibility for the investment.
In the period of January 23, 2023 to December 8, 2023A new program has been launched Fund for SMEs “Ideas Powered for Business”, which aims to help small and medium-sized enterprises (SMEs) in the EU to protect their rights intellectual propertyby granting grants for the protection of IP assets such as trademarks, designs, patents and plant varieties. Learn how to take advantage of make an inquiry.
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