Why does an entrepreneur needs a trademark? 5 reasons to register your trademark today

Why does an entrepreneur needs a trademark? 5 reasons to register your trademark today

Recently at industry events, I have often heard a valid question: “Why do I need a trademark?” Here, I provide the reasons in what I hope to be a clear and practical answer.

I have observed that many entrepreneurs (especially business owners and startup founders), at the beginning of their business, postpone registering their trademark in an attempt to cut costs. However, it often turns out that failing to protect their brand can cost significantly more than registering the trademark itself.

What is a trademark?

A trademark can be any sign that identifies an undertaking as the source of particular goods or services. Examples include a business name - brand (such as Primark or LPP, Guinness or Żubrówka), a product name, a logo, an advertising slogan.

Trademarks are statutory instruments of commercial protection designed to prevent consumer confusion.

More details on trademarks follow:
https://www.wiadomoscikosmetyczne.pl/wywiady-i-opinie-kosmetyki/jak-chronic-design-i-oznaczenia-markowych-perfum-2523314

Even a sound, shape, color, color combination, video clip or a shape can be a trademark as long as they can be easily conveyed to the public exactly what you are registering.
For instance, the colour per se purple (see picture on the right column) (R.310678) has been registered as a trademark in Poland for telecommunications services provided by the operator Play, as has been registered the colour per se brown (see right-hand column) for parcel delivery services offered by UPS (EUTM 000962076).

Geographical Indications: Geographical names and culturally significant designations play an important role. In Ireland, a notable example is the protected indication “Irish Whiskey” or “Irish Cream Liqueur” which cannot be registered as a trademark for whiskey because it is reserved as a designation of origin. A similar principle applies in Poland: names such as “Oscypek,” “Rogal Marciński,” and “Jagnięcina Podhalańska” are legally protected and cannot be used or registered for products that do not meet the required origin criteria. In both systems, the essential objective is to safeguard consumers from being misled as to the true geographical origin of the goods.

It is noteworthy that in Poland there are 38 such GIs, compared with 13 in Ireland. Within the EU, Italy (888) and France (766) stand out as leaders in securing protected local specialties .

Official State emblems: The official State emblems of Ireland are the Harp and the Shamrock. The use of the State emblem of the Harp is reserved exclusively for official purposes by government departments and State agencies. Authorisation to use the Shamrock is similarly restricted to goods or services of Irish origin.

In Poland, comparable rules apply to national symbols: the White Eagle (the national coat of arms), the national flag, and other state emblems are protected by law and cannot be used for commercial purposes or registered as trademarks without statutory authorisation. It is therefore important to be careful when choosing your brand’s logo.

1. Monopoly on the use of trademark Poland: Registration in the CEIDG (Central Registration and Information on Business) or in the commercial register (National Court Register – KRS) serves only for business registration purposes and does not grant protection for the chosen business name. Business registers may list multiple entities with identical or similar names. These businesses will use them to identify the services or goods they offer.

Ireland: Similarly, registration with the Companies Registration Office (CRO) or in the Business Name Register is purely administrative and does not confer any exclusive rights to the registered name. These registers may also contain identical or similar names used by different traders.

Only the registration of a company trademark in the relevant patent office, e.g., the Patent Office of the Republic of Poland, Intellectual Property Office of Ireland or the European Union Intellectual Property Office, gives the exclusive right to use it in relation to specific goods or services, in the territory indicated in the application (in one country or throughout the European Union, respectively).

Expansion into new markets requires understanding the company’s development strategy and acting proactively. It is also necessary to ensure the protection of rights in new markets (territories).

In industrial property law in Poland and Ireland, the ‘first-to-file’ system applies. This means that the person who files a trademark application first is given the trademark rights and priority, regardless of whether the trademark has been used in commerce. If a competitor previously registers the same or similar name or logo to your company’s mark, it will be difficult to prove priority.

This can lead to:
• long litigation and costly rebranding;
• the need to initiate invalidation proceedings against the competitor's trademark, for example, on grounds of bad faith; or
• complex unfair competition litigation (requiring proof, among other things, of who first used the mark in trade).

2. Protecting your brand from copying Prompt trademark registration should minimize the risk of counterfeiting a trademark once it becomes popular and profitable. It gives the trademark owner a strong position in out-of-court negotiations and increases the effectiveness of cease-and-desist notices. It also facilitates the pursuit of claims and the proving of trademark infringement in court. Similar to the rest of the EU, Poland and Ireland allow trademark owners to pursue injunctions and damages against infringers.

Additionally, publishing a protection certificate on the manufacturer's website or using the ® symbol next to the brand name in e-commerce or advertising may deter potential infringers. It is best to register a trademark before the brand gains recognition. Later, it can be difficult or even impossible if the name becomes common parlance. This is what happened with ‘Dubai Chocolate’ for milk chocolate with pistachios. We wrote about it here: https://www.prawo.pl/biznes/znaki-towarowe-i-geografia-czekolada-dubajska-wodka-kaszubska,534131.html and https://www.wiadomoscikosmetyczne.pl/biznes-kosmetyki/prawo-kosmetyczne/pistacja-na-topie-czy-kazdy-przedsiebiór-moze-uzywac-okreslen-takich-jak-czekolada-dubajska-lub-dubaj-2525858

3. Market control and blocking competitor activities
Registering a trademark protects against future problems, such as when another entity seeks to register a similar mark. You can monitor new applications for similar trademarks quarterly and, if necessary, file an opposition against applications for identical or similar marks for similar goods or services. This effectively prevents the registration (and use in trade) of competing marks.

Trademark protection extends to Internet domains. If someone registers a domain with a trademarked business name and begins offering competing products or services under it, this constitutes a violation of trademark law. In such a situation, the domain can be recovered through legal proceedings. Before filing a trademark application, I recommend conducting a check on its registrability to ensure that it does not infringe the rights of other marks already registered or used in trade.

4. Brand protection against counterfeits A registered trademark allows you to effectively combat counterfeits. A protection certificate can block competitor offers on marketplaces like Allegro, eBay, or Google, as well as remove fake profiles or applications. Some platforms, such as Amazon (Brand Registry program), only work with registered trademark owners. These are practical tools for brand protection.

5. Brand prestige and financial benefits As mentioned, a registered trademark can be marked with the ® symbol, which indicates that the mark is legally protected. This also signals to consumers that the product is genuine and trustworthy, strengthening the brand's image.

A trademark can also generate revenue. The owner can license the trademark and charge a fee for its use. This is a way to optimize taxation, as the company deducts the fee as an expense, while the individual receives income. A trademark can also be valued and contributed to the company as an in-kind contribution, increasing its assets and tax benefits.

Registering a trademark facilitates entry into new markets and business development. For example, based on a Polish, Irish or EU application or registration, you can file an international application in selected non-EU countries and protect your brand in those territories as well.

Although the digital era and the AI revolution are transforming legal frameworks, one principle remains unchanged: the importance of a strong brand. It constitutes our most valuable asset - one that requires ongoing care and consistent legal protection.

If you are seeking professional assistance with trademark applications, evaluating the registrability and legal safety of your mark, or conducting quarterly monitoring to identify potential risks to existing registrations, we invite you to collaborate with our team.

Legal basis:
1. Article 120 and Article 1321 , Article 164, Article 283 – 2861 , Article 296 paragraph 2 point 3 of the Act of 30 June 2000 - Industrial Property Law (Journal of Laws 2017, item 776).
2. Article 8 of Regulation (EU) 2017/1001 of the European Parliament and of the Council on the European Union trade mark (OJ L 154). 3. Trade Marks Act 1996, Ireland (Act No. 6 of 1996)

Author: Natalia Basałaj, attorney-at-law,
Hansberry Tomkiel Law Firm
natalia.basalaj@hansberrytomkiel.com

Keywords: trademarks; intellectual property, industrial property law, brand protection, strong brands, branding