Almost every business has a name, logo, or slogan that makes it unique – elements that serve as a trademark. A trademark can exist in two ways: a registered trademark and an unregistered trademark. Many entrepreneurs and business owners ask themselves – is it worth registering the mark officially, or can we settle for actual use of the mark? In this article, we will examine the key differences between the two situations, the legal protections each provides, and the practical implications of the choice.
What is a registered trademark?
A registered trademark is a mark – a name, logo, symbol, color, sound, or combination thereof – that has been registered with the trademark office of a particular country. Registration grants the owner of the mark the exclusive right to use it in relation to the goods or services specified in the application, and allows him to legally enforce that right against other parties. A registered mark is marked with the ® symbol, and has clear legal validity and can be renewed periodically as prescribed by law.
What is an unregistered trademark?
An unregistered mark is a mark that a business actually uses, but has not been officially registered. In many cases, the business owner will mark it with a ™ – a mark indicating that they consider the mark their own, but it is not registered. Legal protection in this case is limited and relies mainly on the laws of wealth creation, commercial torts (such as plagiarism), and recognition of the reputation that the mark has actually acquired. In other words, the rights are not “known in advance” – they must be proven in each case on its own merits.
The main differences in rights and protections
Ownership and proof of right
- In a registered trademark: Ownership of a mark is proven by virtue of registration. There is no need to show actual use or existing reputation – the mere registration establishes the right.
- In an unregistered mark: There is no official ownership. To enforce the right, it must be proven that the mark is associated with the business and has a recognized reputation.
Legal enforcement
- Registered mark: Allows you to file a claim for trademark infringement. The procedure is simpler – there is no need to prove that the mark is known.
- Unregistered mark: A lawsuit must be filed on the grounds of plagiarism or a similar wrong. It is required to prove reputation, deception and harm. This is a more complex, expensive and lengthy procedure.
Protection in other countries
- Registered mark: You can also apply for registration in other countries (for example, through the Madrid system). The protection is territorial and based on the registration.
- Unregistered mark: Protection exists, if at all, only in countries that recognize rights of use (common law), and only in the area where there is actual reputation.
Advantages and disadvantages
Registered trademark
Advantages:
- Strong and clear legal protection
- Lower burden of proof in case of violation
- Possibility of simple and quick enforcement
- Property that can be sold or registered with a license
- Upgrading the business's image in the eyes of investors
Disadvantages:
- Registration process that requires time and expense
- Not every sign is registrable (for example: a generic word)
- Requires renewal every 10 years and actual use
Unregistered trademark
Advantages:
- Does not require a registration process or payment of a fee
- Can be used immediately
Disadvantages:
- It is difficult to prove rights.
- There is no clear defense.
- Expensive and complicated enforcement
Uses and business status
Registering a trademark is considered a necessary step when building a brand. It provides security for long-term use, the ability to prevent imitations, and conveys seriousness to customers, partners, and investors.
On the other hand, there are situations in which it makes sense to postpone registration: a project in the pilot stages, a temporary brand, or when there is still no certainty about the final name.
When should you register a trademark?
- When the brand name is stable and not expected to change soon
- When there is a plan for expansion or reaching out to additional markets
- When there is a risk of imitation by competitors
- When a capital raising process or sale of the business is planned
- When you want to convey professionalism and confidence to the outside world
Summary
An unregistered trademark may be sufficient in some cases, but it does not provide clear and stable legal protection. In contrast, a registered trademark gives its owner real legal power, proprietary validity and broad enforcement options.
In most cases, if you are building a brand that is important to your business, registering a trademark is a smart and recommended step.
