Brand equity is the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of. Organizations establish brand equity by creating positive experiences that entice consumers to continue purchasing from them over competitors who make similar products. Organizations that leverage the power of branding often earn more money than competitors, while spending less – whether on production, advertising, or elsewhere. When consumers believe in the values put forth by a brand and the quality of their products, they will pay higher prices to purchase from that brand.
Brands must be inventive, improve their product or service, and protect themselves due to the market’s ongoing rise in competition. To succeed in a cutthroat market, a company needs to build brand recognition and value. Intellectual property can be a useful asset to use at every stage in the life of your firm, from beginning to maturity. Leveraging intellectual property assets successfully can help an organization build and sustain effective product strategies over the long term. This is achieved by way of protecting intellectual property rights. If Indian firms want their investors to invest in businesses, they must ensure that their hard-earned IP is protected.
Brand owners need to be aware that once a product is considered “attractive,” others will try to duplicate it. Additionally, there is a higher chance of infringement. MakeMyTrip’s move in December of last year served as an example of how far businesses would go to save their reputations. Make my trip has sued 5 companies named MakemyYatra, Make- my journey, pick my trip, and superb my trip in Delhi HC, accusing them of using brand names deceptively similar to their own trademark. According to a MakeMyTrip representative, “Businesses are recognized by their brand identities and that’s how customers, suppliers, and the entire ecosystem identifies that firm. A strong brand is valuable, so it’s critical for MakeMyTrip to safeguard its brand name since brand or trademark infringement can lead to customer confusion or misdirection and cause them to mistake an entity for MakeMyTrip”. At the end of the day, a strong brand is a foundation for creating long-lasting and profitable assets hence making the intellectual property in “brands” the most important property of the Business. It is essential in today’s time to evaluate a company’s worldwide market presence as well as its future objectives when filing for registration of IP rights over a brand. Beverage giant Starbucks dragged homegrown rival Sardarbuksh to court for operating a brand that sounds very similar to their brand name. The Delhi High Court ruled in favour of Starbucks on August 1. The domestic brand’s creator, Sanmeet Singh Kalra, claimed that because the name rhymed with that of the multinational, his company was forced to modify it to Sardarji-Bakhsh. They will keep their turban-wearing man as their trademark, he added. Sardarji-Bakhsh has been rebranded in about 30 Sardarbuksh locations. However, there has been peaceful coexistence between Burger King and Burger Singh. In the same area, there are numerous pizza restaurants with identical names. Legal professionals claim that this is the case since words like “burger” are generic and cannot be linked to a specific company. Thus, a strong brand is a cornerstone for building long-term and lucrative assets, making intellectual property in “brands” the most valuable business asset.
IP rights registration and brand management are necessary for the development of a strong brand. Patents, Trademarks, copyrights, and trade dresses are all excellent ways to increase the potential value of a brand. Furthermore, timely and resolute enforcement of all IP rights by pursuing legal action against any party attempting to exploit or misuse IP to acquire an unfair advantage. After all, the courts look at how diligent a proprietor is with his or her intellectual property, and a brand owner who is actively defending its brands and not allowing others to use them without permission will have a better chance of succeeding against future infringers. Finally, companies creating their brands and general reputation should be aware of how their brands are promoted and presented in the market in comparison to their competitors. The Delhi High Court in 2020 granted an interim injunction preventing an e-rickshaw manufacturer from using the mark “DMW” in a trademark infringement case brought by BMW.
The potential damage that imitations or other intellectual property violations could do to the brand will at least be reduced with effective administration and monitoring of those rights. A brand’s competitive advantage can be more effectively harnessed with successful brand management and intellectual property rights. The Delhi High Court has issued a permanent injunction prohibiting a cake business in Bengaluru from using the names “Facebake,” “Facecake,” or any other Facebook trademarks for its goods and services. The order came about as a result of a lawsuit brought by Facebook’s owner. The typography and blue-on-white colour scheme popularised by the social media site were also used by “Facebake.”
Brands must fiercely guard their unique identity as it is crucial for protecting market share. A scaling company can use its intellectual property to build a sustainable competitive advantage. Expanding product lines by leveraging existing intellectual property is a great way to boost a scaling company as well. Treating intellectual property rights as building blocks is a natural way to facilitate company growth and product line expansion. Once an organization reaches maturity, intellectual property can be leveraged strategically to contain costs and drive more revenue growth. The organization can divest wasting assets and create new revenue streams by “out licensing” some intellectual property. The company can also flexibly swap investment for more fruitful offerings and pair together product offerings which perform well together. This level of analysis can help control and optimize a mature organization’s product and when leveraged effectively, intellectual property can be a key value and growth driver at any stage in an organization’s life.
A dishonest technique known as trademark bullying involves demanding trademark rights based on flimsy justifications against much smaller businesses while being fully aware of the opponent’s financial resources. Non-practicing entities (NPEs), also known as “patent trolls,” are holding companies that assemble patents without intending to use them in technological applications. These trolls gather legal rights with the sole intent of making money via settlements. Every business is vulnerable to intellectual property bullying, especially those located near big businesses or NPEs. These legal battles are expensive for any business, whether they are fought in bad faith or not.
Trademark bullying and Patent trolling are some serious bullies to your Brand. Not just creating Intellectual property rights but also protecting your IP is necessary. A thorough trademark search and patent search are very crucial to prevent bullies from giant companies. We at Artemis Law Associates, promise to shield your Intellectual property and ace your brand.
Brand protection: Why it’s important and how to do it correctly
