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Protect your good name with a trademark


By Joseph Anthony

Aspirin. Cellophane. Elevator. Thermos.

Believe it or not, these words once had real value. The words had connotations of worth with the public. They were identified with businesses and products.

But they're now modern-day victims of what attorney Dave Radack calls "genericide."

"Genericide is what happens when a trademark becomes a generic word for the thing that was trademarked," says Radack, an intellectual property lawyer with Eckert Seamans Cherin & Mellott in Pittsburgh. "It's the death of the trademark and its value."

It's not just individual words that can be trademarked. Symbols, phrases, logos, cartoon characters, packaging, Web page characteristics, even sounds and smells can be trademarked. A trademark helps you retain the goodwill that has been built up around your business, and helps prevent consumers from mixing up similar products or services. At least, that's the way it's supposed to work.

But while trademark ownership is determined by who used the "mark" first, you'll still want to register the name, logo, etc., with the United States Patent and Trademark Office as part of protecting your value in the thing. "There's no excuse for not registering your trademark federally," Radack says.

Trademark law can be extraordinarily complicated. For example, lawyers say a business that registers a mark can easily lose a legal battle to a business that first used the mark before the other business registered it. We're not going to try to split legal hairs here.

However, we can provide a few basic principals to help many small businesses get on the path to protecting their "marks." Here are three.

1. Trademarks are like muscles: They get stronger with use. Remember, by being the first to use a trademark, you own it. Frequent use enforces the association of your business with the mark in the public mind. In fact, establishing and using a trademark in one geographic area can give you the right to use it in areas where you're not even yet doing business. "Once you use your trademark in your current commercial zones, the courts are likely to say it is OK for you to use that trademark in those areas where your business would naturally expand," says Troy Groetken, a partner in the Chicago law firm of McAndrews, Held & Malloy. "This is true even if right now you aren't doing any business at all in those natural areas of expansion." This concept can apply to what you're selling as well as where you're selling it. Groetken says that you could use a sneaker company with a "swoosh" symbol to illustrate this principal. "The company might realize the trademark could be used on other clothing, like socks or shirts or headbands," he says. "The courts would allow them to use that trademark, and would preclude others from using it." Of course, Nike has made its swoosh symbol one of the most recognizable trademarks in the world. Any other business trying to use an identical symbol today would have to (among other things) try and make a case that the "swoosh" would not confuse the public about the difference between itself and Nike, or that it won't be using the trademark in an area that infringes on Nike's territory.

2. You may not have to go global to require a global trademark. Major corporations — or anyone doing business globally — will have to be concerned about protecting their trademark not just in the United States, but anywhere they do business. With the Internet, it's more possible than ever to earn money globally. Unfortunately, it's also more possible than ever to get ripped off globally. But Radack says that many small businesses in the U.S. don't have to try to rush out and establish worldwide trademarks. "If you're a GM or a Ford or a Microsoft, then yes, of course you have to do this," he says. "But what I tell my small-business clients is that if you start to sell in foreign countries, then at that point, yes, you do need to register in those countries." One of the biggest problems for small businesses selling in other countries is the relationship with their foreign distributor. "It's not unusual that if you have a distributor in another country and relationship with that distributor goes south, the distributor may register your trademark," Radack says. "The distributor can wind up with the right to your trademark in that country."

3. It's not hard to get started. As of 2004, it costs $335 to apply for a national trademark with the United States Patent and Trademark Office. Lawyers may charge $1,500 to $2,500 or more to handle the process. They point out that the research involved in clearing a trademark and even the process of filling out the trademark forms is not as simple as it may first appear. With what's potentially at stake, a lawyer may be a good investment. You can start learning about the process yourself by going to Patent and Trademark Office Web site. "Little guys, small businesses can go there," Groetken says. "There's a free searchable database to search trademarks, there's information to help you do some basic research and learn more about what a trademark is and what is involved in establishing or protecting it. It doesn't hurt to take the time to check it out and then hire someone."

 
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