Good naming and good marketing tactics weren't invented yesterday. Consider the story of John K. Hogg of Frederick, Maryland, a manufacturer of soap. Hogg had a concept for a special soap, so he applied for a trademark. He named his product Star Soap, and a star symbol was to be "printed, stamped or impressed upon the outside of each piece of soap," as he wrote in his application. Yes, he had real naming and marketing skills:

  • A simple, one-syllable name

  • A strong word to convey both his aspirations and the quality of his product

  • A physical symbol built right into the name

And the rest of the story? Hogg was the recipient of Trademark No. 9, which was granted on October 25, 1870, long before trademarks for Quaker (first registered in 1895); Pepsi-Cola (first registered in 1896) and Mercedes (first registered in 1900).

Why else do you need to know the trademarks you may be working with for your clients? Read this issue of Promotional Consultant Today.

What is a trademark? A trademark is defined by the United States Patent and Trademark Office as any word, slogan, shape, color, scent, taste or any combination of these thereof used in commerce to identify and distinguish the goods of one manufacturer or seller from those of another and to indicate the source of the goods. A trademark is a mark that is applied to product. For example, if you sell footwear, then the mark you apply to the shoe (e.g. Nike) is a trademark.

A service mark, on the other hand, is different. If your bank is offering a checking account service called Smart Checking, it could be marked with a service mark rather that a trademark, because it is used in the delivery of services rather than being applied to a physical product.

Why do we need trademarks? The main function of a trademark is to enable consumers to identify a product or service of a particular company so as to distinguish it from other identical or similar products and services provided by competitors. You know what it's like when you walk down the aisles of a grocery store. Somehow you find the product you want out of the hundreds on the shelf. That's the power of a trademark.

By enabling companies to differentiate themselves and their products from those of the competition, trademarks play a powerful role in branding and marketing strategies. The image and reputation of a company create trust, which is the basis for establishing a loyal clientele and enhancing a company's good will. Consumers often develop an emotional attachment to certain trademarks based on a set of desired qualities or features embodied in the products or services bearing such marks.

What's the value of trademarks? A carefully selected and nurtured trademark is a valuable business asset for most companies. For some, it may be the most valuable asset they own. Estimates of the value of some of the world's most famous trademarks such as Coca-Cola or IBM exceed $70 billion each. While most businesses realize the importance of using trademarks to differentiate their products or services from those of their competitors, not all realize the importance of protecting them through registration.

Registration, under relevant U.S. trademark law, gives your company the exclusive right to prevent others from marketing identical or similar products or services under the same or a confusingly similar mark. Without trademark registration, your investments in marketing may become wasteful as rival companies may use the same or a confusingly similar trademark for identical or similar products or services. If a competitor adopts a similar or identical trademark, customers could be misled into buying the competitor's product or service thinking it emanates from your company. This could not only decrease your company's profits and confuse your customers, but may also damage the reputation and image of your company, particularly if the rival product or service is of inferior quality.

Trademark protection can be obtained through registration and, in some cases, through use. Even where trademarks can be protected through use, you are well advised to register the trademark by filing the appropriate application. Registering a trademark will provide stronger protection, particularly in cases of conflict with an identical or confusingly similar mark.

Source: Andrew A. Gonzalez, Esq. is an experienced attorney with over 25 years in practice. He focuses his attention on business and intellectual property matters. He provides sophisticated services to commercial clients who need to effectively compete in a business environment and personal counseling to individual clients who require the services of a seasoned and caring attorney.