By Bhanita Das, Flywork.io Team, Flywork.io.
The significance of a Brand name and a trademark has increased manifolds in the current highly competitive markets, nationally and internationally. Let’s look at a comparative overview of both.
In our day-to-day life we often hear the term Trademark and Brand, both seem to be similar but they have their significant distinction. Brand and Trademark both are valuable assets of a company.
MEANING OF BRAND
Brand is a name that is basically given by the manufacturer to the product or services they produce from its own of their specific company. For example: Puma, Biba, Apple, ZARA etc. It helps to create its identity and helps to make a strong market among the people. One of the best examples is the COLGATE, people are so used to this brand that they forgot that Colgate is a brand instead of toothpaste; often heard people saying other brand toothpaste also to be Colgate.
MEANING OF TRADEMARK
Trademark is basically a symbol or word which is legally registered to use as a representative of a company or product. In simple words, we can say it is a symbol that denotes a specific product and also legally differentiates from other products. The symbol should be unique in nature. It is a type of intellectual property consisting of design, signs, words, or expressions.
Both the term sounds to be similar in nature but there are some differentiations between them. So let’s have a look at it.
SIGNIFICANCE OF BRAND
Brand helps the buyer to identify the product which they like and dislike.
Brand helps to identify the marketer as well as helps in reducing the time needed for purchasing the product and services.
For a seller, branding helps to reduce price comparison and helps the firm to introduce a new product.
It helps to facilitate promotion of the goods and services.
SIGNIFICANCE OF TRADEMARK
Trademark is important for a startup for its security, by trademarking a company can secure its product and services being used by another company.
Trademark is permanent which needs to be renewed periodically.
Trademark is a company’s greatest asset that acts as a catalyst for increasing the value of a startup.
DIFFERENCE BETWEEN TRADEMARK & BRAND
1. A legal brand is not a legal name of a company, it is just a name selected by the company but a trademark is legally bound to represent a business by its services or goods.
2. Not all brands are trademarks but all trademarks are brands.
3. A brand consists of several elements which include image, character identity, personality, essence, culture reputation; and these combines to define the value of a brand whereas a trademark is used to protect a various aspect of a brand such as Brand name, Signatures, Color Schemes, Packaging, Unique labeling etc.
4. Brand name is associated with culture, personality, vision, and reputation whereas a trademark is associated with the description, packaging, color schemes.
5. Brand can only be protected to state-level but a trademark protects the company’s product identity by establishing that the mark has not been used before.
6. Brand can be created or named by any manufacturer but a trademark can only be used after it is registered.
7. Brand can be used by different producers & sellers but trademarks can only be used by the producer who has got it registered.
8. The fundamental concept of the brand is that it is the easy way to remember the product, whereas the trademark is a source of origin of any product or service.
Thus, the above-mentioned terms i.e. Brand and Trademark both are valuable assets of a company. Although both the terms sometimes act as a synonym yet they are very different from each other. A brand is a name that relates to products and services offered by a company whereas a Trademark is a legally registered trade or brand name or logo or slogan that basically identifies a company to its product or services. A good brand helps in suggesting the product benefits and its usage as well as the trademark gives us the right to use our business name nationwide in connection and also allows us to file a suit in case of a dispute.