A trademark is a distinctive symbol, logo, name or word that identifies a firm or line of business. It is considered to be one of the most significant assets for any business entity. By registering the trademark, a company’s products and services are easily recognised by the general public. Even though trademark registration is not mandatory, having a registered trademark has a number of advantages. Registering your trademark will protect your brand from infringement and unauthorised use by third parties, and therefore obtaining a trademark registration is always preferred for all kinds of businesses to avoid any future problems.
In India, the e-commerce industry and platforms have expanded significantly in recent years. The small local retailers in India have developed and grown their operations tremendously on e-commerce platforms. In order to offer their products or services to customers directly online, several e-commerce businesses have registered on e-commerce platforms such as Flipkart and Amazon. Every brand, its products, and its varieties are now available to the entire world due to the sudden surge in internet usage. Thus, having a distinctive trademark for goods is important for an e-commerce retailer or business. This will help the consumers to easily recognise the items of an e-commerce seller or firm from other identical or counterfeit products.
When consumers remember the trademark associated with a product or service, they tend to look for it and make repeated purchases. This will gradually result in the increase of the reputation and goodwill of the company’s or seller’s goods. Products connected with distinctive trademarks will be recognized by consumers worldwide.
There are no temporal or geographic restrictions in the e-commerce world. Consumers give the least priority to proximity and convenience when it comes to the online marketplace. They can find the exact same product they’re seeking, supplied by a variety of suppliers, and select the one that most appeals to them. Due to the enormous number of product varieties available in the market, brands have a bigger impact on consumers’ purchase decisions. This brings us to another important aspect, i.e., consumer trust. Since online platforms are intangible, even though there is a wide range of options for consumers, some of them will be of lower quality. Having a trademark will help create a sense of trust between consumers as it ensures a certain quality and protects the consumers from getting into scams.
Benefits of registering a trademark in e-commerce platforms
It is not compulsory for an online seller or company to register a trademark. However, registering your trademark is preferred since it safeguards it from unauthorised use and offers several advantages to trademark owners.
Under trademark law, you will receive priority if your establishment has used the trademark before any of your competitors. It means that if you have sufficient evidence to prove that you are the prior user of a trademark, then you will have the edge over another competitor or a third party. Therefore, it is always recommended to start using the trademark as soon as the commencement of the business and also to get registration in order to acquire the proof for prior use.
Right to transfer
After getting your trademark registered, the trademark owner has the option to assign their trademark rights to a third party. The ability to transfer a trademark helps the business to draw in prospective customers and investors. Furthermore, this will help the company or business to attract potential investors as well.
Protection of the Business
By obtaining a trademark for the goods and services of the entity, such products that are trademarked are given ample protection from being misused. Trademark protects the logo and registered name of the product from illegal and unauthorised use by third parties. It helps e-commerce entities from infringement of their rights provided through the registration of trademarks.
Providing Safety to the Value of the Brand
Registering of trademarks by e-commerce companies and sellers shall provide ample protection to the products of the company both at the national and international levels. Trademark provides the necessary recognition and value for the brand and provides safety for unauthorised use and resultant injury to the brand’s reputation.
Benefits of e-commerce marketplace
Renowned e-commerce giants such as Flipkart, Amazon etc., provide e-commerce sellers with a chance to list the registration of the trademark for their product on their platform. There are even Brand Registry programs provided by Amazon etc. This particular registry aids in increased marketing avenues and availability of proper analytical data for the sellers on such platforms or the entities that are part of this Registry.
Aiding in Trademark Search
All the entities that register their trademark and submit an application for the same initially conduct a thorough trademark search on the website of the Indian Trademarks. This is a wide search that will aid in the avoidance of huge costs in the later stages. The already registered trademarks that are similar to the trademark that is about to be registered shall be seen on the website, thus avoiding the registration of similar trademarks, which can cause confusion in the minds of the consumer and its unauthorised misuse.
Trademarks are very crucial for e-commerce because they help retailers to establish their identity in the e-commerce platforms. This ensures that a brand’s reputation won’t be damaged by competing businesses or a third party using its name, logo, or tagline. A successful brand connection with the consumers or even just name recognition increases e-commerce sales. In a market with so many alternatives for customers to select from, strong brand recognition may frequently make all the difference. To gain from trademarks, every company should make sure to register them as soon as possible.
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