The trademark registration process for start-ups closely mirrors that of other entities seeking trademark registration online. Notably, the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce has instituted a 50% concession in the statutory fee essential for online trademark registration. This concession aims to incentivise and promote the online trademark registration process for start-ups. In this blog, we shall see the trademark registration process for start-ups.
Benefits of Trademark Registration for Start-ups in India
Before going into the trademark registration process for start-ups, let us understand its benefits:
1. 50% Rebate for Start-ups
Start-ups applying for a trademark application as part of the Trademark Registration process for start-ups in India enjoy a significant advantage, a 50% rebate. This reduction in fees provides a financial incentive for start-ups to protect their intellectual property through trademark registration.
2. Reduced Start-up Cost
The initial cost for trademark registration for a regular company is Rs. 9000. However, for start-ups, there is a substantial reduction, with the cost being only Rs. 4500. This cost differential serves as a favourable condition for start-ups to embark on the trademark registration journey without a substantial financial burden.
3. Government-Borne Facilitation Cost
An additional benefit for start-ups is that the government bears the facilitation cost of the applicant during the trademark registration process. This support further eases the financial responsibilities for start-ups seeking to protect their trademarks and start their journey with more capital for its expenses.
4. Low-Cost Patent Filing
In addition to trademark registration, start-ups in India can benefit from low-cost patent filing. This facilitates the protection of inventions and innovations, offering start-ups an affordable means to secure their intellectual property rights. Patent filing helps in protecting the new ideas of start-ups from infringers,
These benefits collectively contribute to creating a favourable environment for start-ups in India, encouraging them to safeguard their intellectual assets through trademark registration and low-cost patent filing initiatives.
Importance of Trademark for Start-ups
The importance of Trademark registration for start-ups can be understood through the following:
1. Legal Safeguards
Trademarks assume a crucial role in furnishing legal protection for start-ups, functioning as a safeguard for the company’s intellectual property. Should there be any unauthorised use of a trademark, the start-up holds the legal entitlement to initiate legal proceedings against the infringing party. This legal recourse serves as a fundamental measure to ensure the safeguarding of the start-up’s brand identity and its associated assets.
2. Increased Firm Profitability
The visual appeal of a brand, often represented by a distinctive trademark, contributes significantly to a start-up’s profitability. Consumers are drawn to products or services with attractive branding elements such as logos or coloured lettering. In the digital age, a professional logo design holds paramount importance, influencing purchasing decisions and enhancing the overall attractiveness of the brand.
3. Increased Brand Image and Goodwill
Trademarks contribute to building a positive brand image and goodwill for start-ups. Through a distinctive logo, design, or text, start-ups can highlight the unique traits of their products or services. This, in turn, enhances product popularity. Additionally, start-ups can leverage trademarks to diversify their offerings, increase their value, and explore opportunities in areas such as franchising through licencing.
4. Provides a Sense of Autonomy
Trademarks offer start-ups a sense of autonomy and act as a protective shield. As a start-up establishes itself in the market, maintaining a positive reputation becomes crucial. By trademarking the company name or brand, start-ups create a protective barrier that cushions against potential challenges in the business sector. Moreover, a trademark signals to others, both directly and indirectly that the start-up is guided by genuine thought and innovation, contributing to its credibility and integrity in the marketplace.
Trademark Registration Process for Start-ups
The trademark registration process for start-ups is as mentioned below:
1. Choosing a Category for Your Goods
When initiating the trademark registration process for start-ups, the first crucial step involves selecting an appropriate category for your goods. With a list of 45 options, each assigned to different types of goods and services, it is essential to determine the most relevant class for your product.
2. Process of Preparing and Documenting an application
To proceed with trademark registration process for start-ups, completion of Form TM-I is mandatory. Submission of this form, accompanied by specific fees and documentation, is required. Within two days of submission, the permanent allotment number provided by the register must be included in the form. Essential documents for filing include ID evidence, Power of Attorney, Board Resolution, Address Proof, Name of the Applicant, Business Type, and others.
3. Submitting the Form to the Trademark Registry
Following the preparation and documentation stage, the next step is submitting the Form TM-I and relevant documents to the Trademark Registry. The Presiding Officer of the Register Office examines the form and documents to ensure their accuracy and that the trademark is distinctive. Alternatively, the form can be filed online through the official trademark registry website at http://www.ipindia.gov.in/.
4. The Trademark Registrar Conducts an Inspection
After submission, the Trademark Registrar conducts an inspection of the TM-I form and associated documents. If any similarities or technical issues with the trademark are identified, a show-cause is sent within 30 days. If deemed unsatisfactory, a hearing is scheduled to assess the merits of the application.
5. Publication in a Journal
Upon approval by the verifying officer, the trademark registration process for start-ups progresses to the publication stage in the Trademark Journal. In case of objections raised by third parties, a response must be provided within 90 days. Subsequently, a hearing is conducted, and the registrar has the discretion to either reject or accept the trademark based on the proceedings.
Reasons for Rejection of Trademark Registration
Mentioned below are some reasons for rejection of trademark registration:
1. Incorrect or Incomplete Information in the Form
If the submitted form for trademark registration contains inaccurate names, details, or incomplete information, the Trademark Registering authority issues a notice within 30 days. This emphasises the importance of providing accurate and complete information during the application process to avoid delays or rejection.
2. Similarity to Other Registered Trademarks
When the trademark being proposed is deemed similar to an existing registered trademark, the verifying officer has grounds to reject the application. In such cases, the applicant is required to respond promptly to the objection by drafting a comprehensive response that addresses the concerns raised. Following the response, the corrected or clarified form should be resubmitted for reconsideration.
It is essential for applicants to be vigilant about the accuracy of their submissions and to be prepared to address any objections related to similarity with existing trademarks. Timely responses and corrections are critical to navigating the trademark registration process successfully.
Final Thoughts
The Trademark Registration Process for start-ups is a vital journey, offering legal safeguards, increased profitability, and enhanced brand image. With a 50% rebate, reduced start-up costs, and government support, it becomes an accessible avenue for protecting intellectual property. The process involves careful categorisation, accurate documentation, and submission to the Trademark Registry. Despite its benefits, start-ups may face rejection due to incorrect information or similarities with existing trademarks. Vigilance in the application process and prompt response to objections are crucial. Overall, trademark registration empowers start-ups, providing autonomy and a protective framework, reinforcing their credibility and contributing to long-term success in the competitive business sector.
