Why Trademark Protection Matters For Businesses

A strong brand is one of a business's most valuable assets -- that is why it is crucial that companies safeguard that identity. A trademark can help.

Trademarks legally protect the components that help brand a business including the entity's name, logo, or tagline. Beyond the legal benefits, trademarks are also a practical tool to help companies grow, establish customer trust and secure their place in competitive markets.

"Trademarks do not just protect logos or names, they protect a business's reputation," explains Miralda Ishkhanian, COO of Honcho, a one-stop-shop of business services for startups and small businesses. "A registered trademark signals to the market that your brand is professional and worth safeguarding."

Why Trademarks Are Essential

A registered trademark provides exclusive rights to a brand's name, logo, or tagline, preventing others from using it without authorisation. This protection is vital for stopping confusing and harmful behaviour from competitors. Things like plagiarism and branding imitation have the potential to damage customer relationships and business reputations. Take McDonald's, for example. Without a trademark on its name, golden arches logo and familiar marketing taglines, the well-known multinational fast-food chain could be susceptible to competitors capitalising on the corporation's established reputation but failing to perform at the standards of the chain. This inevitably will drive down customer satisfaction.

IP Australia's report demonstrates the growing importance of trademarks. In 2022, over 80,000 trademark applications were recorded, a 15 percent increase from the previous year. This trend highlights that businesses increasingly consider intellectual property protection critical to their success.

Strengthening Customer Trust

Trademarks do more than provide legal protection, they also strengthen a brand's image in customers' eyes. Displaying the ™ or ® symbol on products or marketing materials shows that a brand is officially recognised, creating an impression of reliability and professionalism. This trust is particularly valuable for startups and small businesses looking to establish themselves in crowded markets.

A 2023 Deloitte study found that 78 percent of customers are more likely to purchase from brands they perceive as trustworthy. Trademarks reinforce this trust by assuring customers that a business is committed to maintaining its brand integrity and quality.

Customers often associate trademarks with established brands, further boosting a company's credibility. For smaller businesses, this perception can help level the playing field when competing against larger firms.

Adding Long-Term Value

As businesses grow, their trademarks become increasingly valuable. Trademarks are not just legal protections but assets that contribute to a company's overall worth. Research from Brand Finance shows that intellectual property, including trademarks, can account for up to 40 percent of a company's total valuation.

Trademarks protect brand identity across borders for businesses planning to expand into new markets. They also make companies more attractive to potential investors or buyers by demonstrating that intellectual property is well-managed.

"Your trademark becomes more valuable as your business grows. It's not just protection, it is an investment in your future success," says Ishkhanian.

Simplifying the Trademark Process

Since its inception in 2008, Honcho has helped over 800,000 Australians start, grow and manage their businesses. The company's list of services ranges from assisting brand-new businesses with registration to guiding owners through the strategy and planning process, implementing innovative technology, securing a strong financial future and executing an effective marketing plan. Ishkhanian said it made sense to not only help businesses reach success but also provide services that help keep them there. To achieve that, Honcho added the navigation of legal services to their list of offerings With services like Honcho's streamlined trademark registration process, the company has become a trusted partner for businesses across Australia looking to safeguard their identities, registering nearly 5,000 trademarks for Australian businesses.

Trademark registration can be complicated, but Honcho has simplified the process for busy business owners. The process begins with a free trademark search where business leaders can check the availability of their desired trademark through a simple online form. Honcho's specialists provide personalised support over the phone for those needing guidance, ensuring that clients remain engaged and fully understand the process.

After identifying a client's needs, Honcho's dedicated trademark registration team takes over the legal and administrative tasks, handling the complexities on behalf of the business. Honcho's strategy, from applying to providing regular progress updates, ensures that business owners can focus on operations while their brand is professionally protected.

Transparent Pricing and Affordable Access

Honcho's trademark registration services are designed to be both affordable and straightforward. Businesses can register their trademarks for $799, which includes a 10-year registration, government statutory fees, GST, and access to bonus services. For businesses requiring additional protection across multiple product or service categories, Honcho offers a discounted rate of $599 per extra class.

Honcho helps small businesses secure their brands without significant financial strain by making registration a tax-deductible expense. This pricing model ensures businesses of all sizes can access professional trademark protection.

Future-Proofing a Brand

Honcho's commitment to simplifying trademark registration reflects a broader trend toward making intellectual property protection more accessible. Honcho enables businesses to secure their brands and look ahead to sustained growth by removing barriers and offering transparent, efficient services.

Ishkhanian aptly states, "A trademark is not just about avoiding problems, it is about helping your business succeed," she said. "For businesses of all sizes, registering a trademark is essential in building a strong, protected, and trusted brand ready for the challenges of today and tomorrow. Honcho will be with those businesses every step of the way."