Trade marks play a crucial role in market competition as they instill confidence in consumers and encourage repeated purchases of the marked goods, thereby strengthening the market position of the trade mark owner against rival manufacturers. With this in mind, we have compiled various functions of a trade mark to provide a few examples of how you can effectively utilize your own trade mark.
Distinctiveness
Trade marks fulfill their distinctive role when they are capable of clearly differentiating a product (including services) in a unique way. For example, a women's purse cannot be referred to simply as a "purse" or "reticule," since these terms are commonly used for all women's purses, not just a specific brand or type. Similarly, a generic purse-shaped design does not serve the distinctive function. The ability to distinguish is crucial for a trademark, and its absence is an absolute basis for refusal, meaning that signs lacking distinctive capacity will not be registered by the authority. In some cases, signs can acquire distinctive capacity through extensive use, like Audi's four rings sign.
Protectiveness
The proprietor of a trade mark has the exclusive right to use and to explicitly authorise the use of the trade mark. The proprietor may also seek remedy against unauthorised use and may file petitions with the competent court for various sanctions (e. g. destruction of the infringing products).
Competitiveness
Positive consumer experiences with a product can lead to brand recall and preference. Even if your product is priced higher than competing options, consumers are likely to choose it over others if they have had positive experiences. For example, when given the choice between Sony and Junoszty video cameras, conscious consumers are more likely to prefer Sony due to their previous positive experiences with the brand.
Advertisement
Trade marks play a significant role in marketing as they are often utilized by advertisements to leverage their marketing potential. Some TV channels exclusively broadcast advertisements featuring registered or pending trade marks. Additionally, in certain countries, the symbol ® is used to denote registered trade marks, serving an advertising and brand emphasis purpose.
Quality indication
When seeking a high-quality vehicle, you can identify your options by considering trade marks such as Jaguar, Mercedes, Audi, BMW, Lexus, and more. Conversely, if you are in search of lower-quality cars, brands like Skoda, Lada, Dacia, etc., would be preferable. It is evident that consumers expect varying levels of quality when shopping at a Lacoste store compared to Poundstretcher. Trade marks serve as indicators of product quality.
Guaranty
Guaranteeing
Trade marks also serve as guarantees that strongly influence consumer behavior. When purchasing a product with a trade mark, consumers trust that they will be able to buy the same quality product in the future. License agreements often include provisions that allow the licensor to revoke the licensee's authorization to use the trade mark if certain quality requirements are not met. For example, when buying Pilsner Urquell in any country, consumers can be confident that the beverage will possess consistent good quality and a distinctive bitter taste. The indication of quality and the guarantee function of trade marks make it crucial for consumers to associate each product with its respective manufacturer or related company.