Speaker 1: Today, we're learning all about trademarks, what trademarks are, common trademark misconceptions, if it's worth you even trademarking your name, and if so, the exact steps you need to take to get a trademark. If that sounds good, let's get right into it. Hey, I'm Karan from Life Accounting, the number one firm for financial education. I need you to do me a favor though. Like this video for me if you want us to create more content about trademarks, and subscribe to the channel for more videos like this. Let me know in the comments if you're going to trademark your name or not. So, what is a trademark? A trademark is a word, slogan, phrase, symbol, or design that identifies and distinguishes the source of one good from another, and they're issued and managed through the U.S. Patent and Trade Office, also called the USPTO. Trademarks are intended to minimize confusion that could happen if two or more businesses have the same symbol, the same slogan, the same logo, or the same name. So, why register a trademark? You're actually not required to register a trademark to have legal protection. As soon as you begin selling your product or service, you become a trademark owner, and can enforce your trademark in court if necessary. So, simply by using your trademark, your name, your logo, your slogan, etc., you establish rights called common law ownership. Which might make you wonder, why do people go through the hassle to register a trademark? Well, the downside to common law ownership, and not registering a trademark, is that it only protects you within your geographical region, which leaves your trademark vulnerable and eligible for use outside your region. If you open a bakery in New York, common law does not stop someone from opening a bakery with the same name, and the same logo, in California. If you want stronger nationwide rights, and the ability to sue someone federally for infringement, you want to register your trademark at the federal level, with the US Patent and Trade Office. Additionally, getting a trademark allows you to defend your brand against counterfeit products, domain squatters, and gives you the freedom to use the registered symbol with your logo. In total, there are four legal reasons, called a filing basis, to register a trademark. And you're required to specify the basis you choose on your application. The two most common are the intent-to-use basis, meaning your business has not started using your trademark yet, maybe you haven't started your business yet, but would like to get the application process started. Note that while you can apply under an intent-to-use basis, your mark will not be registered until you convert the application to one based on the second filing basis, which is use-in-commerce. Use-in-commerce basis, meaning you are currently using the trademark while selling or transporting goods and services. Alright, let's talk about strong vs weak trademarks. There are actually different types of trademarks, and depending on the type, it may be easier to get your trademark approved, or you may be denied completely. So let's explore the different types. First is the generic mark. Generic marks actually do not qualify for a trademark, as they are marks that are words and phrases commonly used when conducting business in that industry. For example, the word water. Water by itself cannot be trademarked, as it is a common noun that should be able to be used by all businesses who sell water. Then you have the descriptive mark. Descriptive marks describe a product or its ingredient, quality, characteristic, function, feature, purpose, or use. An example would be high definition for TVs. In general, descriptive marks do not qualify as a trademark unless it becomes so popular and distinguishable that the word becomes a secondary meaning for the brand. Examples where this has worked is the Sharp brand of televisions. Next is the suggestive mark. Suggestive marks suggest something about the product or service without actually describing the product or the service. Examples include Airbnb or the car company Jaguar. For this reason, suggestive marks generally do qualify for a trademark as they are not common nouns for that industry. Let's go back to Jaguar as an example. A Jaguar suggests speed and sleekness, but most people do not think of a car company when they hear the word Jaguar. Then there's the fanciful mark. Fanciful marks, also known as coin marks, are words or phrases that did not exist before. Because of this, fanciful marks are the easiest type of marks to obtain, and they offer the widest net of protection. Nike or Google are amazing examples of a fanciful mark. Then you have the arbitrary mark. An arbitrary mark is a word or phrase that includes a common phrase, but not one that is associated with an attribute of the brand. Think about the term Apple. Though the word is common, it has nothing to do with computers. Arbitrary marks are also easy to obtain. Then there's a special category and type of mark called the service mark. A service mark is similar to a trademark, but distinguishes businesses that provide services from businesses that provide goods. Many companies, like Apple or Starbucks, will have both a service mark and a trademark as they provide products and services. Now, other trademark types do exist, like a certification mark that shows products and services or goods have met a standard, and collective trademarks that indicate membership in a group or distinguish products and services of members from non-members. Now, let's look at a few unacceptable trademarks. Yep, let's briefly talk about things that are not trademarkable. Wait, is that a word? Let's talk about the things that cannot be trademarked. Once again, generic trademarks. As previously mentioned, generic trademarks are words or phrases that are used commonly when conducting business in that industry. As an example, Ben & Jerry's can't trademark the word ice cream. You also cannot trademark existing trademarks. You're not able to trademark a word or phrase that is already a registered trademark within the same class of products or services. For example, multiple pizza businesses are not able to register the name Domino's. But both Domino's Pizza and Domino's Sugar can trademark the word Domino, as they are not in the same class of goods and services. And lastly, you can't trademark similar unregistered trademarks. Yep, even trademarks not registered are often recognized by the federal government. Once again, the goal of trademarks is to limit confusion, and if another business in your industry or state has the same name, your trademark application can be denied. By the way, if you'd like to learn the right way to form your business, fund your business, and understand the finances of your business, use the 30% off coupon in the description. It's for the Money Smart Startup course, and that coupon code expires soon. Alright, let's talk about the steps to apply for a trademark. Step one is to determine approval eligibility. You're going to want to consider the trademark category you are applying for to determine the likelihood that you will be granted the trademark in the first place. In general, marks that are unique and descriptive have the best chances. The last thing you want to happen is to spend time and money on the application, only to be denied or to not have the protection you hoped for. Step number two is to perform a search. You'll first want to search through the Trademark Electronic Search System, also called the TESS, and review current trademarks to make sure your name or your logo is not already trademarked, or there's not another trademark that exists that is extremely similar to yours. If it is, your application will likely be denied. Now, step number three is to apply for a trademark. Once you are sure a similar trademark is not already registered, it is time for you to apply for one. If using a use-in-commerce basis, the trademark application will have five requirements that must be met. First, the following statement, the mark is in use-in-commerce and was in use-in-commerce as of the application filing date. Secondly, the date of first use of your mark, anywhere on the goods or in connection with the services. You're also going to need the date of first use of your mark in commerce on the goods or in connection with the services. Then you're going to need a specimen or proof for each class showing how you use the mark in commerce with the goods and or services. In the following statement, the specimen was in use-in-commerce at least as early as the application filing date. And lastly, you're going to need verification in an affidavit or signed declaration that the statements you made are true. Now, if you're using the intent to use basis, it is a requirement that the trademark application must include a statement verified with the affidavit or signed declaration that the application has a bona fide intention to use the mark in commerce and had a bona fide intention to use the mark in commerce as of the application filing date. If you'd like a complete breakdown of the entire application process, you can visit the USPTO web address right here. All right, step number four is to check the application status. Once you apply, you are able to check the status of your application by using the trademark status and document retrieval system. It typically takes between six to 16 months for approval, so it is best to check on the status of your application at least every three months. Well, there you have it. How to trademark your business name. If you found this video helpful, do me a favor and hit that like button for me. It helps others to find this video on YouTube and subscribe to the channel for more videos that help you grow your business. I'm Koran from Life Accounting. Until next time.