Many entrepreneurs or established business owners often make a very common mistake, frequently confusing the registration of their company name with the Chamber of Commerce with the protection of their distinctive signs or trademarks before the Superintendency of Industry and Commerce, procedures that are completely different and bring with them very different benefits and responsibilities for the business owner.
First, it is important to note that the company name is the designation by which a company or corporation is legally known, which is recorded in its certificate of existence. In contrast, a trademark is any sign capable of distinguishing products or services in the market; these can be word marks, figurative marks, composite marks, or even three-dimensional marks.
In light of the foregoing, any business owner wishing to register their trademark should be aware of the following benefits that this process entails:
1. Restriction of use by third parties
The trademark is one of, if not the most important intangible asset of your company, and when registered, it prevents third parties from marketing the same or similar products or services. Furthermore, it allows the business owner to build trust and gain certainty with their customers, building a loyal customer base and brand loyalty.
2. Differentiating factor
Consumers tend to purchase a product because they recognize its brand. This is why a registered trademark allows your customers to remember and differentiate your product from an identical or similar one offered by another business owner. Moreover, when registered, the trademark is the perfect instrument to project your company's image, reputation, and commercial strategy.
3. Generation of extra income
By registering your trademark, the company will have the ability to grant licenses for its use and exploitation; these licenses are major sources of income, and they also allow your brand and products to become known to more people.