ADVANTAGE & IMPORTANCE OF TRADEMARK IN NIGERIA

ADVANTAGE & IMPORTANCE OF TRADEMARK IN NIGERIA

Trademark is a form of intellectual property that acts as a means of identifying a business. It can be a mark, word(s), phrases, symbol or any combination thereof that are original, used by a business owner to represent or identify any product or services offered. It is simply employed in the field of trading to distinguish and build a reputation for one’s product from that of the competition.

For a trademark to be registered, it must contain at least the name of the company, individual or firm represented in a unique form; or the signature of the applicant for the registration or some predecessor in his business; or an invented word or invented words; or word or words having no direct reference to the character or quality of the goods or services; or any distinctive mark.

Once the trade marks are registered, you will spot the symbol ™ or ®, or the word “Registered” being used on such business’ goods and services. The trademark owner can either be an individual, business organization, or any legal entity and the trademark may be located on a package, a label, a voucher, or on the product itself. For the sake of corporate identity, trademarks are sometimes displayed on company buildings.

ADVANTAGES

THE RIGHT TO EXCLUSIVITY

When a trademark is registered in relation to a specific good or service, it grants the owner the exclusive right to use the mark in relation to that good or service to distinguish one's brand from that of other brands in the commercial market, and the exclusive right is deemed infringed when a third party who is not the owner uses it without permission or uses a mark that is confusingly similar to the owner's mark.

This exclusive right is guaranteed by Section 5 of the Act, which states, "Subject to the provisions of this section, the registration (whether before or after the commencement of this Act) of a person in Part A of the register as proprietor of a trademark (other than a certification trade mark) in respect of any goods shall if valid, be enforceable."

The law goes on to say that "Without prejudice to the generality of the right to use a trademark conferred by such registration as aforesaid, that right shall be deemed to be infringed by any person who, not being the proprietor of the trademark or a registered user thereof, uses it by way of omission.

GENERATION OF REVENUE

when a brand builds reputation overtime, registration is paramount to secure investors and franchise opportunities who would want to leverage on such brand reputation and customer base to generate revenue. Registering a trademark grants one exclusive right to license the same for use by another in setting up the business thereby expanding said business. It brings about outreach and exposure for the brand.

SECURITY

A registered trade mark can be used as security to secure loan facilities much the same way as immovable property can be bonded. This isn’t practised yet in Nigeria but it is a recognized practice for individuals and companies trading in Western countries.

RIGHT TO SEEK RELIEFS UPON INFRINGEMENT

The certificate of registration for your business’ trademark is strong evidence of your ownership and your use of a trademark.

If any one infringes or uses a logo / name similar to yours, which is capable of confusing your clients, you can seek an injunction from the court to restrain further use and also claim for monetary compensation You will however have to prove the damages or loss you suffered as a result of the infringement. This could either be likelihood of confusion, loss of sales or damage to your business reputation.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080