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TRADEMARKS--THE
KEY TO PRESERVING THE GOODWILL OF YOUR BUSINESS
A trademark
is any word, name, symbol, figure, picture, letter, form, logo,
slogan, device, or combination of these that you use to identify your
goods and distinguish them from competing goods. A service mark
identifies and distinguishes services, while a trade name identifies
and distinguishes a business name. Because the same rules govern trademarks,
service marks, and trade names, this article will refer to all three
as trademarks or marks.
Why are trademarks
important?
Goodwill--the value of the new work and referrals generated
from existing clients--is crucial to the survival and growth of almost
every business. If you use a trademark to identify your business,
your services, or your products, your trademark may be the key to
promoting and preserving your goodwill. Once you have a valid trademark,
no one else may use it to sell similar goods or services within your
market area. If your trademark becomes extremely well known, you may
be able to prevent anyone else from using it anywhere or for any purpose.
Indeed, a trademark may be your most important business asset.
How do I acquire
a trademark?
You acquire a trademark simply by using it. However, because trademarks
may be quite valuable, you should take great care in selecting one.
Before you begin using your trademark, make sure that no one else
can infringe on it. Make sure also that your proposed trademark will
not infringe on someone else's trademark.
What is trademark
infringement?
Trademark infringement occurs when trademarks used by different businesses
are so similar that potential customers might mistakenly believe that
the goods or services of one business are provided by another business.
Infringement can occur even if the two trademarks are not identical
or even if the two businesses are not competitors. The use of similar
packaging or the similar appearances of business establishments can
also constitute trademark infringement (for example, no business besides
McDonald's could use the "golden arches").
Infringement can
occur even if no customer was actually confused. The mere likelihood
of confusion can constitute infringement. If you use a trademark that
infringes on another, you may be liable for damages, including the
profits you earned while using the trademark.
How can I prevent
infringement on my trademark?
A trademark gives you at least a partial monopoly on the right to
use the words or symbols that comprise the mark. Consequently, certain
limitations apply to the types of words and symbols you can use in
an enforceable trademark.
For example, your
trademark should not contain only words or symbols that are already
in common use. Aspirin, for example, is a word in common use.
A triangle is an example of a common symbol.
In addition, your
trademark should not contain only words or symbols that are overly
descriptive of your goods or services. Overly descriptive words include
ingredients, generic characteristics, and misspelled words that sound
the same as the generic name for your product. For example, if you
sell pizza under the trademark "Peetza," you may be unable to prevent
other pizza sellers from using that trademark. "Peetza" is overly
descriptive because it sounds the same as the product's generic name.
A different result might occur if you were selling software named
"Peetza" because the mark does not sound the same as the product's
generic name.
To best protect
against infringement, your trademark should be arbitrary and fanciful
(such as the gasoline company EXXON). The next best protection comes
from suggestive trademarks (such as Cortaid, a cortisone creme). You
can further protect against infringement by displaying your trademark
with a logo, distinctive typeface, or unique style.
How can I avoid
infringing on someone else's trademark?
You can determine whether your proposed trademark might infringe on
an existing one by conducting a trademark search. You are best assured
of a proper search when you hire an attorney experienced in conducting
such searches. If your budget only permits a lesser degree of assurance,
personnel at the Harold Washington Library (in downtown Chicago) can
help you conduct a search for a nominal cost.
Should I register
my trademark?
You acquire the exclusive right to use your trademark simply by using
it. Registration of your trademark will not give you any additional
rights against infringement.
However, registration
may prevent someone else's unintentional infringement of your trademark.
If your mark is registered, other business owners can locate it through
a trademark search and will presumably refrain from using it. If someone
does infringe on your trademark, registration may enable you to more
easily prove that you were the prior user.
How do I register
my trademark?
After you have used your trademark within Illinois, you may register
by written application with the Illinois Secretary of State (ISS).
After you have used your trademark in another state (or if you intend
to do so within six months), you may register it with the United States
Patent and Trademark Office (PTO).
The ISS and the
PTO will register your trademark only after they are satisfied that
it will not infringe on an already registered mark. To best assure
acceptance of your trademark, you should hire an experienced attorney
to prepare and file your application. If budgetary restraints prevent
you from hiring an attorney, you can obtain registration forms and
explanatory information from the ISS and the Harold Washington Library.
What should
I do if someone infringes on my trademark?
As soon as you are aware of an infringement, you should demand that
the infringer stop. Your demand may be taken more seriously if it
comes from your attorney. If you knowingly fail to prevent infringement
on your trademark, you may be deemed to have abandoned it. Once you
abandon your trademark, someone else may claim the exclusive right
to use it, or it may pass into common usage. This happened with the
term aspirin. It once was a trademark, but it became a common
generic word after its owner failed to prevent infringement. What
a headache!
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