What does a trademark provide?

Companies register trademarks to stand out in the market among competitors. But uniqueness is not the only advantage. And not the main one. The main thing is to protect your brand from copying. Imitators who use your name can steal customers and ruin your reputation by selling low-quality counterfeit goods under your name.

With a trademark, you essentially get a legal monopoly – you prohibit others from working not only under identical names, but even under names that are similar in sound or spelling in your niche.

But that’s not all.

The non-obvious benefits of a trademark

A trademark is a blue ocean of opportunities for the owner.

• Compensation from violators.

Having a trademark registration certificate in hand, you receive a legal basis to collect compensation of up to 5 million rubles from violators.

In the practice of the Federal Patent Bureau “Zhelezno” there was a case when we helped a client to receive impressive compensation for the illegal use of his brand MR. PROFIPOL. A store under this name opened in another city. The store owner did not contact the trademark owner and did telegram data not enter into any contracts. At first, we tried to resolve the issue peacefully. We wrote to the violator several times and asked him to change the name. He did not respond to a single letter. Then our lawyers drew up a pre-trial claim and sent it to the competitor. It remained unanswered within the required 30 days. After that, we went to court. The competitor immediately wanted to negotiate with our client, but it was too late. The court ordered the violator to pay compensation in the amount of 3.5 million rubles and prohibited him from using the name MR. PROFIPOL.

• Safe work on marketplaces.Companies register trademarks

About 70% of the clients of the Federal Patent Bureau “Zhelezno”  are marketplace sellers. Already in 2024, online platforms have become much more active in working with violations of intellectual property rights. The copyright holder only needs to write to technical support, and the build a profile of positive reviews violator’s product cards will be blocked.

This is how we helped the owner of the GLOW ME brand block 13 competitors. This brand’s lip gloss became one of the best-selling on Ozon. Competitors copied cards and sold fakes of very low quality. We sent a complaint to the marketplace, where we indicated all the facts of violations. Within 1-2 days, the marketplace removed all cards with fakes.

• Saving on taxes.

The scheme is as follows. The director (individual entrepreneur) owns the trademark. The company (LLC) operates and transfers money to the owner for using the brand. slovakia business directory The amount of remuneration for using the trademark is included in the LLC’s expenses. Payments for the trademark increase expenses, due to which the taxable base decreases. The individual entrepreneur pays tax on the income part, which includes the royalty amount. The tax rate for individual entrepreneurs is 6%, for LLCs – 15% or 20%. Thus, a trademark will allow you to save 9 or 14% of the remuneration amount.