Brand Protection for Every Business

Starbucks spent $387 million last year alone to create an entire user experience through branding and brand protection.  Take away that branding, and the remainder would be nothing but (some would say mediocre) cup of coffee in a paper cup.

Possibly, to a lesser extent, every business focuses on creating a brand because it is essentially the only way to communicate the unique value and quality of that business’ good or service.  Just as we all protect homes, businesses, and autos through e.g., insurance., businesses protect brands through documenting their various aspects (e.g., logos, designs, words, color schemes, customer perceptions), pursuing trademarks for key logos and brand names, and subsequently policing its protected intellectual property against any potential infringers.

Only Protected Brands Grow in Value

Unlike physical assets, which actually depreciate, brands generally appreciate in value over time.

Brands start from nothing. As the reputation grows, the relevant market begins to attribute certain (hopefully positive) consistent characteristics, qualities, and feelings of the company and its goods/services. Branding marketers document those elements and create marketing collateral to build the brand. The brand grows as the company grows.
But what happens if the process is started on a logo or product name that is suggestive of another company (i.e., infringement)?  Or what happens if the company never formally protected the brand and some other company comes along and copies it?  The answer is that the brand, and most possibly that company, is doomed or, at the very least, in trouble.  Brand protection attorneys are not only suggested but required at that point.

Failure to Protect Brand Hurts Acquisition Potential

Then, there is the fact that protection is an obvious aspect of due diligence when a company is going to be acquired.  If the answer is “we created the brand but never cleared it or filed formal trademark applications”, from my experience, the acquirer will either walk away or substantially discount the price they will pay.  In other words, brand protection is not discretionary, and most successful companies start early and build continuously.

Making Money off Brand Alone

Franchisors are examples of business entities that use the power of brand-stored value and goodwill in their brands to license their brand out to other businesses.  For example, Subway is a franchise.  The franchisor would not be able to license the franchise if that brand in all of its elements was not heavily protected.

The same is true with merchandising.  Some brands, such as Nike, may allow another company to use their brand on products such as eyewear or clothing through a license. This type of leveraging of a brand can bring in money from industries that have nothing directly to do with current business modeling.  However, this strategy is all for naught if it is not protected.

Brand + Protection = $

Respected/protected brands earn more money. Once a brand reaches a certain level of respect in the eyes of the public, the brand owners can charge significant premiums on their products and services. While it can take decades to reach the level of Apple or Google in brand name respect, efforts made to protect the brand at an earlier stage can yield significant returns in the future.  And in a world that has become increasingly cluttered with brands vying for attention, this added value is important, especially to take advantage of a successful exit.

Brand Protection for Every Business

The stronger the brand, the more likely acquisition is possible, especially when a strong brand can equal strong profits.

While no doubt emerging companies have an incredible amount of immediate needs, companies should not underestimate the vital importance of protecting brands; the protection secured today should pay off in spades in the not-so-distant future.

Brand protection is a speciality in the legal world of intellectual property.  EmergeCounsel attorneys have protected hundreds of brands (as well as their own).  We offer free initial consultation to discuss your custom brand strategy needs.