INTRODUCTION
Almost every business has a
mark or a trademark of some kind. It may be a company name, a trade name, a product
name, a logo, a slogan/jingle, a shape, packaging, colors of a product etc.
These are all valuable ways a company may use to indicate the origin and/or
quality of their goods or services to their consumers.
WHAT IS A TRADEMARK?
Trademark has been described
by various scholars to mean a symbol, a word or words, legally registered or
established by use of representing a company or product.
The Trademarks Act of Uganda 2010
defines a trademark to mean: a sign or mark or combination of signs or marks
capable of being represented graphically and capable of distinguishing
goods or services of one undertaking from those of another undertaking.
WHAT
TO CONSIDER WHEN DEVELOPING A GOOD TRADEMARK
Target
Market: To develop a good brand, first off, one must know their
target market. Who are you potential customers? How would you want your product
to be perceived? Imagine a typography that best conveys the feeling of your
brand.
Logos,
Graphics and Colors: With your
target market in mind, you can come up with the brand color patterns and logos consistent
with your products. Your trademark may include a graphic, and if so, choose
graphic expression which will best complement your brand. Choosing a graphic
that says something about your business will help create a unique brand.
Catchy
tagline or Jingle: How do your products make the consumer feel?
This should guide you in creating a tagline, catchy and short enough to deliver
the message to the mind of the customer. It should be easy to remember. This
will form an integral part of the brand.
Legalities:
Before the brand is developed and later on sold, ensure to research your idea
to confirm you do not infringe another company’s brand. Ensure that your name
and logo do not resemble another company’s brand as this is likely to cause
confusion among customers and exposes you to a potential legal risk. Ask yourself the hard question on whether the
trademark helps distinguish your brand from competition?
WHY
YOU SHOULD REGISTER YOUR TRADE MARK
Successful companies rely on
protecting their brand and goodwill. Infringement on any of these can cost the
company millions. Having a registered company is only the first step towards
achieving full protection for your business and brand. Registration of your
trademark is the absolute protection one can have against infringement of a
brand.
·
Benefits
Exclusivity/
monopoly rights;
When you register your trademark, you enjoy exclusive
rights to use the mark. The law in Uganda grants a proprietor of a registered
mark, exclusive rights to use the mark in respect of certain goods or services,
the right to sue for infringement and passing off. Under the law, the
proprietor is also entitled to compensation among other remedies in case of
unauthorized use of a registered mark. The law further gives you a right to object
to the use or registration of confusingly similar marks. Upon registration, you
have national protection against unauthorized use of your mark.
Registered
trademarks are intangible assets.
By registering your trademark, the goodwill
attached to that trademark can be licensed or transferred in the same way any
other asset owned by the company would. Upon registration, the proprietor
acquires rights to use, sell, and license their trademark. Without a registered trademark, one would then
need to transfer the entire business as a going concern to transfer such
goodwill.
Applications
in foreign jurisdiction.
Trademark
registrations are territorial. Therefore, registration of trademark in your
home country will help you enjoy benefits when registering in another country.
However, registration of trademark in your home country only forms a basis of
applications filed outside your country.
Adds
value to your business.
Generally
speaking, every business owner wants to stand out from their competitors. A trademark
will protect the unique parts of your business such as your business name, logo
and slogan.
When
a trademark is registered, it can be widely used in selling your products and
can be instantly recognized when used over a long time. In turn, your goods are
easily identified. Once your trademark is registered, you will be able to add
the “®” symbol on your name and logo which puts everyone on notice that your
mark is registered, adding to the prestige of your company.
DANGERS
OF USING AN UNREGISTERED TRADEMARK
If you have a business, you
probably registered a company with Uganda Registration Services Bureau (URSB). A lot of Small Medium Enterprises (SMEs)
mostly indigenous companies, do not see the value of registering their
trademarks. If you question the value of registration, below are some risks
your company is exposed to if you trade with an unregistered mark.
Losing
your brand: Every year, several brands are stolen. When your
trademark is unregistered, you cannot with certainty claim to own the brand or
mark. Any other person may use the same mark or brand for the same products. Where
two or more people are using the same brand, the person who registers the mark
first, takes the advantage. This may get you entangled into undesired
litigation and potentially requiring you to pay damages, withdraw you products
from the market, redesigning your entire brand and packaging. If you have to rename your company, and
create a new branding, you could possibly lose customers in the ensuing
confusion. You may also be required to account and share all your profits with
the registered trademark owner.
Product
is at risk of duplication: If your product is widely consumed and
your trademark is unregistered, copycats are out there to take advantage of
this. They may duplicate your products and trade them with the same mark, in
turn confuse your unsuspecting customer. You risk having the market flooded
with fake versions of your product. If your trademark is not registered, you
may have no basis to place a claim against the said imitators.
Higher
litigation costs: Defending an unregistered trademark gets
more expensive than defending a registered mark. Even though an unregistered
mark has some legal protection, the burden of proof for an unregistered mark is
higher than that of a registered mark because with a registered mark, the law
presumes ownership by the registered proprietor. A proprietor of registered
mark has rights such as exclusivity and monopoly rights that may be claimed
which may not be the case for unregistered marks. In a case of passing off, a
registered proprietor will be entitled to compensation, among other remedies.
This is not the case if you claim under an unregistered mark.
DOES
UGANDA RECOGNISE TRADEMARKS REGISTERED IN OTHER COUNTRIES?
Yes, Uganda recognizes
trademarks registered in the country of origin.
The Paris Convention for
Protection of Industrial Property, 1883 is the International Legal Instrument
that provides for recognition and enforcement of Trademarks registered in
country of origin. Uganda is a contracting party to the Paris Convention for
Protection of Industrial Property, 1883.
Uganda ratified this
instrument and subsequently domesticated it under S. 44 of the Trademarks Act
2010. The said legislation ensures
protection of marks registered in countries outside Uganda. The person who
seeks protection of the said mark must however make a formal application for
registration of the mark. Uganda’s domestic legislation on recognition and
enforcement of trademarks from country of origin is in “pari material” with
the provisions of the convention above.
CONCLUSION
From the foregoing, it is
apparent that it is not only paramount to register your trademark to adequately
protect your brand, but also provides numerous benefits to the proprietor of
such registered trademark.
Trademark registration will
offer legal protection to your business, help you build your brand, prevent
competitors from registering similar trademark, and protect you against
unauthorized use by unscrupulous business players among others.
Should you wish to know more
or have your intellectual property protected, it may be worth getting in touch
with a lawyer.
Author
Benard Ainamani (Commercial Lawyer)
Partner at Blair
& Co Advocates
Tel: +256 774851102
Email:
benaine2014@gmail.com
Web: www.blairandcompanyadvocates.com
Disclaimer:
While every effort has been made to ensure the accuracy of this publication, it
is not intended to provide legal advice as individual situations will differ
and should be discussed with an expert and/or lawyer. For specific technical
or legal advice on the information provided and related topics, please contact
the author.
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