What Is a Trademark? The Difference Between Brand and Trademark

If you are a business owner or creator, you have probably heard the term trademark. But do you know what a trademark is and why it matters? In this article, MONA Media will help you understand what a trademark means and give you useful information about Trademark and trademark registration.

What is a trademark?

Trademark also called a brand mark, is a symbol or name of a product or service that is registered and protected under intellectual property law to distinguish it from the products or services of other providers.

So what does registering a trademark mean? Registering a trademark means you have the exclusive right to use the symbol or name of your product or service. This registration protects your intellectual property and ensures nobody else can use or copy your product or service.

See more: What is brand positioning? How to build a standout brand

Why register a trademark?

Registering a trademark (registering exclusive trademark protection) gives you several important benefits, including:

• Protect your intellectual property, making sure nobody can use your brand name without permission.
• Set yourself apart from competitors' products or services, so customers can easily tell your products from your competitors'.
• Add value to your brand, once you register trademark protection, your brand becomes more credible and customers value it more.
• Build customer trust and credibility, when customers see that you have registered a trademark, they feel more reassured and confident using your product or service.

In addition, registering trademark protection helps you avoid legal disputes that could arise in the future. When you register a trademark, you have the right to use your brand name for a specific period, which ensures nobody can use it without permission. This helps you avoid intellectual property disputes later on and saves time and money on legal matters.

So, if you have business plan long-term goals, registering a trademark is a necessary step to protect your interests and add value to your brand.

→ See more about: Personal brand building process success in 10 steps

What is the difference between a brand and a trademark?

Many people still confuse the concepts of brand and trademark. So what actually sets a brand apart from a trademark?

“Brand” is a term for a brand mark, commonly used to describe a company's products or services. Meanwhile, “trademark” refers to a mark protected by intellectual property law, usually registered to guard against copying or unauthorized use.

Many people translating “brand” into Vietnamese run into a conflict between the terms “nhãn hiệu” (trademark/label) and “thương hiệu” (brand). Both, however, relate to the broader concept of a brand, which includes the brand name, logo, product packaging and marketing plan. So although they do not represent the whole concept of a “brand”, “brand” and “trademark” still play an important role in protecting and managing a company's products and services.

Some decisions related to trademarks

Building a successful trademark takes many decisions. Besides knowing the rules on trademark protection, you need to make these important decisions:

Choosing the trademark name

Strategies for choosing a brand name include:

• Use a distinct name for each different product.
• Use one common name for all products.
• Combine the company's brand name with a distinct product name.
• Use a group name for each product category.

To name a trademark, consider the business's characteristics, target market and competitive landscape. Large companies usually follow these steps:

• Step 1: Define the goals and criteria for the trademark name.
• Step 2: List candidate trademark names.
• Step 3: Pick a few strong names to test.
• Step 4: Collect customer reactions.
• Step 5: Check whether the chosen name can be registered and legally protected.
• Step 6: Decide on the trademark name for the product.

Requirements for a good brand name:

• It should refer to the product's benefit.
• Easy to pronounce, remember and recognize.
• Distinct from other brand names.
• Easy to translate into foreign languages.
• Can be registered and legally protected.

When creating a new trademark, make sure it meets two main goals: commercial value and easy to protect. A trademark with commercial value must attract public attention, especially the potential customers the business wants to win. To reach this, the trademark should be easy to pronounce, easy to remember and stimulating.

Decisions about trademark quality

The quality of a trademark is an important positioning tool in Marketing and shows its capability. To achieve quality, a product needs durability, reliability, ease of use, ease of repair, accuracy and other valuable attributes. Product quality can be measured by buyers' perceptions.

Most trademarks are established at one of four quality levels: low, medium, high and superior. A high quality level is the most effective, but if every competitor aims at high quality, the strategy loses its effect. You need to choose the quality level that suits a specific target market segment.

Trademark strategy decisions

Multi-brand

Multi-brand is a marketing strategy in which a business launches several different brands within the same product category. Its main goals are to take more shelf space, meet the varied needs of different customer segments, and protect the flagship brand from competition.

Example: In the shampoo market, Unilever uses a multi-brand strategy very effectively with products such as Sunlight, Clear, Dove and TRESemmé. Each brand targets a specific customer group and need: Sunlight for oily hair, Clear for dandruff, Dove for moisturizing and TRESemmé for a professional style. This way Unilever covers the whole shampoo market and also reduces risk when one brand has a problem, because the others keep operating.

New brand

A new brand means creating an entirely new brand name for a product line or product type the business has never sold before. This strategy is usually used when a business wants to expand into a new market, create a completely different image, or when existing brands do not fit the new product.

Before launching a new brand, a business needs to consider the following factors carefully:

• Number of existing brands: Is a new brand needed, or can an existing brand be used to expand?
• Cost of creating a new brand: This includes market research costs, logo design, trademark registration and, above all, the promotion costs of building brand recognition from zero.
• Profit potential of the new product: Is the target market big enough and the product attractive enough to ensure revenue and profit that cover the investment in the new brand?

→ See the overview: What is branding? Learn everything about branding in detail

What symbols show that a business has registered a trademark?

After registering trademark protection, a business can use the following symbols to identify its brand:

• Trademark – ™: Used after you register a logo or phrase to protect the brand.
• Registered – ®: Used after the mark has been granted by an official trademark office, making it legally recognized and protected against trademark infringement.
• Service Mark – ℠: Used only by companies that provide commercial services, to help make the brand distinctive in its industry.
• Copyright – ©: Used to protect a brand's products, documents, services or creative content.

What is trademark protection?

Trademark protection means registering and having the law recognize your exclusive ownership of the name, logo, slogan or any other identifying sign of your product or service. Registering exclusive trademark protection stops others from copying or counterfeiting, and protects the reputation and brand value you have built. It is a legal shield for your brand.

Why trademark protection matters for branding

Trademark protection is a key element and is vital to a business's branding strategy. It is not just registering a name or logo; it is a solid legal framework that protects the core value the business has built with effort. Registering and holding the right to use a trademark brings these benefits:

• It helps customers recognize the product and the name of the business or individual.
• It prevents legal risks and protects the owner while using the trademark.
• It helps businesses and individuals take more initiative in production and business activity.
• It protects your product or service from other businesses that might copy or use your brand name without permission.
• It builds a trustworthy brand and helps customers tell your products from your competitors'.

To build a strong, lasting brand, trademark protection plays a foundational role, but it is only part of the bigger picture. A legally protected name or logo is necessary, but for a brand to really take hold in customers' minds and create value, you need a complete, professional brand identity system. That is what turns a protected trademark into a lively, recognizable and trustworthy brand. That is why MONA Media offers a full brand identity design service, helping your business keep every touchpoint consistent and make a distinctive mark in the market.

MONA Media's brand identity design service includes:

• Logo design: The symbol that is the soul of the brand, which we refine to be meaningful, unique, memorable and suitable for every platform.
• Office stationery system: Business cards, letterheads, envelopes, staff ID cards and more, keeping every transaction professional and consistent.
• Marketing materials: Poster design, Catalogue, brochure design, catalogues, flyers and more that attract attention and carry your message effectively, helping you reach the right customers.
• Product packaging design: Packaging designs that are attractive and eye-catching and also express the product's core value, encouraging purchases.
• Digital design: Templates for social media, website banners, email marketing and more, so your brand always stands out online.
• Brand Guideline: Ensures consistency across all of the business's communication and marketing activity.

In this article, MONA Media has introduced the concept and role of trademarks for brands in particular and business in general. We hope it helps you better understand what a trademark is, the conditions for trademark protection and the rules on trademark protection, so you can register trademark protection successfully for your business.