We frequently tell clients and prospective clients that no matter what kind of business you own and no matter how much time you’d like to spend developing your products or providing your services, the thing that will take up most of your time as an entrepreneur is really marketing. You have to let potential customers and clients know about your products or services and why they should choose you over the competition. But how much can you really say about the competition in your advertising materials? ​

​If your product or service is built around a particular brand identity, then you probably already understand the importance of registering your trademark with the USPTO. And if you’ve already made it through the long and painstaking registration process, then congratulations! But all too often, our small business and nonprofit clients assume that receiving the registration certificate is the end of the story. How do you make sure the time and expense you just went through to get your trademark registered in the first place doesn’t go down the drain? What do you need to know to avoid losing your trademark rights?

When most people start a business, they tend to put off legal issues until other things have been dealt with. Business owners know that legal issues will require the services of a lawyer, which can be both expensive and intimidating. But the truth is that some legal issues regarding your new business should be dealt with from the start and trademarking your business name is just one example.
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Many of the entrepreneurs we talk to, spend a lot of time and money coming up with a unique brand name or logo or slogan, but then they skip the important step of actually protecting it. It is easier than you might think for someone to claim your idea as their own. The first step is to register your trademark. This article outlines the six necessary steps you will need to take to trademark your company name.

​Trademark infringement is the unauthorized use of a trademark on or in connection with goods and/or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services. But what does this mean for your small business? How can you avoid receiving a nasty cease and desist letter accusing you of infringing someone else’s trademark? And how much can a trademark mistake cost you?

We’ve talked before about the importance of conducting a thorough trademark search before launching a brand name or logo or slogan. You might be surprised to learn about similar trademarks that are already in use. You might learn that your proposed trademark would be considered relatively weak. Even if trademark registration simply isn’t in the budget yet or a federal registration doesn’t make sense for other reasons, you still need to know what trademarks your competitors are already using. 

​Whatever the reason for not moving forward with a trademark registration, that still leaves an important question—What rights do you have if you don’t or can’t register your trademark? Is there anything you can do to protect your unregistered trademark?

When you are working hard to build a brand, it’s easy to say “just trademark everything…name, multiple logos, slogans.” And in a perfect world, you should trademark every aspect of your brand. But in the real world, trademark registrations are not cheap, especially on a start-up budget. And multiple trademark registrations won’t matter if you aren’t also making sales, hiring staff as you grow, and improving your product or service.

So if budget is an issue, what should you trademark first? Your name or your logo?

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​A licensing agreement is a contract in which you, the licensor, gives someone else, the licensee, permission to do something that they otherwise would not have the right to do. There are many situations in which a small business might use a licensing agreement:

• If your business is only reaching customers in a particular region, you might enter into a licensing agreement with another business to sell your products or services in a different region. 
• If your business develops software, you are typically giving end users permission to use the software in a particular way, but you are not selling the underlying code that makes up the software. (This is also true of businesses that operate under a software as a service or SaaS business model.)
• If you create content for others, you have to decide whether you are giving up all of your rights in that content, or simply giving your client permission to use that content (in which case, you retain the right to re-use that content with another client).
• If your business has a proprietary process or patent rights in a particular technology, you might monetize that confidential information by giving another business the right to use that confidential information.
• If you franchise your business or offer a business opportunity, you are licensing your brand for someone else to use.

​While licensing agreements need to be customized to fit your particular business situation, there are some common terms that most licensing agreements should address.

Over the lifespan of a small business, you may find yourself needing to sell or transfer intellectual property rights. There are a variety of situations where this might come up:
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• The trademark or copyright was registered in the name of an individual owner instead of the business. (Because this can be an incredibly valuable business asset, most of the time, the intellectual property should belong to the company and be registered in the company’s name.)
• The intellectual property rights are being sold in connection with the sale of all or part of the business.
• The trademark or copyright is being used as collateral to secure a debt.
• The company is merging with another business, and the intellectual property rights need to be transferred to the other business (or sometimes a new entity created out of the merger).
• The business entity (or sometimes individual) that owns the trademark or copyright undergoes a name change, and the registration simply needs to be updated.

​Even though intellectual property rights are intangible, they can still be sold or transferred much like any other business asset. This week, we look at how to transfer ownership of these assets. Except for name changes, we first need an agreement between the parties describing the terms of the sale or transfer. Then, we need to record the assignment of the intellectual property rights in the appropriate office.

(Note: Licensing intellectual property is not the same as transferring ownership. Licensing deals with a temporary right to use intellectual property, not a change in the underlying ownership.)