Benefits of a Trademark

Can you think of a successful business that does not use a trademark for its goods or services? There are at least three good reasons why you can’t.

Trademarks serve three main purposes. First, a trademark identifies the source of a good or service. This allows consumers to differentiate between the goods or services offered by more than one manufacturer or service provider.

Second, a trademark should guarantee consistent quality. This allows consumers to associate goods or services offered under a particular trademark with a standard of quality; this does not mean that the goods or services offered under a certain trademark are necessarily of the best quality. Rather, it gives consumers the comfort of knowing that any goods or services purchased under the same trademark as previous goods or services will be of the same general quality. For example, the Big Mac you buy at a McDonald’s in New York City should be of the same general quality as a Big Mac you buy at a McDonald’s in San Francisco.

Third, a trademark is a conduit for effective advertising. Not only can the trademark itself be the word, design, or device used in advertising, but the goods and services bearing that trademark act as advertisements themselves. For example, your prominently displayed trademark on the packaging of your product builds the association between your trademark and your company in the minds of consumers.