Key Factors Influencing the Value of Your Trademark
Businesses conduct trademark registration in the UAE realizing that a trademark is one of the most valuable assets they can own. A registered trademark offers businesses identity, security and value. It is connected directly to what drives revenue and value to a business. Registering a trademark is a legal process that can be easily navigated by hiring the best trademark agents in the UAE.
Trademarks are critical for protecting a company’s intellectual property and helping it stand out in a crowded market. However, have you ever thought about how valuable are trademarks when it comes to a company’s overall value? The answer, as you might expect, is not straightforward. You need to take into account a wide range of factors while properly determining the value of your trademark. Some of the key factors influencing the value of your trademark are listed below:
Distinctiveness of the Trademark
The more distinctive your trademark is, the more valuable it is likely to be. A distinctive trademark is one that is unique and easily recognizable, which helps to differentiate your brand from competitors. From a legal perspective, only distinctive or strong trademarks can be registered with the UAE Trademark Office. Applications for weak or non-distinctive trademarks will be rejected by the Trademark Office.
A brand name which is fanciful, arbitrary or suggestive is considered strong or distinctive. Names that are generic or descriptive are treated as weak and not registrable. A coined name like ROLEX is a fanciful trademark while APPLE for computers is an arbitrary trademark. TESLA and NIKE are some of the well-known suggestive marks.
Industry of the Brand
The industry in which a trademark is operated can add significant value to it. For example, trademarks can be a key factor in a company’s overall value in the fashion and luxury goods industries. Compares to the fashion industry, trademarks may be less significant in sectors such as manufacturing. The most valuable brands in the world are currently in the following industries:
- Tech & Services industry (A total value of USD 2 Trillion and 37% of the top 100 brands)
- Media and Telecom (with $1 Trillion and 20%)
- Retail and Consumer Goods (with USD 900 Billion and 17%)
- Banking and Insurance (USD 634 Billion or 12%)
The Reputation of the Brand
The reputation of your brand and the quality of your products or services can have a significant impact on the value of your trademark. If your brand has a strong reputation for quality and reliability, your trademark is likely to be more valuable. Companies having a strong, well-recognized brand is likely to have a more valuable trademark as their brand is more closely associated with their products or services. Some of the most valuable brands in the World in 2023 are:
- APPLE (USD 355 Billion)
- AMAZON (USD 350 Billion)
- GOOGLE (USD 160 Billion)
- MICROSOFT (USD 185 Billion)
- WALMART (USD 110 Billion)
- SAMSUNG (USD 105 Billion)
- FACEBOOK (USD 100 Billion)
Market Share of the Brand
The size of your market share can also influence the value of your trademark. A trademark associated with a market leader or dominant player in a particular industry is likely to be more valuable than one associated with a smaller player.
The Geographical Scope of Protection
The geographical scope of your trademark can also affect its value. A trademark that is registered in multiple jurisdictions or has international recognition is likely to be more valuable than one that is only recognized in a single jurisdiction. Trademark agents in the UAE can help you protect your trademark in multiple countries through the Madrid Protocol.
The Extent of Legal Protection
The legal protection afforded to your trademark, including its registration status and any legal challenges or disputes, can also influence its value. A trademark that is well-protected and has a strong legal position is likely to be more valuable than one that is vulnerable to infringement or challenges. Consult with trademark agents in the UAE for registering your trademark with the Ministry of Economy.
Protect your Trademarks through Trademark Agents in the UAE
The value of a company’s trademark depends on the mark chosen, the company’s performance, reputation, geographical scope, the extent of legal protection and the industry. However, a registered trademark is likely to have more protection and value than a trademark, which is not registered with the Trademark Office. It is advisable to conduct trademark registration in the UAE as soon as you develop a distinctive mark for your brand.
Trademark agents in the UAE such as Jitendra Intellectual Property (JIP) can help you register your mark with the Ministry of Economy. JIP is one of the leading providers of trademark registration services in Dubai with years of experience. We also offer trademark litigation services in the UAE in case you want to take any infringement case to a court. We can also help you with international trademark protection through the Madrid Protocol. Avail of our brand registration services in the UAE to ensure your valued trademark remains protected wherever you have the business.