Top Six Ways A Registered Trademark Helps You Make Money

A trademark plays the most important role in shaping the identity of a brand. These trademarks leave an indelible impression on the minds of consumers and thereby garners value over time. The trademarks of big brands such as Apple or Google are now worth billions due to their dedicated effort to build a unique brand. Apart from dedicated efforts, you need to first perform trademark registration in the UAE to ensure your brand acquires huge value eventually.

Apart from building reputation, identity, and busting infringers, a registered trademark offers you many other important perks. Being the exclusive owner of your trademark can help you earn a profit the way the other big companies do.  Here are some unique ways in which your registered trademark can earn money for you.

1. When You Sell the Business

This applies when the company undergoes a major merger or an acquisition that alters the economic landscape for stakeholders involved. Before selling the company to another group, you need to assess the equity the brand name or trademark logo has acquired over the period starting from its launch. A rough numerical estimate of the value of the trademark can be evaluated using your company’s financial statements, public financial statements of competitors, and the royalties (if any) earned by the company. By transferring the trademark’s ownership to a new company, you can earn money based on the value of the brand.

2. Licensing Your Trademark

You can license your trademark to allow other entities or businesses to use your logo for an advertisement or campaign. Big companies often license their trademark to other entities to be used at an event or a fundraising campaign to showcase the brand in a positive light. The use of the Emirates logo on the Manchester United jersey. Think of the image of the Emirates logo on the jersey of Cristiano Ronaldo in 2007. Some companies exhibit a magnified form of their logo at big events. Pepsi had once printed their logo onto the seats in a stadium, which when combined appeared as a giant-sized version of their otherwise small logo.

3. Using the Trademark as Collateral

Being an Intellectual Property, trademarks are considered as one of the prime assets of every company. When the value of your brand name or logo becomes high over some time, you can proposition the trademark as collateral. You can avail of a loan in exchange for your registered trademark. The terms and conditions of the loan may not be the same as a normal loan. However, it depends on the equity your trademark has acquired and the amount of the loan you requested.

4. Funding Opportunities

When your business grows, you may decide that you want to part with certain parts of your business. Trademarks are separate assets whose value will build up over time. Instead of just letting the business go, you can sell off certain trademarks to other companies that carry out similar activities like yours. You can use the funding from the asset sale to support the new activities of your business. You need to ensure that you have the legal rights over the trademark through trademark registration in the UAE.

5. Co-branding With Another Company

In this branding method, you create a mutually beneficial arrangement with another entity for a brand partnership. In co-branding, two well-known brands combine to create a third, uniquely branded product. Co-branding is rampant in the banking sector where well-known banking brands partner with brands in other sectors to promote credit cards. In the UAE, banks such as Emirates NBD offers a range of co-branded cards for the airline, travel and hospitality sectors. Similarly, Mashreq Bank has a co-branding partnership with which resulted in the UAE’s first e-commerce co-branded credit card called ’Mashreq noon VIP Visa Credit Card’.

6. Creating Franchise Agreements

By signing a franchise agreement, you can permit a franchisee to use your registered trademark. In the UAE, the trademark owner has the right to allow an exclusive or non-exclusive license to the franchisee in the same geographical area. If a trademark owner grants an exclusive license say in the UAE, it means that only a specific licensee has the right to use the registered trademark in the UAE only. In such a case, the trademark owner cannot grant the license to any other parties for the same goods and services in the UAE however the trademark owner can grant the license to another person outside of the UAE say in Saudi Arabia or Bahrain etc. However, if the owner of the registered trademark is granting a non-exclusive license in the same geographical area say in the UAE, then one or more parties get the right to use the mark for the same goods and services in the UAE.

How Can Jitendra Intellectual Property Help You?

Conducting trademark registration in the UAE not only helps in safeguarding the business from competitors but also opens the door for you to make money. An unregistered trademark puts your brand at infringement risk apart from shutting the doors of profit-making. Therefore, every business should register their trademarks right from the get-go through trademark agents in Dubai such as Jitendra Intellectual Property (JIP). JIP is one of the most experienced IP firms in the UAE that can help you in safeguarding your valuable trademarks. JIP’s trademark services in Dubai include trademark registration, trademark assignment, trademark search, trademark watch etc

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