Why are startups doomed to struggle if they Fail to Register Trademarks?
Conducting trademark registration in the UAE appears to be the least important for startup owners. While goals such as finding potential investors and building a large customer base take priority, brand protection remains to be the key aspect that receives less attention from entrepreneurs. Some entrepreneurs consider registering a brand as a cost than an investment hence they cut trademark registration costs in the UAE. Meanwhile, another group of entrepreneurs think trademark registration is only for big Multi-Nationals.
However, trademark agents in Dubai can assert that all such reasons are unfounded. A startup with good growth potential is bound to stagger if it pays no attention to develop a strong brand and protect it through trademark registration in the UAE. Entrepreneurs fail to realise that registered trademarks are key to attract customers and make them loyal to their products or services. Moreover, a valuable brand is essential for entrepreneurs who wish to sell their startups to bigger MNC groups at a later stage.
If you have a running startup or plan to set up a startup in Dubai, you must register your trademarks right from the get-go. If you continue to do business without registering your trademarks in the UAE, the following risks will choke your startup:
1. You will Lose your Rights over Logos, Brand Names
A trademark establishes the identity of your brand in the jurisdictions where it’s registered. Typically, companies register logos and brand names as trademarks. By registering trademarks in the UAE, you get the right to legally use your logos, brand names and slogans. If you fail to register your trademarks, it means that your claim of ownership to such assets are not valid in the eyes of the governing law. If someone questions your ownership claims, it would be tougher to prove that you created and owns such trademarks.
2. Others can Steal your Trademarks
If you are yet to register your brand in Dubai, UAE, it opens the door for others to register trademarks that are identical or similar to your trademarks. Once granted registration, other parties will start enforcing the trademarks in the UAE. Imagine your competitor setting up a shop near to yours, flaunting brand names or logos that are similar to yours. You are powerless to stop them as you have not registered your trademarks in the UAE. The only solution will be to embark on a lengthy court battle. To avoid such mishaps, protect your brands right after operating the business.
3. Customers will have less access to your products
Registered trademarks play the most important role in enhancing the size of your customer base. When you walk into a supermarket, you will see a large number of similar products placed on nearby shelves. A customer who walks into the supermarket makes a purchasing decision based on easily recognisable trademarks. Customers associate a registered trademark with quality, safety and higher standards of manufacturing. They will buy your product irrespective of the price if it bears a well-established trademark. If you have not registered a trademark in the UAE, you will lose your potential customers that will give an unfair advantage to your competitor.
4. Your Business Will Suffer Due to Counterfeiting
Every lucrative market across the world is vulnerable to acts of counterfeiting. Counterfeiters target well-known brands to unfairly benefit from their good reputation. However, the UAE has implemented a strong defensive system against fake goods in the form of protection through Customs Authorities. If you record your trademark with Dubai Customs or Customs Authorities of other emirates, your products will be shielded from trademark infringement. The Customs Officials will alert you once shipments containing counterfeit products reach the UAE. However, such protection is granted only for those brands that have registered their trademarks with the UAE trademark office. This means brand owners who are yet to register their trademarks in the UAE will suffer losses due to the act of counterfeiting.
5. You will Struggle to Attract Further Investments
Finding more investments is the primary aim of every startup and more investments will be decisive in ensuring its longevity. Investors are generally attracted to businesses that have a significant brand value, which means startups with a registered trademark can score big in attracting investors. Failing to register trademarks in the UAE will close the door for more investments into your startup.
Choose the best Trademark Agents in Dubai, UAE
As an entrepreneur running a startup, you are at greater risk of not performing trademark registration in the UAE compared to bigger business owners. The smaller your business, the more protection you need. Larger brands usually have the financial and legal resources to be fully protected under trademark laws, or if not, they are in a better situation to defend trademark disputes. Considering this key reason, startups should register their brand as soon as possible, through the best trademark agents in Dubai such as Jitendra Intellectual Property (JIP).
JIP has been assisting all kinds of businesses to register their trademarks successfully for many years, and we have the experience and expertise to be able to help you. JIP’s trademark registration services in Dubai will enable you to ensure better brand visibility and brand success.