Generally, the Trademark Registration functions perform four functions
- We can identify the good or service of one seller from other sellers
- To check whether the product of the same trademark comes from one source or different sources
- The same trademarked product’s quality checking
- Act as an advertisement key for selling the goods and services
- Licensing or contracting key
- It avoids the public confusion on the product’s resources from similar products.
- It protects the owners business and goodwill. Because the business will not run efficiently without any trademark registration functions.
Two different concepts about Trademark Registration functions
There exists a basic role in the role and functions of a trademark. Identically, The Trademark Registration functions performing on regulating by certain Laws. But it is quite difficult or impossible to regulate the role of the trademark. Additionally, The trademark apart from the property act as a trademark barrier and has an economic impact as their own way in the market place which is extending to the legal protection. Similarly, The relation between the role and functions of trademark specified under section 22 and it gives the rectifications of legal mechanisms.
The importance of trademarks law in an economy is highlighting mainly in Coimbatore.
Product Differentiation Function
Getting Product Differentiation Function is only applicable through trademark. Moreover, The imperfection in substitutability to the buyers of the product or service of the sellers in an industry is defining term product differentiation.
Patents and industrial design are important for categorizing the product for the specific term. But the Trademark Registration functions is an important process in the differentiation process, legal protection for an unlimited time.
Other products which are different in the eyes of the buyer are weaker when it compared with trademark because other elements are easier to copy. Additionally, The legally protected trademark products make its condition secure and avoid the imitation of products and make it even responsible.
In the case of price competition, the demand is arising. Likewise, When the perfect competition arises the trademarked product and services get higher value in the eyes of the buyer. But in the case of product differentiation, the trademark product or services are just close substitutes. Uniquely, The competition arises in advertising effort and building brand loyalty based on the non-substitutability of products and services.
Identification of Source/ Origin of Trademark Registration functions
The main importance of a trademark is to serve the source of information to the customer to attain the origin of the source. Notably, The trademark is the origin of full sets of information related to the quality of the products. It includes state of art working, warranties after the sales service, etc. Indeed, The trademark’s product information function is considering to be the reserve. Thus, the possibility of removal of differentiation of goods and services through trademarks are not desirable.
Transformation of Origin Function
The origin function indication transformed in modern times through brand propagation. Brand propagation is one of the main features of brand marketing. Significantly, If a consumer switch brands frequently then the brand propagation on the existing system get decrease and thus create a barrier between the newly entered business enterprises. Simultaneously, The continuous introduction of the new brand may understand by the marketing needs and thus maintaining the market shares by a small number of manufacturers. Additionally, The one drawback behind this propagation is the trademark fails to perform the indication of origin function properly. Especially, Once the product identifies by the trademark, then it can purchase by the consumer if he satisfied. Identification of a particular source through a successful trademark naturally creates generous market power.
Experienced Quality Function
The supplementary Function: The product identification and quality is a second term comparing to the trademark. The goodwill mentioning in the trademark represents the properties in a trademark that are already mentioned in it. The goodwill brings the cost of the trademark to the society. And it also brings the identification of source and quality to the buying public.
The protection against the unfair competition: In respect of the quality identification function the doubts are arising but it is the result of the protection against the quality unfair competition. The trademark protects the confusion arising between the consumers on a particular product. If the goods or services are in the same range then the opinion of quality differs or they give evenness of quality.
The quality identification system serves the buyers interest in having better and complete information. If the owner can able to preserve the quality level of the product then the assumption also defines he can retain the quality from the previous level or he can worsen it.
The Economic and Legal value of trademarks
Every trademark has certain roles in enterprises and acts as intangible assets. The cost of having such assets is categorizing in two parts. First, those connected with the registration and renewal of the trademarks, second, those involved in advertising the product or service regarding the mark and thus maintaining the economic value of the mark. The cost of application for trademark registration is very low in government offices. But some additional costs are applicable for the trademark search and government license.
The amount varies in accordance with the following circumstances like the number of classes the trademark applying for, number of countries which it is fled and various difficulties in the registration process. These costs also depend on the type, size of the company and the tests and studies that are undertaken in the quality checking.
The property values are totally higher than the costs sustained. Once the trademark for the particular product is launching then the advertisement gets started to continue the power of the goodwill. The advertising costs are investible and are reflects in the commercial value of the trademarks. When we consider the trademark as an asset then we cannot look into the costs behind its promotion. The real value of the trademark is determining by the strength in the free market.
The difference in the economic and legal value
There is a difference in the legal and economic value of the trademark. The entire registered trademark has some sort of same legal value and it has unlimited life till its renewed but the economic value is widely different. The stock of different legal trademarks has contains a certain unequal commercial value with different economic life expectations. Whatever be the balance of positive and negative role of an exclusive right vested in a trademark the competitive role of the trademark is well recognized. There are no other tools to identify the origin of goods.
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