What are Trademark Rights? Advantages and disadvantages of acquiring rights explained!

What are Trademark Rights?

I’m thinking of starting a business and advised to get a trademark, but what are advantages of getting a trademark? Are there any disadvantages?

Simply, the major advantage is that “the trademark can be used exclusively within the scope of the trademark right”. There are various advantages that derive from this. On the other hand, the disadvantage is that it costs money.

What do you mean by exclusive use? I’m getting curious, I’d love to know more.

This article will give you an overview of trademark rights and advantages and disadvantages of acquiring rights.

What are trademark rights?

Trademark rights are established under the Trademark Law to maintain business reputation of the person (including corporations) using the trademark and to protect interests of consumers (consumers and traders).

After an application for trademark registration is filed with the Japan Patent Office and a registration decision after an examination by the Patent Office is received, the establishment of the trademark is registered and trademark rights are created by paying a registration fee.

Please refer to the following articles for explanation of the requirements for trademark registration.

Advantages of obtaining trademark rights

The advantage of obtaining a trademark right is “the exclusive use of the trademark within the scope of the trademark right”. The following advantages can be derived from this.

Injunction against use by others (third parties)

Without permission of the trademark owner, others (third parties) may not use a mark (name, graphic, etc.) identical or similar to the registered trademark in the same or similar goods (services) designated by the registered trademark. The holder of trademark right may demand an injunction against the use of the trademark by others, regardless of whether or not he/she knows of the existence of the registered trademark if others are using it. In addition to that, it is also possible to claim compensation for damages.

Restriction of registering trademark by others (third parties)

After a trademark has been registered, it is prohibited for anyone other than the trademark owner (third party) to register a mark (name, graphic, etc.) identical or similar to the registered trademark in the same or similar goods (services) designated by the registered trademark.

Specifically, it is possible to prevent others who are completely unrelated to you from preempting the trademark that you are using. If you are preempted by others, you may have to stop using your trademark unless the trademark rights by others can be assigned, cancelled, or invalidated.

By acquiring trademark rights, you can avoid the registration of trademarks identical or similar to your (your company’s) registered trademark within the scope of the registered trademark after the registration date.

Note: Even if a trademark has been registered, an identical or similar trademark can be registered after the right has been terminated. Therefore, the registered trademark that you are using must continue to have rights. If someone else acquires the right to use the trademark after the right has been terminated, there is a risk of trademark infringement by using the trademark by yourself. You need to be very careful in this regard.

Social credibility

Trademark registration is recognized by the Japanese government, which leads to social credibility.
When handling goods or services bearing a trademark, it can be clearly stated that you are not infringing on the trademark rights of others, and business partners and consumers can purchase and use your goods or services with peace of mind.

Registered trademarks establish brands

Since trademark rights do not have a limited term like patent or design rights, you can renew your rights for another 10 years by filing a renewal application before the expiration of the 10-year term, thus retaining your rights semi-permanently.

Continuous use of a registered trademark for a long period of time builds up trust in the trademark, which in turn increases the brand value of the trademark.

Disadvantages of obtaining trademark rights

The disadvantages of acquiring trademark rights include the following:

Costly to obtain and maintain (renew) trademark rights

If you request an expert (patent attorney, patent firm, etc.) to handle the procedures, the cost from application to registration is expected to be around 200,000 yen. Additional costs will be incurred if a search is conducted prior to filing the application or if communication with the examiner is required during the examination process. In addition, if more than one class of designated goods (services) is involved, the fee will increase.

By using our Amazing DX service, the cost can be kept low. Please refer to our Fees.

Long time to obtain trademark rights.

From filing of a trademark application to granting of rights, a period of 10-12 months is expected. If certain conditions are met, registration can be achieved in 2 to 3 months using the accelerated examination system.

Although it is preferable to use a trademark after it has been registered, if a trademark search may be conducted prior to filing a trademark application and the trademark has a high likelihood of registration, use of the trademark may be commenced after considering the risks involved.

Sure, the cost and time frame could be considered a disadvantage, but the benefits of using the trademark without worry after acquiring the trademark rights seem to outweigh the disadvantages!

Summary

We have provided an overview of trademark rights and explained their advantages and disadvantages. Trademark rights are very strong rights and can be useful for your business. Please take this opportunity to consider obtaining trademark rights for the names and marks you use for your products and services.