06-8-2018 |
Protect Your Brand Like Ivanka Trump
By: BrownWinick
Ivana “Ivanka” Trump is not only an American businesswoman. She also holds the titles of fashion designer, author, and reality television personality. And, based on recent activity at the trademark office, Ms. Trump is both smart and savvy when it comes to protecting her brand and actively registering trademarks. In fact, Ms. Trump has recently been registering trademarks in China faster than a toddler eating a bag of Skittles®. The result? China has awarded Ms. Trump seven new trademarks in the last month alone. Ethical considerations aside, Ms. Trump is conducting smart business.
But why register a trademark in foreign countries? Ms. Trump clearly knows. China, the land of 1.4 billion people, is a huge market for any business person who can penetrate it. Likewise, China is a huge market for all of Ms. Trump’s ventures, including books, houseware lines, and more. But, China is also a very large market for counterfeit goods which bear Ms. Trump’s brand name even though they are neither made nor sanctioned by her. What is the siren song that invites trademark infringement? A trademark infringer risks infringement claims in exchange for the increased profits it expects to gain by falsely implying its infringing goods are actually provided by Ms. Trump. It is true that many businesses such as Ms. Trump’s start marketing products there, only to find knock-offs are already being sold in China or enter the Chinese market in a matter of a few short weeks. So what can be done to prevent or stop the sales of counterfeit goods in China?
A trademark registration allows its owner to prevent these counterfeit sales and other infringing uses of its mark by filing suit or bringing complaints. Without that registration, some countries will not recognize any trademark rights. Generally, trademark infringement occurs when a party uses a mark that is similar to someone else’s mark to sell goods similar to those sold by the mark’s owner. The rules vary a bit, country to country, but the underlying principle is the same: over time and use, a trademark owner builds consumers’ mark recognition and it is unfair for another party to come along and take advantage of that investment in consumer recognition or ruin it by selling inferior goods under a confusingly similar mark. The right to require another party to stop using a confusingly similar mark is why all businesses selling products, services, or anything else --domestically or abroad-- should consider trademark registration there and at home.
Ivanka Trump is protecting her brand. Ms. Trump owns approximately 36 trademarks in China alone. One of these trademarks covers Ms. Trump’s more famous clothing line. This means she can stop others from marketing and selling clothes with the “Ivanka Trump” brand on them, and may also be able to stop users of marks that are similar.
Clothing is categorized by the Nice Classification (NCL) in a single class of goods, International Class 25. Ms. Trump has at least 32 active/pending trademarks related to this class, worldwide which allows her to protect her brand against infringers selling similar goods in all the countries in which she has registered the mark. This means she can engage the courts or other authorities to stop others from marketing and selling goods using her brand or one confusingly similar. She may also be able to recover the other party’s profits. That’s why it is smart for Ms. Trump to register her trademark around the world.
I cringe every time I see a brand without a registration. Without a registration on your trademark, others may be able to get away with your profits. Additionally, others can sell poor quality products for cheap under your brand name. When the poor quality product turns sour, the customer is likely to seek you out and ask you to refund the customer’s money. Or, worse, not seek you out and, instead, simply tell everyone he or she knows on Facebook, blogs, product review sites, and everywhere else just exactly what he or she thinks of your product—even though it wasn’t really your product! This is why brand protection is such a critical aspect of any business. Trademark registration is a tiny cost compared to the value it adds to a business and the advantages it provides its owner in policing its reputation. Ms. Trump, ethical issues aside, is a very smart business woman for protecting her brands through trademark registrations. Get your trademark registered sooner rather than later.