5 Trademark Facts

1. Trademarks are the most valuable and important assets your business will ever own because:
   • people use trademarks every day in order to make their purchasing decisions (e.g. purchasing COCA-COLA instead of PEPSI)
   • trademarks symbolize the qualities and characteristics of your products and services
   • trademarks embody the goodwill and reputation that your business has with the public
   • trademarks are essential to the successful advertising and sale of your products and services
2. Trademarks can consist of words, logos, symbols, slogans, and characters. Even color, scent, and sound may become trademarks over time if consumers begin to associate them with a particular product or service.
3. You acquire rights in your trademarks by using them in connection with the advertising and sale of your products and services. But, without a federal trademark registration, you only have trademark rights in the local geographic area in which you are operating.
4. Small and medium-sized businesses are more likely to be sued for trademark infringement because many do not perform a comprehensive federal trademark clearance search prior to adopting and using their trademarks.
5. Forming a corporation, LLC, or other type of business entity does not protect the name of your business (which, in many cases, is your most valuable trademark). Neither does filing a fictitious name registration.