Why Does a Business Have to Register a Trademark? – Trademark is a symbol that can be thought of as a guardian of healthy business competition. In Indonesia, a trademark has a very important function and role, especially for those of who have a business. How important is the role of trademarks that can prevent the formation of an unhealthy business environment?

Why does a business have to register a trademark?

What is a Trademark?

A trademark is a legally registered element to differentiate a goods or services from another, especially if they are similar in name or type. In Indonesia trademark law following a “first to file” system, this means the party who registers first will have the rights to make a trademark in the Directorate General of Intellectual Property Rights.

Once a trademark is registered, the business owner will receive a certificate as proof of ownership. If they are not registered, they will have difficulty proving their rights if one day their brand is used by another party.

Trademark Function for Business

Previously, you already knew that trademarks have an important role in business, namely as a protective symbol of a business’s identity.

In this section, we will discuss the various functions of trademarks that make them so important for business:

1. Protecting The Brand

The first function of a trademark is to provide legal protection and certainty for the brand owner. If you are involved in a trademark dispute case, having a registered trademark will help you resolve the problem. The reason is that a trademark can be proof of ownership of a brand and will make it difficult for other parties to claim it. Not only that, trademarks also provide protection to the public as consumers of goods or services that use a brand so that they are not fooled by other brands, especially similar ones.

2. Prevent Brand Counterfeiting

The next trademark function is to prevent brand counterfeiting. The existence of a trademark will prohibit other people from creating, imitating or copying a registered brand without the permission of the business owner. So, if another party does this, the registered trademark owner can seek legal protection.

3. Make Business Transactions Easier

Not only protecting brands, another function of trademarks is to facilitate business transactions such as brand licensing agreements, business mergers or acquisitions, and even collaborating with investors. Trademarks can convince other parties that you really have the rights to the brand. Apart from that, having a registered trademark can increase brand value. That way, you can attract the attention of investors to invest capital in your company.

4. Building Brand Identity

Trademarks are an important strategy in the promotional process because they can become your brand’s distinctive identity. Trademarks in the form of logos, colors, packaging designs, and taglines are a unified, interrelated brand identity.

The uniqueness of trademarks used in all marketing elements such as websites, packaging, social media or advertising media will certainly build a strong brand identity.

5. Increase Brand Awareness

After successfully building a brand identity, consumers will start to feel familiar with your product. Well, brand awareness is the next result you will get. Having a trademark that is easy to remember and appears in all marketing channels can help increase brand awareness of your business. By using trademarks consistently during the promotional process, you can increase brand visibility, making it easier for consumers to remember your product.

Types of Trademarks

Trademarks are classified into 5 types based on their shape, here are the types of trademarks that you need to know:

Word Marks

A word mark is a type of trademark consisting of a word or combination of words, letters or numbers that is used to identify a product or service. Generally, word marks are the easiest type of trademark to register and protect. The example of this type of trademark is the Facebook brand name.

Design Mark

The second type of trademark is a design mark. As the name suggests, a design mark is a type of trademark in the form of a particular design or graphic that is used to identify goods or services. Design marks can include logos, symbols, colors, or other graphic elements. Usually, this type of trademark is more difficult to register because the design is more complex and detailed. The examples of design marks are the bitten apple logo on the Apple brand and the mermaid on the Starbucks logo.

Sound Mark

A sound mark is a type of trademark in the form of a certain sound or musical composition that becomes the identity of a product or service. The example of this type of trademark is the lion’s roar which has become the trademark of Metro Goldwyn Mayer (MGM). Similar to design marks, this type of trademark is difficult to register because it requires proof of a valid sound recording and must be distinctive enough to be recognized by consumers as a trademark.

Color Mark

Color can be a powerful branding tool so that business people can use it as a unique visual identity. That is why certain colors or color combinations are also included in a type of trademark called ‘color mark’. The example of this type of trademark is the color sequence in the Google logo.

Smell Mark

Who would have thought that smells could also be registered as trademarks? The smell or aroma of a product can become a trademark if it is very distinctive and different from other products. This type of trademark is usually registered by the perfume, food and beverage business industry, and even household products such as floor cleaners or detergents.

The examples of Trademarks from Successful Brands in Indonesia

When watching TV or listening to the radio, you must have immediately ‘gasped’ about a product when the advertisement was played. Without needing to see or hear the explanation, you already know what product is being advertised. This shows that the company has been very successful with its trademark. In Indonesia itself, there are several brands or products that are quite popular with their trademark characteristics.

Starting from logos to iconic advertising songs, here are some examples of trademarks belonging to successful brands in Indonesia:

1. Indomie

The jingle “Indomie Goreng” belonging to the Indomie brand is often used in its product promotion efforts. The catchy and iconic tune makes this jingle a trademark that is easily recognized by consumers. Not only jingles, brand logos consisting of red, yellow, green and blue have also become trademarks. Just one look, consumers immediately know it’s the Indomie brand logo.

2. Tolak Angin

The tagline has stuck in the minds of Indonesians because of its uniqueness. Tolak Angin once created a marketing campaign with a tagline that was immediately welcomed by its social media audience.

3. Aqua

Whatever brand of mineral water you buy, it will definitely say “Beli Aqua 1, OK?”. Even though it has many competitors, Aqua remains the top-of-mind drinking water brand in Indonesia. From creating a water drop logo, a distinctive ad tone, to each promotion being designed in a distinctive blue color, Aqua has succeeded in building brand awareness with its trademark.

Creating Attractive Trademarks

The key to creating an attractive trademark is to ensure that your trademark is unique, easy to remember, and represents business values.

1. Know Which Trademarks cannot be Registered

The first thing you should know before creating a trademark is: not all brands can be registered.

It is important to understand the reasons why a trademark cannot be registered in order to avoid legal problems in the future. Here are some of the things that cause a trademark registration application to be rejected:

• Has no distinguishing power.
• Contrary to applicable laws and regulations such as religious morality, morality or public order.
• In the form of description of goods, for example the brand “Milk” for milk beverage products.
• Trademarks have become public property like traffic signs.
• In the form of commonly used words.
• Trademarks are similar to other registered marks.

2. Don’t Copy Other Business Trademarks

Trademark is something that is unique and represents a brand. If you imitate another brand’s trademark, consumers may have a bad view and no longer trust your brand. Moreover, you can be subject to sanctions if the trademark you are imitating is already registered. Of course this will made the brand image worst in the eyes of consumers. Therefore, make sure the trademark you create is unique and distinctive.

3. Easy to Remember

Creating a trademark that is easy to remember is the most important thing in this world of increasingly fierce business competition. Trademarks that have differentiating power will attract the attention of potential consumers. Therefore, one of the goals of creating a trademark is to create a lasting impression in consumers’ minds, so that it will be easier for them to differentiate your product from competitors.

4. Describe Brand Value

When creating a trademark, it is important for you to consider how the trademark represents brand value. Trademarks must be able to communicate quality, uniqueness and emotional connection to the target market.

For example, the Nestlé company trademark promotes healthy food products that support environmental sustainability. Nestlé uses earth-related colors and website designs to support the values ​​its brand upholds.

How to Register a Trademark

Now that you understand what a trademark is and the importance of registering a trademark, you may want to do it now before another business claims your trademark.

Here are the steps on how to register a trademark that you can follow:

1. Research

The first step you must take before starting to register a trademark is to find out whether the mark you want to register already belongs to another party. This is intended to avoid the potential for rejection of a trademark registration application as well as other risks such as legal conflicts. One way is to search for brands on the website of the Directorate General of Intellectual Property Rights (DJKI).

2. Prepare the Application Submission Requirements

• Application form that has been filled in by the applicant.
• Examples of 5 trademarks with a maximum size of 9 x 9 cm and a minimum of 2 x 2 cm.
• Prepare a list of goods or services that will be trademarked according to the brand class classification.
• Brand ownership statement.
• Power of attorney (if trademark registration is handled by a third party).
• Photocopy of Resident Identity Card (KTP) and Taxpayer Identification Number (NPWP) for individual applicants.
• Photocopy of Deed of Establishment, Deed of Amendment (if any), Decree of Establishment, SK of Amendment (if any), Certificate of Domicile, Business Permit, Company Registration Certificate (TDP) for applicants in the form of business entities.

3. Trademark Registration

After research and preparation of all requirements are complete, you can immediately register a trademark on the DJKI website.

• First of all, get the billing code and pay the trademark registration fee via the SIMPAKI website. After getting the billing code, then access the DJKI website and select the Application > Brand menu
• Register by clicking the Register button in the top right corner of the login page.
• Next, fill in all the columns required for account registration. If so, click the Process button.
• Then a confirmation pop-up will appear as shown in the image below. Click the Yes button if you feel all the data is correct.
• Wait a few moments until you receive the account activation email from jasa.online@dgip.go.id. If you have received the email, click Activate Account. You will be redirected to the login page to log in to your account.
• On the next page, click the Online Application menu in the sidebar and click the Add button.
• Complete all brand data, then click Save and Continue. If all the data columns have been filled in, click Finish.

How to Extend a Trademark?

Ready to Create a Trademark for Your Business?

A trademark is a symbol that represents your business. Its function is not just to introduce the business, but also make it easier for consumers to remember it. For that, follow the tips we have shared here to transform your business into one of the top-of-mind brands. Starting from not copying registered trademarks, to creating trademarks that are easy to remember and depict brand values.

If you already have a trademark, you can focus on promoting your product. This promotion can be done via social media, websites, or other platforms.

Still confused about how to register a brand?

If you experience difficulties or ignorance in the trademark (brand) registration process in Indonesia, the procedures and legal basis in Indonesia. Contact Indoservice Now!

Indoservice is a secretarial consulting and licensing service company that can assist you in processing your trademark (brand) registration, is trusted and experienced and is committed to providing the best and fast service to meet your needs, don’t hesitate to contact us immediately to get consulting services and offers from us, at Telp. +62877-1449-8500 and email at admin@indoservice.co.id.