Here are the top five reasons that having trademarks can be good for your business and are good business investments.

1. Trademarks are valuable business assets — If created and prudently managed, trademarks can be very valuable business assets, on par with capital equipment, inventory, real estate and other saleable assets. As we discussed recently here at Revision Legal, Forbes media published data showing that, in 2020, Apple had the most valuable set of trademarks — brands — valued at $241.2 billion. See here. Like many assets, the value of trademarks appreciates over time and, unlike patents, as long as a trademark is being used, trademarks can exist indefinitely.

2. Trademarks can be used to attract financing and investors — Like any asset that can be monetized, the value of a trademark can be used to attract investment financing and can make a small business an attractive acquisition target. Many entrepreneurs begin with the hope of achieving success and then being “bought up” by a leading company in their industry. Having strong trademarks and brands can help achieve that goal.

3. Trademarks drive sales and revenue — Another reason that trademarks are good business investments is that they drive sales and revenue. A successful trademark is how consumers “find” your business in a busy, chaotic and crowded marketplace. Being easy to “find” has become paramount for business success as a large percentage of business is now facilitated by online sales platforms. Trademarks and brands are how consumers search online.

Further, a successful trademark creates loyalty among consumers. This drives repeat business and, thus, drives sales and revenue. Consumer loyalty also drives word-of-mouth referrals, again, driving sales and revenue. In a similar manner, a successful trademark signals quality. This is part of what cements customer loyalty. Moreover, the legal protections provided by trademarks allow a business to shut down sellers of counterfeit and pirated products. This can help drive sales and revenue (or at least prevent the diversion of sales and revenue to competitors).

4. Trademarks ease entry into new markets — Another reason that trademarks are good business investments is that trademarks ease entry into new markets. Take a simple example: Your business owns a famous trademark for a delicious type of cookie and would like to expand into the ice cream market. Using the cookie trademark for the new product can make the new product launch a success.

The idea of “new markets” is not limited to new products. Trademarks can also be used in this manner to successfully launch a business into new geographic markets and new sales channels.

5. Trademarks can create additional revenue streams — In a similar way, trademarks can be used to create additional revenue streams via trademark licensing and partnerships. To continue our simple example, instead of launching a new ice cream product, your company can license the famous cookie trademark to an existing ice cream provider. This creates a low-risk revenue stream from the licensing arrangement.

6. Bonus — trademarks can help launch other trademarks — As a bonus, a sixth reason that trademarks are good business investments is that trademarks can help successfully launch other trademarks. Imagine an advertising launch campaign that begins with: “From the Company that brought you everyone’s favorite BRAND PRODUCT, we invite you to try …”

Contact Revision Legal

For more information or if you have questions about creating and registering a trademark, contact the trademark lawyers at Revision Legal at 231-714-0100.

The Legal Benefits of Federal Registration

Beyond the business reasons for trademarking a name, federal registration on the USPTO’s Principal Register confers a set of legal rights that are not available to unregistered (common law) trademark users. Understanding these rights clarifies why registration is not just a business investment but a legal protection strategy.

Federal registration under the Lanham Act (15 U.S.C. § 1051 et seq.) provides:

• Nationwide constructive notice — Under 15 U.S.C. § 1072, registration constitutes constructive notice to all potential users of the mark throughout the entire United States, regardless of where you actually operate. This eliminates the “good faith” defense for any party that adopts a confusingly similar mark after your registration date.
• Nationwide priority — Common law trademark rights are limited to the geographic area of actual use. A federal registration establishes priority nationwide as of the application’s filing date.
• Incontestability after 5 years — Under 15 U.S.C. § 1065, after five years of continuous use following registration, a trademark owner can file a Section 15 declaration of incontestability. An incontestable registration cannot be challenged on grounds of descriptiveness.
• Basis for Customs recordal — Recording your trademark with U.S. Customs and Border Protection (CBP) allows CBP to seize imports of counterfeit goods at the border.
• Basis for foreign registration — Under the Madrid Protocol, a U.S. federal registration can serve as the base application for trademark registrations in over 130 countries.

Trademark Duration and Maintenance Requirements

Unlike patents (which expire after 20 years) and copyrights (which expire decades after the author’s death), trademarks can last indefinitely—provided the owner continues to use the mark in commerce and files the required maintenance documents. These include:

• A Section 8 Declaration of Continued Use, filed between the 5th and 6th year after registration.
• A combined Section 8 and 9 Renewal Application, filed every 10 years after registration.
• Each filing must include specimens of use demonstrating current use of the mark in commerce in connection with the registered goods or services.

Failure to file maintenance documents on time results in cancellation of the registration. Cancelled registrations can be revived in some circumstances, but the process is time-consuming and uncertain. Proactive trademark docketing is essential for any company with a meaningful trademark portfolio.

Building a Trademark Portfolio Strategy

For growing businesses, trademark strategy extends beyond registering a single name. A comprehensive trademark portfolio typically includes the core brand name, key product names, slogans, logos, and trade dress elements that consumers associate with the business. Each trademark must be separately registered to receive independent legal protection. Licensing trademarks—whether to franchisees, distributors, or strategic partners—generates revenue and expands market presence, while quality control provisions in license agreements maintain the legal integrity of the mark.

Contact Revision Legal

If you have questions about the issues discussed in this article, contact the experienced attorneys at Revision Legal. We handle intellectual property, internet law, and business law matters for clients across the country. Contact us online or call us at 1-855-RL-LEGAL.