How Trademarks Generate Revenue for Businesses
Would you believe me if I told you that you could make a minimal investment that generates a return of one hundred thousand times the initial investment? That increase in value is what you can get with trademarks. Trademarks generate revenue for businesses, just ask Apple. Apple is currently the most valuable brand in the world, worth a record $355 billion.
The fact is that trademarks require minimal investment and have potentially unlimited upside. The United States Patent and Trademark Office (USPTO) charges a $350 fee to file a trademark application and our firm’s professional fees for handling the trademark registration process are miniscule in comparison to the future value of the trademark.
Trademarks are valued both on their income history, as well as future sales and profits, meaning they become more valuable as the reputation of the business grows. For example, Apple’s brand increased in value by 35% from 2021 to 2022. Even more impressive is TikTok whose brand increased in value by 215% from 2021 to 2022.
As of 2022, trademarks represent a substantial portion of intangible value for companies, and intangible assets now account for approximately 80% of the value for most U.S. companies. That figure is much larger than it was even a few years ago and it continues to grow fast. The reason that trademarks have become so valuable is because they actually generate revenue.
Brand Recognition Sways Purchasing Decisions and Drives Revenue Generation
Trademarks help distinguish your business and its products or services from competition, making it easier for your business to build trust with customers and ultimately attract and retain them. A trademark can function like a promise, becoming associated with a level of quality or service customers can expect and count on. A trademark is therefore the reputation of a particular brand.
A brand’s perception consists of the experiences, attitudes, and feelings people have with the products or services associated with that brand. Accordingly, positive brand perception and reputation among target audiences is what makes brands extremely profitable. In fact, 77% of consumers are more likely to recommend a brand to others having a positive experience with it. Positive brand recognition therefore sways purchasing decisions and drives revenue generation.
For example, Tesla’s branding message makes it clear that their cars are different from other electric cars because they have a longer range and are of high quality. Tesla, however, is more expensive that its competitors, so it doesn’t focus on pricing in its branding. Instead, Tesla places a great deal of focus on the quality of its cards. By focusing on the quality of its cars and the features that its competition does not have, consumers are not as concerned with the high prices of Tesla cars.
Trademarks Shut Out Competition from Offering the Same Products or Services
Your trademarks prevent the competition from registering trademarks that are deceptively similar to yours. They also give you right the right to sue in federal court if someone infringes your trademarks. These benefits of trademark ownership act as a deterrent for competitors. When your products and services are trademarked, the competition is shut out from offering the same products or services and thus your revenues are maximized.
Trademarks Help Expand Your Business
Trademarks can be bought, sold, licensed, leased, and even used as collateral. Additionally, trademarks facilitate merger and acquisition activity, attract financing, and even enable more effective recruiting. Therefore, in more ways than one, trademarks have not only become a source of revenue, but they also make it easier to expand your business into other industries or geographies.
Don’t Wait to Trademark Your Brand
Trademark rights in the U.S. generally belong to the one who was first to file their trademark application. If you’re serious about your brand and business, don’t wait to trademark your brand. Protect it now! Get in touch with us to schedule free trademark consultation. We can be reached at 1 800-651-7301, via email at email@example.com, or through our Quick Contact form at the bottom of this page. One of our attorneys will get back to you within 24 hours of your submission to schedule a phone consultation, virtual meeting, or an in-person meeting with you.