In 1996, a clothing company in China registered a graphic of a horse identical to Ferrari’s. Ferrari objected, and the Chinese Trademark Office rejected the objection because the local company had applied first. After eleven years of proceedings, in 2007, a Beijing court decided that the horse was not a famous trademark among Chinese consumers, although the name Ferrari was. A world-famous symbol, and still it lost the fight in China. That is what trademark registration is really about.
The Brand Is the Idea, the Trademark Is the Fence
Every customer carries an idea of a company in mind: products, quality, general feeling. That idea is the brand. A trademark is the legal concept built around it, a sign that the law considers worthy of protection and property rights. Almost any distinguishing sign can qualify: a word, a design, a logo, a particular shape or colour, even a sound. Registration gives the owner exclusive use and the right to display the ® symbol. The brand is what gets protected, and registration is the fence around it.
Europe: One Office for a Whole Market
Each EU country has its own intellectual property office, yet the EUIPO has become the central registry for the entire bloc. A single application, filed for a set fee, grants exclusive rights and protection against infringement across the internal market, and almost 120,000 trademarks were registered through the office in one recent year. If a rival tries to register a similar sign for a similar business, the owner can file a notice of opposition directly with the EUIPO. If a rival simply copies the mark, a cease and desist letter is the usual first step, followed by mediation or court action. National courts can even order enforcement measures for an EU trademark effective in every member state.
United States: Quick, Cheap, Homework Required
American registration is rather quick and inexpensive compared with many countries, and even unregistered marks enjoy some protection when used in commerce. Proving such use, however, is hard and rarely cost-effective. Many applicants file an intent-to-use application, backed by a sworn statement, and must show real commercial use soon afterwards. The search for conflicting marks is the applicant’s own responsibility, and the official search system ignores unregistered marks used in commerce, which can even prevail over registered ones. Descriptive marks earn protection only after more than five years of use in commerce.
China: First to File, First to Win
The Chinese system follows the first-to-file principle, so the Ferrari story can repeat itself for any brand. Using a trademark without registering it is legally irrelevant, protection starts at the moment of registration rather than the moment of application, and getting a registration usually takes two to four years. Waiting until expansion begins risks discovering that a local company has already copied and registered the mark.
Small Print Worth Knowing
A registration can be rejected when the sign lacks distinctiveness, for example when the words simply describe the goods or services. On the bright side, a registered mark can grow in value with the reputation of the brand and open the door to franchising, where contractors pay for the right to use it and a whole chain can emerge.
Check First, File Early
Confidus Solutions brings many years of expertise in intellectual property, with lawyers and agents who check availability through a trademark due diligence procedure, register the mark and protect it afterwards, including litigation when needed. A name checked first and registered early rarely ends up in an eleven-year dispute.
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