What are Trademarks? / Why is it Important to Protect a Trademark?

What are distinctive signs?

Distinctive signs are, in general, words, combinations of words, images, figures, symbols, graphics, logos, monograms, portraits, labels or others used to identify products, services, economic activities, businesses or commercial establishments in the commercial trade.

The most common signs are trademarks, slogans, trade names, trade emblems, and appellations of origin.

Trademarks, within the legal language, are signs that serve to distinguish the goods or services of a businessman in the market. However, in the broad sense, they can be defined as a synthesis of functional and emotional elements that ensures future earnings based on the loyalty of the clients of a business.

On the other hand, slogans are words, phrases, or captions used in addition to a brand, which in turn serve to increase its distinctive character. Examples of advertising slogans are: "I’m lovin’ it" (McDonald’s); "Just do it" (Nike); "Think different" (Apple) or "La meta la pones tú (The goal's up to you)" (Milo).

A trade name, in turn, is any sign that identifies an economic activity or company. Likewise, a trade emblem is any sign that identifies a business establishment.

Finally, an appellation of origin is a geographical indication, consisting of the name of a country, a region, or a specific place, used to designate a product that originates there and its quality, reputation or other characteristics which are exclusively or essentially due to the geographical environment in which it is produced, including natural and human factors.

Why is it important to protect trademarks and other intellectual property assets?; What are the main advantages that I get when I register my trademark in Colombia?

In the context of a knowledge-based economy, intellectual property is a key factor in the decisions made in companies. New products, brands and developments appear on the market every day as a result of innovation and creativity. Entrepreneurs are the driving force behind these innovations. However, their creative abilities are not always fully exploited, since many companies are unaware of the system of intellectual property and the protection it can provide for inventions, trademarks, industrial designs and other developments.

Providing adequate protection for the intellectual property of a company is a crucial step because it helps turn ideas into business assets with a real market value, and it helps avoid any type of infringement.

In many cases, brands are the most valuable assets of a company, because the good will of the products or services they identify is condensed in them. In Colombia, the exclusive right to use of a trademark is obtained through registration with the Superintendent’s Office of Industry and Commerce (Colombian IPO). In this regard, it should be noted that the commercial registration of companies or business establishments, which is filed with the Chamber of Commerce, is a different process that does not confer any exclusive right in the use of an expression.

By registering a trademark, a company obtains, among other advantages, the possibility of:

• Acquiring an intangible asset with a real book value.
• Having a differentiator that will help advertise their products or services.
• Preventing the use by a third party that wishes to take unfair advantage of its prestige. It is important to underline that trademark infringement is a crime in Colombia.
• Preventing third parties from trademarking it and appropriating the name of the business or its products.
• Granting licenses and franchises.
• Assigning or transferring the rights to the trademark.

What legal consequences exist if I don’t register my trademark?; What are the main disadvantages of not registering my trademark?

Trademarking is not a compulsory procedure, so there are no consequences such as penalties or fines for circumventing it.

However, if a third party like a competitor, a former employee or a former partner, begins using your brand and it has not been trademarked, you will have no legal means to prevent it and, in the worst case scenario, if the third party trademarks it first you may be forced to stop using it.

It is important to note that taking the risk of not trademarking a brand can be much more expensive than obtaining a registration early.

It should also be noted that Law 603 of 2000, currently existent in Colombia, says that managers of commercial and civil societies are obliged to incorporate compliance with the rules of intellectual property in the report that is to be submitted annually to the board of trustees. Contact us.