Understanding the Relationship Between Trademarks and Patents

Intellectual property (IP) is essential to protecting people's and businesses' rights to their inventions in today's innovation-driven economy. Patents and trademarks are two of the most widely used types of intellectual property protection. Although they both work to safeguard priceless assets, their methods and objectives are essentially different. It is crucial for business owners, inventors, entrepreneurs, and legal professionals to comprehend the connection between patents and trademarks.

What is a Trademark?

A trademark is a symbol that can be used to differentiate one company's products or services from those of other companies. Words, logos, symbols, colors, sounds, or combinations of these can all be used as trademarks. They are mainly used in commerce to indicate where goods or services are made, which aids customers in recognizing and selecting between rival brands.
 

For instance, "Just Do It" and the Nike "swoosh" logo are both protected trademarks. They help increase customer loyalty and trust by instantly communicating brand identity and reputation. The branding that makes a product or service identifiable in the marketplace is protected by trademarks, not the product or service itself. As long as the mark is used and the registration is kept up to date, trademark rights may endure indefinitely.

What is a Patent?

An inventor who receives a patent has the legal right to make, use, sell, and license their invention for a set amount of time, usually 20 years from the date of filing. Novel, practical, and non-obvious discoveries or inventions are protected by patents. These could be devices, procedures, materials, or advancements in already-existing technologies.
 

By giving creators a short-term monopoly in return for making the technical details of their invention publicly known, patents are meant to promote innovation. In addition to compensating the inventor for their contribution, this disclosure advances science and technology.

In contrast to trademarks, patents have a time limit and, after they expire, become part of the public domain, enabling others to freely use and expand upon the original idea.

How Trademarks and Patents Work Together

Despite their distinctions, patents and trademarks can work in tandem to give companies and inventors more comprehensive protection.

1. Strategy for Product Launch

A new product may be protected by a trademark for its brand identity and a patent for its functional aspects. For example, a pharmaceutical company might both trademark the brand name that the drug is sold under and secure a patent for a new drug formula.

2. A competitive edge

Building a strong market position can be facilitated by the strategic use of both trademarks and patents. While trademarks guarantee that consumers identify the product with a reliable brand, patents stop others from replicating the underlying innovation. When combined, they make it harder for rivals to enter the market and promote client loyalty.

3. Opportunities for Licensing

Third parties may be granted licenses for both trademarks and patents. A business can create multiple revenue streams by licensing its patented technology and granting the right to use its trademark. This combination facilitates business expansion and adds commercial value, particularly through partnerships or franchising.

4. Value of Long-Term Business

A trademark can be renewed indefinitely, but a patent offers limited exclusivity. This implies that a strong trademark can continue to add value through brand recognition even after a patent expires. In sectors like consumer electronics, where brand loyalty frequently outlasts technological exclusivity, this is clear.

Possible Conflicts and Things to Think About

Despite the fact that patents and trademarks have different functions, businesses may become confused when they attempt to use one in place of the other or misunderstand their scope. For example, if a product serves a utilitarian purpose—which is the purview of patent law—trying to trademark a functional aspect of it, such as its shape or design, may be denied. Inventors also need to exercise caution when making public disclosures.

The invention must be original and unpublished in order to be eligible for patent protection. A patent application may inadvertently be compromised by prior disclosure if a trademarked brand name is used publicly in connection with an invention prior to filing for a patent. That's why companies should create a thorough IP strategy that takes into account the relationship and timing of patent and trademark applications.