Trademark Registration as an asset for MSME and Small Companies

The Make In India Campaign by the Central Government has been launched to help the growth of MSME and Small businesses in India. The aim of the campaign is to make India Atmanirbhar Bharat, or independent of foreign goods and services. The campaign has made the Registration of trademark in India an important asset for small and MSME companies.

There have been cases of Trademark Infringement in local markets such as that of Delhi where their Fake products’ business thrives. There were around many people around 140 been arrested in this case, Thus it is of utmost importance to answer the question of the registration of trademarks in India for small companies.

The blog aims to address the important elements such as:

The Trademark registration for MSME and Small Companies

Importance of TM for MSME and Small companies

How can it be an asset?

Who should apply for the MSME trademark?

Documents required

Benefits of TM for the MSME and Small companies.

What is Trademark Registration for MSME and Small Companies?

The registration of a trademark is an important element for all businesses no matter the size or sector of operation. It is a protective measure against fraudulent means of operation by others to benefit from. Just like all companies, it is of utmost importance for MSME and Small companies to have their businesses trademarked. This will help them in building the brand and the trust value attached to it.

Trademark registration for MSME and small companies is a process in which they can register and secure themselves. They provide legal protection to their brand name, symbol, or logo in India.

Importance of Trademark for MSME and Small companies

Trademark holds an important place in the process to establish a reputation in the market and help build an identity. It prevents confusion among similar products of the reputed and local brands. Some of the importance of Trademark are:

The fees for the trademark for MSME and small companies have been drastically reduced to encourage the formation of more and more companies. This has enabled the process to be cost-effective and completely done online.

TM helps the brand build its identity and trust around the products they sell. It helps build a better reputation around a symbol that the business represents.

It also helps prevent the infringement on the business by others through legal actions.

It can help bring in investments based on the trust value and reputation built through the trademark.

It aims to protect both the customer and the business from the sale of duplicate goods and services.

How is Trademark an asset?

Trademark is a valuable element of any business in the market as it brings a sense of security for the buyers and sellers of goods and services. Just like any other element of a business a trademark can also be bought and sold as per the need of the business. It is just a matter of finding the right buyer and price to sell it.

There are provisions where a business can be sold along with its customers while the person retains the ownership over the trademark to help carry on business. They can use the license for other manufacturers as a means of business. Thus a Trademark can be sold, Purchased, and licensed.

Who should go for trademark MSME registration?

The registration of trademarks in India for small companies is done based on a variety of criteria. Some of the main criteria to apply for an MSME and Small business trademark are:

Small Manufacturing entities who have an investment of lesser than 25 lakhs in the form of plant and machinery. And small enterprises related to services with an investment of less than 10 Lakhs in machinery.

Small manufacturing enterprises who have an investment of Rs. 25 lakh to Rs. 5 crores in the form of plants and machinery. And small service-related enterprises with an investment of around Rs. 10 lakh to Rs. 2 crores in the form of equipment.

Medium manufacturing enterprises- who have an investment of about Rs. 5 crores to Rs. 10 crores in the form of plant and machinery. And small service-related enterprises with an investment of around Rs. 2 crores to Rs. 5 crores in the form of equipment.

Documents required for the Trademark Registration of MSMEs and small companies

Any and every registration needs a certain document to go ahead with the trademark registration process in India. These documents are government certified, Personal, and etc. They are all used to show the proof needed to set up a business. Some of the main documents required for the Trademark Registration for MSME and Small Companies are as follows:

One needs to furnish all the details related to contacting the individual. This includes the contact details, proof of address, and proof of identity for the individual.

They also need to furnish the Certificate of incorporation if it is a company or a partnership deed.

One of the most important documents is the proof of Address of the company that is filing for the registration of a trademark for MSME and small companies.

They will also need to furnish from their side a copy of the trademark or the logo that they want to register under the Trademark Act.

They also require the Udyog registration certificate in order to proceed further in the registration process.

Benefits of Trademark Registration for MSME and Small Companies

Every business comes with its own set of risks and benefits that one needs to accept and proceed with conducting business. The TM for MSME and small companies provide several benefits that help conduct the business hassle-free. They are as follows:

Provides security to the business in the long run.

Helps in getting benefits from the Government subsidies

Contributes towards the building of Goodwill and trust.

It provides the knowledge to differentiate and recognize the goods and services

Gives the owners exclusive rights over the goods and services.

Contributes to the Creation of Assets for the company.

Help get the bank loans without any collateral to be submitted.

Provides protection against delay in the payment.

Help get reimbursements on the ISO Certification Charges.

Gives Protection against infringement of goods and services.

Conclusion

Having a Trademark for the MSME and the small companies has helped the fast growth of the businesses. It has helped promote the idea of "Make In India". It is thus important for the MSME and Small companies to get their trademark registered to conduct the business smoothly without any hassle.

, I am simran baghel, prominent legal consultant dealing with intellectual property violation and opposition of trademarks. Contact via email to me about all IP rights and regulation on email - imsimran460@gmail.com