Does Trademark Registration Lead to Increased Profits?

There are very few truths in business and in the law, but there is frequently a direct link between trademark registration and increased profits. It allows you to create brand awareness, goodwill and name recognition.

• Trademark registration can lead to increased profits.
• Online gaming grew from $26.7 billion in 2016 to $30.7 billion in 2017.
• Distinguishing yourself from your competition, by implementing a trademark strategy, especially in a competitive market can increase profits now and in the future.

Trademark registration is the first step in a comprehensive strategy to protect your brand and increase profits

I recently read a trade article regarding the correlation, if any, between trademark protection and an increase in revenue.  This particular article focused on virtual worlds and massive multiplayer online gaming (MMO). 

How much did the market grow?

This is a market that grew from $2.0 billion in 2009 to $2.6 billion in 2010 and from $26.7 billion in 2016 to $30.7 billion in 2017.  After subjecting their data to an independent study it indicated that between the period of 2005 through 2009 there was a sharp increase in the trademark filings for virtual goods, virtual currency and virtual worlds and that those with trademarks covering core virtual brand aspects (i.e., signs, logos, icons or symbols that consumers know them for) show a higher than average revenue per user.

This is particularly true in places like the United States where consumers are more willing to pay for virtual goods, so in these places trademark protection appears to have a more significant impact than in other markets where consumers may not be willing to pay as much.

Trademark registration leads to increased profits, greater name recognition and greater market share.

What’s the benefit of an overall trademark strategy?

The study found that those companies with a trademark strategy who operate in this competitive market (that only appears to be becoming more competitive) are best positioned to distinguish from their competition and profit from their brands in the future.

Whether you need trademark registration or to develop an overall trademark strategy you will want to consult with a trademark attorney who can protect your rights.

Contact an attorney with Veritas Business Law, LLC for a free consultation.