The role of a trademark
A trademark was to indicate source or origin. It had significance apart from the business. Which it was related. The trademarks now play a role in expansion of operations of the properties. In various countries towards the profit maximization goal. Were they merely individualizing his products or services. Trademark serve as profit centers as they facilitate entry of goods or services into new markets. It also enhancement of product range covered by the trademark.
Modern role of trademark
The two main kinds of trademarks could be found they were.
The Merchants trademarks : consider as forming the partnership of the goods were secured. The production trademarks whose reason were to specify origin or source. The merchants marks were strictly proprietary marks. Therefore their only function was to establish ownership.
The production marks: is used by the guilds or associations to guarantee quality. This quality is to control entry to particular trades. The basic difference between medieval and modern trademarks is that medieval marks were compulsory. The modern trademarks are an benefit for the producer. In earlier times whereas the trademarks were liable.
procurement of Monopoly
The major role of trademarks today is the acquisition of monopoly or exclusive right to use a trademark or brand name in as many countries for many products. In relation to which is it used for registered as possible. Trademark owners strive for non-use of any similar mark by others like on various services or goods by taking options to legal proceedings. It may be honest or may be in the nature of collide suits and prepared the incident. The cost element of taking the proceedings permit.
The trademark rights are acquired by owners simultaneously. The use of trademarks on specified specified goods or services. The trademark proprietor, by dynamic advertising campaigns in collaboration with licensees, creates brand loyalty and establish product differentiation. This normally results in establishing an enviable goodwill and market power which can nip competition in the bud and can successfully place a barrier to the entry of new firms in that particular field of activity.
procurement of Goodwill
Over a period of time, the proprietors of trademarks bring in goodwill. It is not only for trademark. But also for the Trade Name. An enterprise with a reputed Trade Name can successfully indulge in brand proliferation also utilizing the goodwill of the first referred trademark. By such actions more brands from independent enterprises get restricted and the sources of supply of different brands into the market are thus reduced.
It is well-known that competition among brands eliminates price competition. Non price competition through brands is compared to selling dreams in a perfume bottle with that corporate sector gets large resources at its disposal to spend in various promotional activities.
Terrorize the use of trade marks and right to quality control
A Trademarks behave another role of far-reaching effect. The trademark owner of his bargaining strength in giving technical know-how compulsory requires other persons to use his trademark against royalty or other indirect costs of advertising, promotion and maintaining and building the commercial value of the trademark.
Trademark owners who own patened or unpatened technology to obtain another type of benefit from trademark registrations. While transferring the right to use a particular technology. A condition is imposed that all the production achieved with the use of that technology. This shall be sold under the trademark of such owner.
As soon as a trademark license is envisioned. It gives the right holder of the trademark or technology more power which is not conventional. In relation to technology transfer licenses. The trademark proprietor is placed with the most fatal legal right of quality restrictions over the licensee. Which gives exemplary powers to the trademark owner for registration. The power to exercise quality control can be used to resort to many restrictive business practices with increase the cost of the license manifold for using the trademark and the technology of costs are in inclusion to direct or the stated costs.
The market and goodwill built by the licensee always miserable to the trademark proprietor. The most virulent cost to the licensee is the capability or right of the trademark owner to terminate the license to use the registration trademark. It can crash the whole market of the license. It can work to his detriment if the owner starts marketing under the same trademark himself or allocations the license of the trademark to opponent of the licensee. In the absence of the market for his products in Chennai. Even a superior technology or a patent is of no avail. The licensee unit itself may have to be closed.