July 2009

Branding Strategy – Is Your Business Name Protected?

A business name is often fundamental to its branding strategy. A lot of time, money, and thought can be expended while creating that business name. An often overlooked aspect of this process is protecting the business name when it is desirable to do so. Business owners frequently believe that because they have formed a business entity with that new name or filed an assumed name certificate that they are lawfully permitted to use the new name in their branding. This is an incorrect belief and may lead to problems in the future. The new business may need to change its branding or compensate another business for the damage to that business’ brand.

The standards and requirements for a state permitting a business name to be used is different than the standard for granting a trademark registration. A business may be formed for tax, legal, securities, or other many other non-branding purposes. A business name used for those purposes is not used for branding and not generally publicized and warrants a lower standard in registering that business name. Contrast that scenario with a business name which is explicitly used in advertising and in connection with sales of goods and services to consumers. In that scenario, the business should analyze its trademark issues. Thus it may be prudent to perform a search and submit a trademark application on the new business name.

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Why is it important to brand my Twitter account?

In order for branding to be effective you must, must must be consistent across all mediums. This includes Twitter. Think about it, your clients, prospects are accustomed to seeing your marketing materials and web site branded a certain way including color usage, fonts, logo etc. If they show up on your twitter page an it has the standard twitter template designs you are looking just like everyone else on twitter, some several million people I would guess.

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Create brand value through a trademark.

Coca-Cola & Dasani logo header

Can a trademark have value separate from the company’s physical assets?

Trademarks can be a valuable asset to a company. The trademark “COCA-COLA” has been estimated to have a value ranging from twenty to seventy billion dollars under various valuation models. Commentators have noted that if all of the physical assets of the company were destroyed (e.g. the buildings, the trucks, the bottling companies), the “COCA-COLA” trademark and other intellectual
property  would be sufficient valuable to enable positive cash flow within one year. In other words, its branding and other intangible assets would comprise all that is necessary to fuel its rebirth. The time and money that the company has spent on its brand has built recognition and loyalty that support demand for its products worldwide.

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