This is a guest post by Ryan Bernardo of BraunLegal.
Your crowdfunding campaign’s intellectual property (“IP”) is incredibly valuable, especially your trademarks. A trademark is any word, name, symbol, or device that you use to differentiate yourself from others in the market. This will usually include things such as your product or campaign name, logo, and even packaging.
1. Common Law vs. Federal Registration for Your Trademarks
Trademarks come in two varieties, those that fall under state common law and those that are federally registered.
Using a trademark in commerce will often get an individual or business certain common law trademark rights. Simply using the mark is sufficient to establish these common law rights and no additional registration or expense is required. However, the rights you get can vary greatly from state to state, and enforcement of your rights can be limited.
Federal registration, on the other hand, provides you with a unified set of rights that are easily enforceable across the entire country. Your federal registration provides you with the exclusive right to use that mark throughout the entire country! Plus, you now have the ability keep others from entering the same market with the same or similar name.
2. The Downside of Common Law Trademark Rights
You might be wondering why, besides the benefits above, you should spend additional resources from your campaign on federal registration. You might be thinking, “Aren’t my free common law rights enough?” Not necessarily, and here is an example why:
A recent trademark case called Hotel Melia serves as a strong illustration as to why federal registration is so important. Hotel Melia had been using their name in Puerto Rico since the 1890s, but had never federally registered the mark. In 2007, a new company opened a hotel in Puerto Rico that they called the Sol Melia, however, they DID federally register their mark. The outcome of the case was that regardless of the fact that Hotel Melia had used the name for over 100 years, Sol Melia had the exclusive right to use the name throughout the United States because they took the time to register their mark.
3. Should you Register Your Mark?
Federal registration of your mark is an incredibly powerful tool. With the global reach of crowdfunding platforms it is more important than ever to make sure you obtain protection for your rights. Before your campaign launches take time to consult an experienced IP lawyer and make sure your rights are protected. Being informed from the start means you can budget for these, and other legal expenses you will encounter in the crowdfunding process.
Have a Question?
Leave a comment below. Let me know if you found this article to be helpful for your campaign.
About the Author
Ryan Bernardo is Chair of the Intellectual Property Practice Group at Braun Blaising McLaughlin & Smith, P.C. (BraunLegal), where he draws on his experience as an entrepreneur, IT consultant, and now intellectual property attorney to provide valuable legal insights on crowdfunding related matters. Ryan uses his experience to consult with campaign owners on a variety of legal matters related to launch, funding, and completion. The materials provided in this post are for informational purposes only and not for the purpose of providing legal advice. Please contact Ryan directly if you have specific legal questions regarding your situation.
