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Be original, re-branding is expensive!

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Got your .com/.ca domain?   Before proceeding with building a new brand, smart entrepreneurs will conduct a thorough clearance search to determine what limitations, if any, exist on the use of the key elements in their new brand starting with their proposed trademarks.
The main purpose of a clearance search is to determine whether a proposed trademark is available for use. In addition, the search will also help determine whether the owner of the proposed trademark is legally entitled to become the exclusive user. A good clearance search will uncover similar trademarks already in use, which could impose limits on the scope of the goods and services that the proposed trademark can be used in association with. Entrepreneurs should strongly consider selecting an alternative trademark if the results of the clearance search indicate that a large number of similar trademarks are already in use.
At a minimum, the clearance search should include a search of the Canadian Trademark Registry, which is a database of pending and registered trademarks, as well one or more searches for ‘unregistered trademarks’, which include any word, logo or slogan that has been used in association with a product/good or service. Although trademark registration provides greater legal protection, the owners of unregistered trademarks also have legal rights which can impose limitations on the use of a proposed trademark.
             
Entrepreneurs who launch their new brand without a clearance search run the risk that they could be held liable for trademark infringement if any of the key elements in their new brand are found to be confusingly similar with any registered trademarks owned by third parties. Liability for trademark infringement can be found even if the entrepreneur had no prior knowledge of the third party trademark(s). In addition to an award of compensatory damages, the owner of a registered trademark is also entitled to a permanent injunction to prohibit any further use of the infringing mark by the infringer.
Mandatory re-branding is expensive (and embarrassing). A good clearance search to ensure that each of key elements in a new brand will be available for use is a fundamental step in building a successful brand. Securing the .com/.ca domain is just the beginning.

If you have any further questions regarding trademarks registration or protecting your business’ brand, feel free to contact Darryl Bilodeau at MDK’s office today!

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