Tuesday, August 28, 2012

Why Registering Your Trademarks is Money Well Spent.

Every day we are asked "How much does it cost to receive a U.S. Trademark Registration?"  In reality it is not that expensive.  More importantly, given the cost to re-brand if you do not and can you afford not to? 


Government Filing Fees

The United States Patent and Trademark Office (“USPTO”) charges either $275 or $325 per class of goods or services to file an application for a U.S. Trademark Registration. Whether the cost per class is $275 or $325 depends upon system the applicant uses at the USPTO.

The traditional filing system, known as the TEAS system, permits applicants to write their own identification of goods or recitation of services with which they wish their trademark to be registered. For instance, Nike would seek registration for a trademark using an identification of goods such as “athletic shoes” in International Class 25. If Nike writes their own identification of goods using the TEAS system the cost is $325 per class of goods or services in which the application is filed.
We’ll explain below what “per class” means.

As an alternative to the traditional system, in recent years the USPTO initiated a new system known as the TEAS PLUS system. The TEAS PLUS system is designed to both reduce the cost of the trademark process while speeding up the registration process. In this regard, provided that applicants meet certain specific criteria and use only identifications of goods or recitations of services from a pre-approved list the cost to register their marks is reduced from $325 to $275 per class of goods or services.

Accordingly, the base price to apply to register a trademark with the USPTO is either $325 or $275 depending upon which system is used.  Of course we here at The Trademark Company almost always are able to get our customers the lower filing fee of $275 per class.

U.S. Filing Fees Are Per Class

Next, applicants should understand that the USPTO’s filing fees are per class. U.S. Trademark Registrations are goods or services specific. This means that when you seek a U.S. Trademark Registration you must specify the goods or services with which the trademark is, or will be, used.

For instance, Nike undoubtedly owns registrations for NIKE in Class 25 for running shoes whereas McDonalds retains registrations in Class 42 or 43 for restaurants.

There are currently 45 classes of goods and services recognized by the USPTO. Goods and services are defined into these 45 specific classes to both create certainty for the USPTO in regard to the goods or services for which specific Trademark Registrations will apply but also to allow for greater uniformity among international trademark offices of various countries as the world moves toward a unified global system of trademark protection.

As such, an application by a music band who also intends to sell CDs of their music would apply to register a mark in two classes:

Class 9: Pre-recorded music CDs.

Class 41: Live performances by a music band.

If they file using the TEAS system, their total filing fees would be $650 (2 classes x $325 per class). In the alternative, if they are able to use the TEAS PLUS system their filing fees would be reduced to $550 (2 classes x $275 per class).

As such, prospective applicants must be savvy in regard to not only the system which they use but also the classification system and how many classes their requested application may fall into to understand the true cost of the U.S. Trademark Registration for which they seek.

The Distinction Between Use and Intent-to-Use Applications

Next, if your trademark is in use at the time of filing the application should be filed as a use-based application under what is known as Section 1(a). However, if the trademark is not in use as of the date of filing it is required to be filed as an intent-to-use application under Section 1(b). If it is filed as an intent-to-use mark, additional fees will apply in order to get the mark registered.

In short, should the USPTO deem the application worthy of registration rather than receiving a Certificate of Registration like a use-based application, an intent-to-use application receives what is known as a Notice of Allowance.

The Notice of Allowance is akin to a permission slip which allows the applicant to complete the registration process and receive its Certificate of Registration upon filing what is known as a Statement of Use. This subsequent filing, however, requires an additional charge of $100 per class of goods and services.

Accordingly, if you have a 2-class intent-to-use application filed under the TEAS system the fees to register the mark would look something like this:

Application Fee = $650 (2 x $325);

Statement of Use Fee = $200 (2 x $100);

Total Fees to Register a 2-Class Intent-to-Use Application = $850.

But it does not end here. We mentioned above that to file the Statement of Use costs $100 per class. Of note, from the date of the Notice of Allowance an applicant has only 6 months to file their Statement of Use establishing use of the mark. If the mark is yet to be in use by this date an applicant may file for an extension of time in which to file their Statement of Use. An extension of time to file the Statement of Use costs $150 per class. An applicant may file up to 5 extension requests per mark or may extend the due date of the Statement of Use for up to 2 and one half years (5 x 6 months) following the conclusion of the initial Notice of Allowance Period.

So let’s look back at our example above changing the situation slightly to reflect a need to file the Statement of Use 8 months after receiving the Notice of Allowance. Recall, this would require one extension of time to file the Statement of Use as an applicant is only permitted 6 months to file the same following receipt of the Notice of Allowance. Under that scenario the same would look something like this:

Application Fee = $650 (2 x $325);

Extension of Time in Which to File Statement of Use = $300 (2 x $150);

Statement of Use Fee = $200 (2 x $100);

Total Fees to Register a 2-Class Intent-to-Use
Application with One Extension of Time = $1150.

As you can see, the base price to apply for a U.S. Trademark Registration can vary widely depending upon the (1) USPTO system used, (2) the number of classes for which the application is made, (3) whether the application is use-based or an intent-to-use, and (4) whether, if an intent-to-use, an extensions of time are required prior to filing the Statement of Use.

Law Firms and Online Filing Services

We would be remiss if we did not mention the cost of assistance in the trademark filing process. The cost to have a law firm and/or filing service file for a trademark on your behalf typically ranges from $149 to well over $3000 depending upon the size of the firm or company and the level of experience they retain in the trademark arena.

The obvious expense to using a law firm or filing service is the additional costs involved in employing the same. The benefits, however, typically far outweigh the burden of the costs insofar as a skilled firm can not only reduce or minimize the costs involved as referenced above but also retain invaluable experience in what can be a complex system to garner a U.S. Trademark Registration.

Often the cost of the legal services are fully offset by the firm or company’s ability to have an applicant’s application filed in the TEAS PLUS system versus the TEAS system, reducing the number of classes filed for, and even working with the applicant to determine whether an application may be filed as a use-based application versus an intent-to-use or otherwise.

Moreover, as the USPTO’s filing fees are non-refundable most consumers prefer the added confidence of knowing that their application is being prepared and prosecuted by a seasoned professional.

Infringement and Re-Branding

One of the main reasons businesses decide to register their trademarks is for security.  Security in knowing their brand has been vetted by the USPTO.  Security in knowing that they have quieted title in their brand.  Security in knowing that with a U.S. trademark registration a company is far less likely to be forced to re-brand due to infringing upon another company's trademark.

After all, no matter what the cost of the registration may be above, there can be no doubt that it is far less than the cost to re-brand after years of building your brand under your trademark.  Moreover, this does not even address the loss of business goodwill your company will experience by losing its name.


Summary

In conclusion, there is much to know about the costs involved in filing for a trademark. Whether it is that the costs involved are dependent upon the filing system used, the number of classes filed for, or whether the application is filed once use has begun or not will all affect the price of your trademark application. Additionally, most consumers prefer to rely upon the experience of seasoned professional to sort through the filing costs, reduce filing fees whenever possible, and advise them as to the availability of their mark prior to incurring non-refundable filing fees.

Without assistance, the cost for a U.S. Trademark Registration can be as low as $275 for a one-class mark filed using the TEAS PLUS system. However, if the applicant does not satisfy all of the requirements of the TEAS PLUS system additional fees will apply.

In the alternative, applicants may seek to assistance from an experienced law firm to assist in the registration process. In that case they should expect the lowest cost to be in the nature of $424 for a One-Class Mark filed using the TEAS PLUS system ($275 for the USPTO filing fee, $149 for the law firm’s services).

But there can be no doubt that the costs of trademark registration are clearly justified when you consider the alternatives that could result if you do not protect your brand.  So get your trademarks registered.  It is well-worth the expense.

TheTrademarkCompany.com

Wednesday, August 22, 2012

Is the Cost to Register a Trademark Going Down?

August 22, 2012

The U.S. Department of Commerce’s United States Patent and Trademark Office (USPTO) is considering lowering trademark application fees for all applicants willing to file and communicate electronically with the USPTO.

Specifically, the USPTO is considering encouraging complete electronic communications by reducing the TEAS Plus filing fee, which currently stands at $275 per class. TEAS Plus is the least expensive application option, and requires electronic communication as well as a complete application and pre-approved identification of goods/services upon filing.  It is the option used by The Trademark Company for the vast majority of its clients.


While 99% of applicants file under TEAS or TEAS Plus, only 76% of applications remain fully electronic throughout the entire process. To increase efficiency, the USPTO is looking to incentivize end-to-end electronic processing.

While these changes may not be placed into effect until next year, if at all, when, and if, they occur, The Trademark Company will always pass along these savings to our customers so that they continue to incur the lowest filing costs possible.



The Trademark Company

Tuesday, August 21, 2012

What’s in a Name? Everything. So Protect It!

Are your trademarks protected?  Are they really protected?  Is the brand you are about to launch secured?
All too often businesses launch without considering “Can I use this name?”  “Is it legal to use that slogan?”  And it can cost you.  It can cost you plenty.
When deciding upon a new business or a new product or service line for your existing business always make sure to (1) clear use of the trademark or slogan and then (2) protect it with the U.S. Patent and Trademark Office.
If you do not clear use of the trademark, your brand name, you could be adopting a trademark that is confusingly similar to another’s to the point that weeks, months, or years after launch – after your brand is becoming successful – you may be forced to abandon your trademark and re-name the product or your company entirely.  So be smart.  Clear the use of your new trademark before you start using it.   
You will be glad you did.
Second, once it is clear file and protect it with the U.S. Patent and Trademark Office.  This way you will quiet title in the trademark according to the official government agency charged with the registration of trademarks here in the U.S.  Registration of your trademark not only puts all on notice in the U.S. of your claimed rights in the trademark but also makes the enforcement thereof far simpler and more effective.
So don’t spend your blood, sweet, and tears developing a brand that could infringe upon another.  Pick a trademark that is available and then protect it.

Monday, August 13, 2012

The Trademark Company Named to Inc. 500|5000 List of the Fastest–Growing Private Companies in America

We were pleased to learn today that for the 3rd straight year The Trademark Company has made the Inc. 500|5000 list of the fastest–growing private companies in America.

With this accomplishment The Trademark Company joins the rarefied company of enterprises that have appeared on the Inc. Magazine annual list multiple times, many of which have grown to become national icons.

We here at The Trademark Company would like to extend our heart-felt thanks to all of those who have worked so hard to achieve this distinction and to our customers for being our driving force to work even harder on their behalf.

The Trademark Company

Wednesday, August 1, 2012

Patents, Copyrights and Trademarks: What a Start-Up Needs to Know

We are often asked do I need a trademark for my slogan? Can I patent my idea? How can I protect my website from copying by others? Here’s a quick rundown of the various protections every business should be aware of in protecting their intellectual property.

Trademarks
A trademark includes any word, name, symbol, or device, or any combination used, or intended to be used, in commerce to identify and distinguish the goods or services of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name. It can be your company’s name (e.g., NIKE) or its main advertising slogan (e.g., JUST DO IT). No matter what you wish to use as a source identifier of your goods or services it should be Registered, if possible, with the U.S. Patent and Trademark Office (“USPTO”) to maximize the protection available under The Trademark Act of 1946. Trademarks can last forever so long as they are Renewed as required by the USPTO.

Patents
A patent is a grant of property rights by the U.S. Government through the USPTO. The patent grant excludes others from making, using, or selling an invention in the United States that receives patent protection (e.g., a new and innovative design for a tooth brush, mechanical part, or otherwise). Patents, unlike trademarks, are subject to limits lives. For instance, a utility or plant patent in force on June 8, 1995, is subject to either the 17 year term from grant or the 20 year term from earliest effective U.S. filing date, whichever is longer. A design patent term is 14 years from patent grant.

Copyrights
Copyright is a form of protection provided by the laws of the United States (title 17, U. S. Code) to the authors of “original works of authorship,” including literary, dramatic, musical, artistic, and certain other intellectual works. Copyrightable works include the following categories:

1. Literary Works (e.g., books, articles)
2. Musical Works, including any accompanying words (e.g., music, lyrics)
3. Dramatic Works, including any accompanying music (e.g., plays, screen
plays,scripts)
4. Pantomimes and Choreographic Works (e.g., dance routines)
5. Pictorial, Graphic, and Sculptural Works (e.g., works of art, statutes, AND
web sites)
6. Motion Pictures and other Audiovisual Works (e.g., movies, television
broadcasts)
7. Sound Recordings (e.g., albums, CDs, etc.)
8. Architectural Works (e.g., building designs and plans)

As always, if you have any questions about these or any other matters just Contact Us or post your questions or comments right here on our blog.

The Trademark Company

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