DANGERS OF USING UNREGISTERED TRADEMARKS AND BENEFITS OF REGISTRATION
What is a trademark?. Different authorities have given the meaning of a trademark. The Trademarks Act 2010 of Uganda defines a trademark to mean: a sign or mark or combination of signs or marks capable of being represented graphically and capable
of distinguishing goods or services of one undertaking from those of another undertaking.
For every successful and time tested corporate brand (trademark), that everyone wants to associate with, behind the scenes, a lot of effort and resources have been sunk into intricate trademark development and aggressive protection. Company brands and trademarks are amongst a company’s valuable assets. A study done by the UK’s IP office reveals that an estimated 6% of most company investments are spent in company brand protection.
Branding starts and centers around your use of distinctive images, symbols, colors and styles, and caricatures, which most appropriately separate and preposition your goods, or services as unique from others on the same market, giving both a protection to your customers and also acquiring brand image and build up brand loyalty amongst your consumers.
Dangers of using unregistered trademarks
Until a name or logo is registered as a trademark, you cannot be certain that it belongs to you. If another person or business registers the mark first, you may find yourself in the highly inconvenient and very costly position of becoming embroiled in litigation and potentially having to withdraw your products, redesign your packaging and marketing literature, and pay damages or an account of profits to the registered trademark owner. Besides the quantifiable costs, you could also risk any goodwill that you may have established in the brand name over the years, over a product that you have painfully taken years to create, just because you didn’t take the extra step of registering it.
Available research from world intellectual property organisation shows that over 80% of SMEs fail to register their trademarks. The majority think that it is not important to their business, with others citing lack of time, lack of understanding of the process of registration and costs associated with registration. By failing to register their trademarks, these businesses are not only damaging their brands and reputation, but also put their businesses at risk and in the end, loose out in the market battle.
Benefits of trademark registration
When you register your trademark, you ensure that you are in a position to prevent others from using or registering a similar one and that is the key to maintaining a strong brand.
Section 34 of the Trademarks Act 2010 is to the effect that a person may not institute proceedings to prevent or to recover damages for an unregistered trademark. Section 35 saves the right of action against a person for passing off goods or services as the goods or services of another or the remedies in respect of the right of action.
Protection under section 35 is only afforded to an unregistered trademark where a mark has acquired a substantial reputation. Even then, the hurdles to be over come in order to succeed in enforcing those unregistered rights against a third party, and the associated costs, are such that many businesses are inhibited from taking the legal action, and those that do, often fail.
By registering its trademark, a business greatly improves its ability to prevent a third party from using or seeking to register conflicting marks, and to seek appropriate remedies, such as an injunction and or damages, in the case of an infringement.
Trademark registrations are also valuable, transferable assets, which can be used as negotiating tools in business transactions and as security for financial transactions. Intellectual capital is recognised as the most important asset of many of the world’s largest and most powerful companies; it is the foundation for market dominance and continuing profitability of leading companies. It is often the key objective in mergers and acquisitions.
What to consider while developing a good trademark
Before coming up with the appropriate idea of a trademark, ask yourself, what your particular brand is and what word best expresses your brand. Also imagine what typography conveys the feeling of your brand. For example, what colors are consistent with your brand’s personality?. Your trademark can include a graphic, and if so, choose graphic expression which will best complement your brand. Finally, ask yourself the hard question on whether the trademark helps distinguish your brand from the competition?.
It is important that every business, however small, urgently puts in place an effective and proactive trademark development and registration strategy to ensure that all its brands are properly protected, and that those it enters into contract with to use the those brands are not going to land them in trouble with other trademark owners.
The use of effective trademark watching and monitoring procedures is also fundamental to the maintenance of a strong and enforceable trademark in the market; it helps to identify potential sources of conflict, including potential infringers, and prevents the dilution of one’s trademarks.
Where to find help
You should seek the advice of a trademark attorney for help in developing or implementing your trademark protection strategy. The trademark attorney should be in position to guide you through the trademark selection and registration process and advice on all aspects of the protection and enforcement of your trademarks.
Angualia Daniel
Managing Partner
M/s Angualia Busiku & Co. Advocates
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)
Investment Licences In Uganda
WHAT YOU SHOULD KNOW ABOUT INVESTING AND INVESTMENT LICENCES IN UGANDA
According to the Investment Code Act 1991, Section 15 (1 and 2), Uganda Investment Authority (UIA) shall issue to the applicant an investment license which shall; Authorize the holder of a license to make all arrangements necessary for establishing the business enterprise described in the license. The Executive Director shall liaise with Government Ministries and departments, local authorities and other bodies as may be necessary in order to assist an investment license holder to comply with any formalities or requirements for obtaining any permission, authorizations, licenses, land and other requirements for implementing the business enterprise.
After a company has been incorporated/ registered (foreign company) in Uganda, it is eligible for an investment license provided its capital investment exceeds US$ 100,000 (Foreign firms) and US $ 50,000 (Local firms).
Application for an investment license is made to Uganda Investment Authority. After all required documentation is submitted along with the filled application form, the investment license is issued within one week.
Documentation required includes:
There are some sectors that require regulatory approvals from the relevant entities and these include: energy generation, mining, banking, air transport, pharmaceuticals production, education and health. In most cases, the regulatory approvals/permits/or licenses must be acquired before applying for the Investment License.
BENEFITS OF AN INVESTMENT LICENSE
Benefits of an Investment License to the Holder
The benefits that accrue to the holder of an investment license include:
Benefits of an investment license to the Government
The licensing of investments in Uganda provides vital information for the Government in the following areas:
INVESTMENT (TAX) INCENTIVES IN UGANDA
The absolute exemption on plant and machinery only applies to plant and machinery used in the agricultural sector. The plant and machinery items are specified under paragraph 1(s) of the second schedule to the VAT Act.
Other importers of plant and machinery benefit from VAT deferment provided under the statutory instruments provided in the VAT Act.
Other incentives under the Income Tax Act include; Income tax exemption on exporters of finished consumer and capital goods produced in Uganda as provided under Section 21(1)(y) of the Income tax Act; and Income tax exemption on income derived by the person carrying on agro-processing.
In addition, investors also benefit from industrial building deduction as per Section 29, and for those in agricultural sector Section 35 provides for more allowable expenditure.
Other reasons why you should consider investing in Uganda
Angualia Daniel
Managing Partner
M/s Angualia Busiku & Co. Advocates
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)
Determine the Value of Your Trademark
HOW DO YOU DETERMINE THE VALUE OF YOUR TRADEMARK?
In general, the value of a trademark is based directly on the trademark’s earning power. Where little or no income history is available, however, imagination, common sense and experience may be the best guides to apply in ascertaining a trademark’s value. In addition, studies of the industry in which the trademark will be used or the products marketed, market surveys of probable sale prices and expected profits, and opinions of industry experts may also be applied.
The value of a trademark lies in the goodwill associated with that trademark. Goodwill is an intangible asset that provides added value to the trademark owner’s worth (such as a recognizable brand). However, in many cases it can be quite difficult to ascertain the goodwill and then place a true value on it at a point in time, because of the many variables that must be considered. For example, reasonable people can differ on future expectations, such as opportunities for increasing the value of the trademark and competitive threats and marketplace risks to the trademark. Read more
HOW DO I HAVE A TRADEMARK RECOGNISED AND PROTECTED IN ONE OR SEVERAL AFRICAN STATES
Regional protection of trademarks in African states that are member states to the Banjul Protocol on Marks is achieved through registration of a trademark(s) in a member state (s) through ARIPO secretariat offices or directly through the Intellectual Property Office of the member state. The African Regional Intellectual Property Organisation (ARIPO) which is an Intergovernmental Organisation for Cooperation among African States on Matters of Intellectual Property is entrusted with the registration of marks and the administration of such registered marks on behalf of the Contracting States.
Why registration of an NGO may be declined
Why an application for registration of an NGO in Uganda may be declined
The Bureau may refuse to register an organization for several reasons among them
Different types of marks which can be registered in Uganda
Exclusive Rights to Use Trademark as a Whole
It is a well established principle in trademarks law that the exclusive right to use a trademark applies to its use as a whole and not in parts. Many a times a trademark can be a composite trademark having various elements in it, and when the trademark is registered, the protection is provided to the mark as a whole and not in parts.
Why You Should Hire A Trademark Attorney
CONSIDERING TRADEMARK REGISTRATION IN UGANDA? THIS IS WHY YOU SHOULD HIRE A TRADEMARK ATTORNEY
Trademark owners who attempt to file and prosecute their own trademark applications work on the believe that by not hiring a trademark attorney, they will save on the attorney fees. From experience, these trademark owners end up spending more money in the process. They make many mistakes in the process and pay trademark attorneys later on to correct the mess. It is understandable that many times, this group of trademark owners are small companies in their infancy, or individuals that are trying to minimize legal fees while attempting to obtain valuable trademark protection. Nevertheless, there is significant long term damage that can be caused by filing your own trademark, or relying on a one-size-fits-all service provided by non trademark attorneys.
I have attended to many clients that have filed their own trademark applications, and some that have used non-attorney services. These clients are usually up against some very tough rejections from the Trademark Office, or are having other difficulties with the trademark prosecution process. Inevitably, these clients wind up spending more money to pay an attorney to fix the application, or to re-file the application, than it would have cost to hire an experienced trademark attorney to file the application for them. In over 60% of the cases, I have had to file fresh trademark applications on learning that the non-trademark attorney did not file the right documents or missed a crucial stage in the process that rendered what was done of no effect.
Trademark owners may believe that filing and prosecuting a trademark application is a simple process. Admittedly, the filing of a trademark application is much more straight forward if the necessary steps are followed properly. Simple steps like trademark clearance may be ignored only to realize at a later stage that the trademark you are filing is already in existence or that it is similar to what is already in existence. The result is that you will face oppositions to your Applications. Even if you succeed in filing, the earlier registered trademark owners petition trademark office for cancellation of your trademarks.
Proper filing and issued trademark can provide the trademark owner with significant protection for their intellectual property. For example, trademark portfolio for “Coca-Cola”. Coca-Cola has hundreds of trademarks and trademark applications all over the world. The brand is protected by numerous trademarks.
Trademarks are so important because they identify the source of a particular good or service. The trademark owner, if they do it right, has associated their good or service with a particular level of quality that they work hard to maintain. If the trademark owner does not protect their trademark, they may open themselves up to the danger of an inferior quality good or service being distributed under the same or similar name. Such acts cause consumer confusion in the marketplace and leads to dilution of the earlier trademark that was not protected through proper registration. Therefore, it is important for the trademark owner to file the application properly. The trademark owner should not rely on the services of non-trademark attorney to help them through the registration process.
The safest bet is to hire an attorney familiar with trademark prosecution to handle protecting your trademark assets. Of course, this means paying a legal fee, but I believe the legal fees involved in having an experienced attorney prepare, file and prosecute a trademark application pale in comparison to the cost of not having a properly protected trademark. This post is prompted by the recent increase I have encountered of fixing, or sometimes re-filing, trademark applications that have either been filed by the trademark owners themselves, by attorneys that do not specialize in trademark prosecution, or using the “assistance” of some websites that purport to file trademark applications for the trademark owner, without providing legal advice.
Trademark registration procedure in Uganda
Uganda Trademark search – Why you need the study
a) Class Identification: Trademarks are registered in classes; the search report should define the classes for your trademark according the description that you provide the trademark attorney.
b) Trademark Search: Based on defined Classes, trademark attorney should perform an in depth search of existing registered trademarks, identifying the ones that have graphic/phonetic similarities.
DANGERS OF USING UNREGISTERED TRADEMARKS AND BENEFITS OF REGISTRATION
DANGERS OF USING UNREGISTERED TRADEMARKS AND BENEFITS OF REGISTRATION
What is a trademark?. Different authorities have given the meaning of a trademark. The Trademarks Act 2010 of Uganda defines a trademark to mean: a sign or mark or combination of signs or marks capable of being represented graphically and capable
of distinguishing goods or services of one undertaking from those of another undertaking.
For every successful and time tested corporate brand (trademark), that everyone wants to associate with, behind the scenes, a lot of effort and resources have been sunk into intricate trademark development and aggressive protection. Company brands and trademarks are amongst a company’s valuable assets. A study done by the UK’s IP office reveals that an estimated 6% of most company investments are spent in company brand protection.
Branding starts and centers around your use of distinctive images, symbols, colors and styles, and caricatures, which most appropriately separate and preposition your goods, or services as unique from others on the same market, giving both a protection to your customers and also acquiring brand image and build up brand loyalty amongst your consumers.
Dangers of using unregistered trademarks
Until a name or logo is registered as a trademark, you cannot be certain that it belongs to you. If another person or business registers the mark first, you may find yourself in the highly inconvenient and very costly position of becoming embroiled in litigation and potentially having to withdraw your products, redesign your packaging and marketing literature, and pay damages or an account of profits to the registered trademark owner. Besides the quantifiable costs, you could also risk any goodwill that you may have established in the brand name over the years, over a product that you have painfully taken years to create, just because you didn’t take the extra step of registering it.
Available research from world intellectual property organisation shows that over 80% of SMEs fail to register their trademarks. The majority think that it is not important to their business, with others citing lack of time, lack of understanding of the process of registration and costs associated with registration. By failing to register their trademarks, these businesses are not only damaging their brands and reputation, but also put their businesses at risk and in the end, loose out in the market battle.
Benefits of trademark registration
When you register your trademark, you ensure that you are in a position to prevent others from using or registering a similar one and that is the key to maintaining a strong brand.
Section 34 of the Trademarks Act 2010 is to the effect that a person may not institute proceedings to prevent or to recover damages for an unregistered trademark. Section 35 saves the right of action against a person for passing off goods or services as the goods or services of another or the remedies in respect of the right of action.
Protection under section 35 is only afforded to an unregistered trademark where a mark has acquired a substantial reputation. Even then, the hurdles to be over come in order to succeed in enforcing those unregistered rights against a third party, and the associated costs, are such that many businesses are inhibited from taking the legal action, and those that do, often fail.
By registering its trademark, a business greatly improves its ability to prevent a third party from using or seeking to register conflicting marks, and to seek appropriate remedies, such as an injunction and or damages, in the case of an infringement.
Trademark registrations are also valuable, transferable assets, which can be used as negotiating tools in business transactions and as security for financial transactions. Intellectual capital is recognised as the most important asset of many of the world’s largest and most powerful companies; it is the foundation for market dominance and continuing profitability of leading companies. It is often the key objective in mergers and acquisitions.
What to consider while developing a good trademark
Before coming up with the appropriate idea of a trademark, ask yourself, what your particular brand is and what word best expresses your brand. Also imagine what typography conveys the feeling of your brand. For example, what colors are consistent with your brand’s personality?. Your trademark can include a graphic, and if so, choose graphic expression which will best complement your brand. Finally, ask yourself the hard question on whether the trademark helps distinguish your brand from the competition?.
It is important that every business, however small, urgently puts in place an effective and proactive trademark development and registration strategy to ensure that all its brands are properly protected, and that those it enters into contract with to use the those brands are not going to land them in trouble with other trademark owners.
The use of effective trademark watching and monitoring procedures is also fundamental to the maintenance of a strong and enforceable trademark in the market; it helps to identify potential sources of conflict, including potential infringers, and prevents the dilution of one’s trademarks.
Where to find help
You should seek the advice of a trademark attorney for help in developing or implementing your trademark protection strategy. The trademark attorney should be in position to guide you through the trademark selection and registration process and advice on all aspects of the protection and enforcement of your trademarks.
Angualia Daniel
Managing Partner
M/s Angualia Busiku & Co. Advocates
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)