During an economic downturn, your business may struggle to meet revenue forecasts and pay expenses. The effects of a struggling economy compound if someone steals your intellectual property.
Thefts of trademarks usually rise when companies are struggling. You need to know how to protect your business’ assets.
Theft causes damage
As companies compete for sales and revenue in a bad economy, your best asset is your trademark. Consumers associate the quality of your product with the brand, building goodwill for your business. Competitors become more likely to steal intellectual property when their financial prospects are poor. If someone takes your trademark and uses it to promote or sell an inferior product, your brand will suffer. Your business will lose revenue and suffer financial hardship due to the loss of the rights to your trademark.
Action protects your asset
To protect your company’s trademark, you need to take action. You need to register the brand with the appropriate federal and state entities. A state registration protects your logo locally, while a federal registration provides notice to users across the country.
If you determine that someone is illegally using your trademark, you need to take legal action to defend your trademark rights. Your company should send a cease and desist letter to the infringer to get them to stop using the logo. You may need to file a lawsuit if the offending party does not stop their illegal use.
Businesses need to guard their intellectual property through registration and vigilance to avoid financial loss.