Question

Sneha started a beauty care brand called “Glow Essence”, offering organic skin care products. Within a year her brand gained popularity for its quality and natural ingredients. However, Sneha discovered that another company was selling low quality skin care products under a similar name leading to confusion among customers. This damaged her brand’s reputation. On consulting a legal expert Sneha learned that “Glow Essence” is a trade name and not a trade mark. She initiated the registration process. (i) Differentiate between a trade name and a trade mark.
(ii) Explain how registration of “Glow Essence” benefits Sneha.

Hint:

Trade marks protect the identity of products/services, while trade names identify the business; registering a trade mark safeguards brand reputation and provides exclusive rights.

Answer 1

(i) Difference between Trade Name and Trade Mark:
Trade Name:
It is the name under which a business operates or is known in the market.
It identifies the business entity itself.
A trade name may or may not be registered.
Example: "Glow Essence" as the business name.
Trade Mark:
It is a symbol, logo, word, phrase, or design legally registered or established by use as representing a company or product.
It identifies the goods or services of a particular source.
A trade mark is registered under the Trade Marks Act, giving legal protection.
Example: Logo or brand name “Glow Essence” used on products.
(ii) Benefits of Registering “Glow Essence” as a Trade Mark:
Legal Protection: Sneha gains exclusive rights to use “Glow Essence” on her products, preventing others from using a confusingly similar name or logo.
Brand Identity and Reputation: Registration helps in establishing strong brand recognition and protects her brand’s goodwill.
Remedies Against Infringement: She can take legal action against unauthorized use or counterfeit products harming her brand reputation.
Asset Value: Registered trade marks are valuable intangible assets and can be licensed or sold.
Consumer Trust: Registration assures consumers of the authenticity and quality associated with her brand.