Trademark law for startups

For start-ups, building a strong brand is crucial for long-term success. A well-protected brand can not only promote brand recognition and customer loyalty, but can also represent significant company value. This article highlights the most important aspects of trademark law for start-ups and provides practical tips for protecting your own brand from the outset.

Basics of trademark law

Trademark law protects signs that distinguish the goods or services of one company from those of other companies. In Germany, trademark law is regulated in the Trademark Act (MarkenG). According to Section 3 MarkenG, a trademark can consist of words, letters, numbers, images, colors, the shape of a product or its packaging as well as sound marks:

1. By registration in the register kept by the German Patent and Trademark Office (DPMA) (Section 4 No. 1 MarkenG)
2. By using a sign in the course of trade, provided that it has acquired a reputation (Section 4 No. 2 MarkenG)
3. By notorious reputation of a trademark (§ 4 No. 3 MarkenG)

For start-ups, registration is generally the safest and most effective way to obtain trademark protection.

Advantages of a registered trademark

A registered trademark offers start-ups several advantages:

1. Exclusive right: The owner of a registered trademark has the exclusive right to use it for the registered goods and services (Section 14 MarkenG).
2. Right of defense: The trademark owner can prohibit third parties from using similar or identical signs for similar or identical goods and services.
3. Claims for damages: Claims for damages can be asserted in the event of infringement of trademark rights.
4. Asset: A registered trademark is an asset that can be licensed, pledged or sold.
5. Priority: Registration secures the seniority of the trademark, which can be important in the event of later conflicts.

Steps to trademark protection for start-ups

1. Trademark search
   Before a startup registers a trademark, a thorough trademark search should be carried out. This includes:

• • Search in the trademark register of the DPMA
  • Search in international trademark registers (e.g. EUIPO for EU trademarks)
  • Internet search for unregistered but used trademarks

A professional trademark search can help to avoid conflicts with existing trademarks and increase the chances of success of an application.

2. Determining the scope of protection
   When applying for a trademark, the goods and services for which the trademark is to be protected must be determined. The Nice Classification, which divides goods and services into 45 classes, is decisive here. Start-ups should carefully consider which classes are relevant for their current and future business model.
3. Trademark application
   The trademark application is filed with the DPMA. The following information is required:

• • Representation of the brand
  • Indication of goods and services
  • Details of the applicant

The registration fee is currently 300 euros for up to three classes, each additional class costs 100 euros.

4. Examination procedure
   The DPMA examines the application for absolute grounds for refusal (e.g. lack of distinctiveness). An examination for collision with earlier trade marks is not carried out ex officio.
5. Opposition procedure
   After registration, the trademark is published. Owners of older trademarks then have three months to file an opposition.

Special challenges for start-ups

1. Limited financial resources
   For many start-ups, the cost of trademark registration and administration is a challenge. It is advisable to set priorities and protect the core brand in the most important markets first.
2. International expansion
   If international expansion is planned, a strategy for worldwide trademark protection should be developed at an early stage. Options include national applications, EU trademarks or international registrations under the Madrid system.
3. Digital trademarks
   Digital trademarks (e.g. app names, domain names) are of particular importance for many start-ups. An integrated strategy of trademark law and domain law is required here.

Practical tips for start-ups

1. Early planning: Start developing and registering your trademark as early as possible in the start-up process.
2. Holistic strategy: Consider brand protection as part of your overall intellectual property strategy, including patents and copyrights.
3. Monitoring: Implement a system to monitor possible trademark infringements.
4. Documentation: Carefully document the use of your trademark in order to be able to provide proof of use in the event of a dispute.
5. Contractual protection: Clearly regulate the rights to developed brands and logos in contracts with employees, freelancers and partners.
6. Legal advice: Consult a specialized trademark attorney for complex questions or international applications.

For start-ups, building and protecting a strong brand is a decisive factor for long-term success. A well thought-out brand strategy right from the start can not only minimize legal risks, but also increase the company’s value and strengthen its market position. Through careful planning and targeted investment in brand protection, start-ups can create a solid foundation for their brand development.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.