The product is perfected, the staff is hired, and the team is ready to launch a new brand. It’s an exciting time for an organization, but leaders should remember that before that product lands on retail shelves, there are some key legal issues that need to be addressed. Here are three lesser known legal considerations for new brands
1. Don’t Depend on the Domain Name
A common mistake that new brands often make happens when determining the name of their business or product. They believe that research of domain names it the best way to determine if the desired brand name has already been taken. Too many leaders find out too late that purchasing a domain name is not the same as trademarking the brand name. They invest heavily in developing a website and may even begin producing product only to find out that the brand name is identical or similar to a larger organization’s name, who can claim copyright infringement. A more effective way to be sure that a brand name is not already taken is to visit the US Patent and Trademark Office site, and search for it. Having a differentiated brand name will not only keep an organization out of legal trouble, it will eliminate the inevitable confusion consumers will face if a brand is too similar to its competitors'.
2. Copyright Logo Design
Another legal issue that can plague first-time organizational leaders has to do with logo design. It is likely that emerging organizations, especially those with limited funding, may look to family and friends in the beginning stages of a launch to help out. A leader may think that they can trust an artistic friend to create the logo design without a formal contract. However, upon creation, that piece of art is legally their copyrighted work, and if a product launch explodes, they may very well exercise their right to take in profit from the logo design. To avoid a legal battle over the logo, it is important to develop a proper contract that signs over the copyright of the logo over to the business upon finalization.
3. Remember Trade Secret Law
Some leaders of new brands think that they must patent their product in order to protect it. While patents do offer a superior level of protection, they are very costly to obtain and can take years to be approved. If an organization is ready to launch their brand, it is unlikely they will want to wait for a patent. There are other protections that new brands can take advantage of, however. Of these is trade secret law, which protects inventions that have a short market life (less that 20 years) such as technology, as well as inventions that are difficult to reproduce, such as the famous Coca Cola recipe. It is important for new brands to do some legal homework pre-launch by researching existing brand names, obtaining relevant copyrights, and choosing the best protection option.
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