Trademark advice for Cyprus startups navigating the digital era

In the age of digitalisation, the registration of trademarks holds immense significance, particularly for small businesses and emerging entrepreneurs.

This process plays a pivotal role in safeguarding a company’s brand and intellectual property.

For small enterprises and startups, the strategic act of trademark registration becomes a crucial step. It serves as a protective measure for brand identity, fostering increased brand recognition, building consumer trust, gaining a competitive edge, and laying down a robust legal foundation for business expansion.

In today’s digital landscape, where virtually everything and everyone is online, these aspects pose considerable challenges, making the registration of trademarks an essential undertaking.

“It is a proactive step towards building a resilient and legally protected business identity,” Yanna Raevskaya, Head of services firm Prospectacy Ltd’s Legal Department, explained.

Raevskaya, who has successfully handled a major legal battle against tech giant Apple Inc. which had tried to block Cyprus-based gaming startup Apella Games from registering its name and logo with the European Union Intellectual Property Office (EUIPO), claiming they were visually, phonetically, and conceptually similar to that of Apple’s, says registering early is of paramount importance for several reasons.

“By failing to register their trademark, businesses risk investing time and resources in building a brand that may need to be changed if someone else claims prior rights to a similar mark,” Raevskaya said.

“Therefore, registering a trademark as early as possible is the most prudent and cost-efficient way to avoid rebranding costs further down the line,” she added.

“In other words”, she continued, “it is simply more expensive to be unprotected”.

Additionally, registering a trademark early gives a business a jump-start in securing its online market position. Securing a trademark helps protect brands from infringement in the vast and competitive digital marketplace, reducing the risk of copycat products or services.

This also applies to influencers who promote goods and services through various social media platforms.

A trademark can also be a significant asset for a business, contributing towards raising its overall value.

Registered trademarks are a clever way to monetise a brand; a business can choose to sell the trademark, or lease it, or license it to ensure a steady increase in revenue. A good example is Finnish company Rovio Entertainment, the developer of Angry Birds, which licenses the brand and the related characters to product manufacturers and content producers. In 2022, brand licencing business units accounted for approximately 3 per cent of group revenue.

Also, if the business expands, the trademark can appreciate in value and become an important part of the company’s intellectual property asset portfolio.

Online Presence and Digital Branding

Moreover, in her analysis, Raevskaya noted that securing a trademark is essential for navigating the digital market with uniqueness, promoting innovation, and contributing to digital diversity.

Particularly in the context of the digital age’s heavy reliance on search engine algorithms, having a registered trademark enhances search engine optimisation (SEO), functioning as a keyword for improved online visibility.

The advantages extend to social media platforms, where a registered trademark provides a robust foundation for safeguarding a brand’s name and logo, preventing any potential confusion or dilution.

Trademark registration not only elevates but also ensures brand identity, establishing a distinct and unforgettable presence. This differentiation of products and services enhances market distinctiveness, making goods or services more memorable.

In addition, considering peoples’ decreasing attention spans, the importance of a lasting and memorable trademark cannot be overstated, as it is crucial for creating a lasting and impactful impression.

“Registering a trademark should be a priority from the onset, especially in the digital world, as it can act as a visual ambassador for businesses large and small, as well as entrepreneurs,” Raevskaya stated.

“In a highly saturated digital market, it’s important to stand out and securing a trademark affords a brand autonomy,” she added.

Moreover, Raevskaya explained that “a trademark can also sustain a small business in its early days and provide protection for its brand in the fierce digital world”.

Trademark registration

Raevskaya noted that trademark registration offers three routes, each catering to different geographical extents and durations.

In conclusion, small businesses and new entrepreneurs interested in registering a TM should consult qualified advisors who can guide them according to their market needs and the particular product or service they offer.