In today’s competitive market, every business, big or small, thrives on its identity. For Micro, Small, and Medium Enterprises (MSMEs), a strong brand name or logo can be the most valuable business asset. Yet, many entrepreneurs overlook one critical step in protecting it: Trademark Registration.
A trademark is not merely a legal formality; it’s your business’s signature in the marketplace. Let’s understand why trademark registration is important for MSMEs in India and how they can approach the process effectively.
What Is a Trademark?
A trademark is a unique symbol, word, phrase, logo, or a combination of these that identifies your goods or services and distinguishes them from others. Simply put, it’s what helps customers recognize and trust your brand.
For example:
- The word “Amul” immediately reminds us of dairy products.
- The half-bitten apple stands as a global emblem of Apple Inc.
In India, trademarks are governed by the Trade Marks Act, 1999, and administered by the Controller General of Patents, Designs, and Trade Marks under the Ministry of Commerce and Industry.
Why Trademark Registration Matters for MSMEs
Many MSMEs in India invest significant time and money in building a brand but fail to legally protect it. Here’s why that can be risky and why trademark registration for small businesses is essential:
a. Legal Protection for Your Brand
A registered trademark gives you exclusive ownership rights. You can take legal action against anyone using an identical or deceptively similar mark. This protection helps prevent brand misuse, imitation, or trademark infringement that can harm your reputation.
b. Builds Brand Recognition and Customer Trust
Customers connect with brands through names and logos. A registered trademark in India enhances credibility and consumer confidence, signalling that your MSME is professional and reliable.
c. Creates a Valuable Business Asset
Beyond legal protection, a trademark is an intangible asset. It can be licensed, franchised, or sold. For growing MSMEs, trademarks add brand valuation during capital funding or expansion.
d. Supports Funding and Business Expansion
Investors prefer businesses with protected intellectual property rights. A registered trademark strengthens your brand’s profile during due diligence in funding rounds or strategic partnerships.
e. Facilitates Global Growth
Planning to export or go international? Trademark registration in India allows protection abroad through the Madrid Protocol, enabling international brand recognition.
Real-World Case Studies: When Trademark Registration Made (or Broke) a Brand
Understanding the importance of brand protection for MSMEs becomes clearer through real examples—some that succeeded because they protected their brand early, and others that faced legal and financial loss due to oversight.
Case 1: Missed Opportunity
[Arudra Engineers Pvt. Ltd. v. Patanjali Ayurved Ltd. (2020)]
Citation: C.S. No. 308/2020, Madras High Court (Order dated July 17, 2020)
Background:
Arudra Engineers, a Chennai-based MSME, registered the trademark “Coronil” in 1993 for industrial cleaning products. In 2020, Patanjali launched an immunity booster using the same name during the COVID-19 pandemic.
Court’s View:
The Madras High Court ruled in favour of Arudra Engineers, restraining Patanjali from using the mark and imposing legal costs. Patanjali’s failure to conduct a trademark availability search led to significant brand and financial loss.
Lesson for MSMEs:
Even a small business can defend its brand legally if the trademark is registered. Failing to search or register a trademark can result in lawsuits, rebranding, and revenue loss.
Case 2: Success — “Nandini Milk vs. Nandhini Deluxe”
[Nandhini Deluxe v. Karnataka Cooperative Milk Producers Federation Ltd. (2018)]
Citation: (2018) 9 SCC 183; (2018) 75 PTC 209 (SC)
Background:
A small Bengaluru-based restaurant chain, Nandhini Deluxe, applied to register its name. KMF, which owned the “Nandini” milk brand, opposed the application due to phonetic similarity.
Court’s View:
The Supreme Court ruled in favour of Nandhini Deluxe, stating that the businesses operated in distinct classes—milk products vs. restaurant services. The restaurant was allowed to keep the trademark.
Lesson for MSMEs:
Even if your brand sounds similar to another, you can still secure trademark protection if your business falls under a different class of goods or services. Early trademark registration helps you establish legal ownership and avoid future disputes.
Common Misconceptions About Trademark Registration Among MSMEs
Many small businesses in India avoid trademark registration due to common myths. Let’s address a few:
- “Trademarks are only for big companies.”False. Even home-based businesses and startups benefit from registration. It protects your identity regardless of scale.
- “Company registration protects my brand.”
Incorrect. Registering with MCA or under MSME Udyam does not protect your brand name. Only a trademark grants exclusive legal rights.
For more on MSME registration benefits, see Udyam Registration – Why It’s a Game-Changer for MSMEs
- “Trademark registration is expensive and complicated.”
Not anymore. The Indian government offers reduced fees for MSMEs—₹4,500 per class (online). The process is simple, digital, and efficient.
Step-by-Step Guide to Trademark Registration in India for MSMEs
Follow these steps to register your trademark successfully:
Step 1: Choose a Distinctive Mark
Pick a unique and brandable name or logo. Avoid generic names like “Super Electronics” or descriptive phrases like “Fresh Juice.”
Step 2: Conduct a Trademark Search
Before filing, ensure your mark isn’t already taken. Use the IP India Public Search Portal to check for similar or identical trademarks.
Step 3: File an Application (Form TM-A)
Submit your application via the IP India online trademark registration portal.
- Fee for MSMEs/Startups/Individuals: ₹4,500 per class
- Fee for Companies: ₹9,000 per class
- Attach your Udyam Certificate for MSME discount
Step 4: Trademark Examination
The Trademark Registry will review your application. If objections arise, you’ll receive a notice to respond or attend a hearing.
Step 5: Publication in Trademark Journal
Once accepted, the mark is published for 4 months to invite public opposition. If none arises—or if resolved—you move to the next step.
Step 6: Trademark Registration Certificate
If unopposed, your mark gets registered and you’ll receive the Trademark Registration Certificate. It’s valid for 10 years and can be renewed indefinitely.
🕒 Note: Timelines may vary based on objections or oppositions.
Trademark Registration Tips for MSMEs
✅ Do a Thorough Search: Prevent rejection and infringement disputes by checking similar trademarks in advance.
✅ Use the Trademark Consistently: Reinforce your ownership by using the mark across all platforms and marketing materials.
✅ Seek Expert Help: A trademark attorney or IP agent can simplify objections, hearings, and documentation.
✅ Register Digital Assets: Lock your brand name across domain names and social media.
✅ Monitor and Enforce: Regularly check for misuse and enforce your rights promptly.
Government Support for MSMEs on Trademark Registration
The Indian government supports intellectual property rights (IPR) for MSMEs through:
- Reduced fees for MSMEs, startups, and individuals
- IP Facilitation Centres under the MSME Ministry
- Reimbursement schemes from the state and central governments for trademark filing and legal fees
These initiatives help boost brand protection and competitiveness for Indian small businesses.
For insights on expanding MSMEs under new government definitions, visit New MSME Definition: Bigger Thresholds, Bigger Opportunities!
Conclusion
For MSMEs in India, a trademark is far more than a legal checkbox—it represents your brand identity, business credibility, and long-term value.
It protects your brand from misuse, builds customer trust, attracts investors, and enables global market entry.
In a world where brands matter as much as products, securing your trademark is securing your future.
Don’t wait until your brand is copied or contested.
If you run an MSME, take a proactive approach—conduct a comprehensive trademark search and initiate your trademark registration online in India today.
To explore this topic further, we invite you to attend our upcoming webinar on Trademark Insights for MSMEs: Why MSMEs Can’t Afford to Miss Out, where you’ll gain practical knowledge, legal strategies, and expert guidance on protecting and growing your brand through effective trademark use.
Register now on the Peridot App and catch the live broadcast on MSME TV!