In China, trademarks have the following common uses:
Brand recognition
A trademark is the core identifier of a brand, used to distinguish the goods produced or services provided by different enterprises. For example, in the mobile phone market, the “Huawei” trademark represents products of Huawei Technologies Co., Ltd., while the “Xiaomi” trademark represents products of Xiaomi Corporation. Consumers can quickly identify the brand they want to purchase through trademarks, avoiding confusion.
It helps to highlight the personality of one’s own brand among many similar products or services. Like the trademark of the sports brand “Nike”, its unique hook shaped pattern is easily recognizable and reminds people of the sports, fashion, and other brand images represented by the Nike brand.
A symbol of quality assurance for goods or services
For consumers, a trademark is a signal of quality assurance. A well-known trademark usually means relatively stable and reliable quality. Taking the home appliance brand “Haier” as an example, consumers who purchase home appliances with the “Haier” trademark will rely on their long-term trust in the Haier brand, believing that its product quality is guaranteed and its after-sales service is relatively reliable.
In order to maintain the reputation represented by the trademark, enterprises will strictly control the quality in the production and operation process. Because once there is a quality problem, it will have a negative impact on the reputation of the trademark, which in turn will affect the sales of the product and the image of the enterprise.
Market promotion and marketing
Trademark is an important element of advertising promotion. In marketing methods such as advertising and promotional activities, trademarks are in a prominent position. For example, the beverage brand “Wang Laoji” prominently displays its trademark in various promotional channels such as television and outdoor advertising, making consumers remember the brand and thereby increasing brand awareness and product market share.
Trademark can be used for brand extension. After a trademark achieves success in a certain field, companies can leverage the influence of the trademark to expand their brand into related product or service areas. For example, the “Yunnan Baiyao” brand was initially known for its pharmaceuticals, but later through brand extension, it launched oral care products such as Yunnan Baiyao toothpaste, quickly opening up new markets with the brand’s popularity.
Legal protection of rights and interests
Registered trademarks are protected by law, and trademark owners enjoy exclusive trademark rights. This means that other enterprises are not allowed to use the same or similar trademarks on the same or similar goods or services without permission. For example, if other enterprises use the “Moutai” trademark to produce Baijiu without authorization, Moutai can request the infringer to stop the infringement and obtain corresponding compensation through legal channels.
Trademarks can be used as intellectual property rights protection for enterprises. In business competition, when trademark rights are infringed upon, such as encountering counterfeiting, trademark registration, etc., enterprises can rely on relevant legal documents for trademark registration to safeguard their legitimate rights and maintain a fair competition order in the market.
Corporate assets and commercial transactions
Trademarks are intangible assets of enterprises. Its value can be determined through evaluation and will increase with the development of the brand and the improvement of market awareness. For example, as one of Tencent’s important assets, the value of the “Tencent” trademark continues to rise in the development process of the enterprise.
Trademarks can be transferred and licensed for use. Enterprises can transfer their trademarks to other enterprises to obtain economic benefits. It is also possible to license other enterprises to use the trademark and charge licensing fees. For example, some internationally renowned brands may license domestic enterprises to use their trademarks to produce and sell products domestically, while charging licensing fees. In addition, trademarks can also be used for pledging loans to provide support for corporate financing.