As a brand value is given by the quantity of products were sold associated with that brand and price the buyer is willing to pay for purchased product, it might ask why a buyer chooses a particular brand and why is willing to pay more for a product with a certain brand from a similar product with a different brand?
If that is the registered trademark, benefiting from protection under the law, only the holder shall enjoy the exclusive right of exploitation of the mark, so they are protected not only the costs of promotion and support of the great, but the profits from the use this brand.
When we talk about protecting profits should keep in mind that for successful brands, which are not registered, there will be temptation to use illegal, under these circumstances, third parties can take advantage of investments in brand advertising and legal owner, with lower costs, sale price may be below the price of original products, on the other hand, most times, third parties neasigurand adequate quality products, the buyer will see a fluctuating quality, which will decrease the brand’s reputation and thus lower sales. The two effects combined can reduce profits unregistered owner of a brand relative to the profit that the owner would get the same trademarks, brand being used in the same category.
It should be emphasized that the registration of a trademark is not protected against counterfeiting (operation without the right) wearing the badge of the protected product, but the sign that is associated product, obtained the right (as a result of trademark registration) to prohibit third parties from using the trademark without the consent or permit holder protection financial efforts made to achieve quality products for market exploration and conquest.
Consilier european pentru proprietate industriala-intelectuala