Goodwill, your most important asset

"A good name is far better than great riches! It is wealth that can not be stolen. It is fortune that cannot be bought. It is honour and character, impossible to imitate, impossible to cheapen. It is integrity, and it is pride and this is why so many of us have names without price."

Businessmen have always been concerned about their reputation, their competition and their future. In the past, business people have gone to great lengths to insure that their products and services reach as large a buying group as possible. They recognize the need to stand out separately from their competition, to be unique, to be distinctive. Not much has changed since the dawn of marketing. Today, business people still go to great lengths to be unique. To accomplish uniqueness, businessmen give special thought to business names, product names, letterhead, paper stock, invoices, logos and the approach to customers. They attempt to build a Trade Style, a reputation, and provide a STANDARD OF EXCELLENCE above all competitors. Business people strive to create GOOD WILL for themselves and their products.

These business people go to all this trouble so they can gain a unique place in the business world, and then they forget to PROTECT THEIR GOOD NAME.

Consider this example

A husband and wife team decide to open a restaurant in Edmonton. They develop and introduce a unique food product called a "Wikter". The product is well received in Edmonton, and it's reputation grows alongside the business. An enterprising businessman from Calgary visits the restaurant, eats the "Wikter" and realizes this is a good idea. This businessman decides to open his own restaurant in Calgary and sell "Wikters". However, he does not know the exact formula for the product. The business fails, and the businessman is sued by two of his former customers because they suffered upset stomachs.

Your first reaction to this story might be "Good, he stole it anyway". However, this affects every businessman in Canada, with a unique idea or new product. The fact is the Edmonton inventor of the "Wikter" is now faced with several problems. (1) people from Calgary, when in Edmonton, would not buy a "Wikter" due to the bad press it had in Calgary, (2) people in Edmonton who do not know the two businesses are unrelated decide not to try a "Wikter", (3) the Edmonton businessman cannot expand his business into Calgary because he has an undeserved bad name there, (4) the Health department in Edmonton decides to visit the Edmonton business to make sure the Calgary problem does not exist in Edmonton, (5) the media reports the story about the health department visit, but the consumer only hears the business was investigated and forgets they were cleared, (6) the Edmonton business goes broke.

On the other side of the fence, consider the actions of someone who tries to open a Restaurant called "Wendy's" or "McDonald's" or "A & W". They sell well known burgers with unique names that are all registered Trade Marks protected by Federal law. When the owners of these marks learn of the existence of any business offering a burger with a similar name without authorization, the owners commence legal action to protect their good name.

Does your company name or product name have this protection?

Governments no longer accept the responsibility for the reservation and protection of your good corporate name. This responsibility now rests with the Incorporator of the company. This policy has left the door wide open for abuse. If your business has a good name, product, service or a sound customer base and good growth potential, then you have built your GOOD WILL. Now you must protect it.

In the past, it has been the practice of far too many lawyers to form a numbered company and then register a trade name for the business. These businesses achieve a degree of success, only to find that their names have been registered for evidentiary purposes only. The right to the exclusive use of the name is not guaranteed or implied.

You may be wondering if there is any protection for your name from the unauthorized use by others. Under current civil law you can have your lawyer take a Passing Off action against the violators. However, this is a long and involved process that does not have a high degree of success. You almost have to demonstrate that the other guy committed an act of Fraud.

THE BEST PROTECTION for your Good Name and, the reputation of your good product and corporate names, is the protection afforded by the Federal Government under the Trade Marks Act.

Trade Mark protection is not as widely used as it should be. Less than 10% of all active business have registered their trademarks. The fact of the matter is that every business that is active has trademarks that should be registered. How about your business.

Trade Mark protection will provide you with a Country Wide registration of your Name, Design, Logo, Slogan, Packaging, or any other form of uniqueness that distinguishes your business or your products from those of your competitors. Once registered, you are protected from anyone using your Trademarks anywhere within the Country. Trade Mark registrations are monitored every month to ensure protection is secured for the life of the registration. Once registered, you are protected for a period of 15 years and can renew your registration into perpetuity.

Trade Mark protection has become extremely popular in Eastern Canada. In 1979 there was an average of 500 applications received by the Trade Mark office each month. In 1996, the average was almost 5000 applications per month. This growth in trade mark protection stems from the movement, by Governments, away from name approvals and protection for new corporate names. Provincial Governments are adopting a policy of "let the incorporator accept the responsibility" for the use of the name. In view of this policy you must also give consideration to alternative forms of protection for your names.

The acquisition of a Trade Mark is a simple process. All you need to do is call your lawyer, tell him you want Trade Mark protection. If your Lawyer does not know how to help you, then you can call any of the Trade Mark Agents listed in the Yellow pages, or you can call Arvic direct. after all we are the largest firm of trademark agents in Western Canada.

Once your mark is registered you are, in effect, granted a monopoly. Consider the ease of obtaining a judgment when all you need to produce in Court is evidence that a) you have a registered mark and b) the defendant is using a name or logo that is confusing with the registered mark. Two pieces of evidence. I am sure you can see how this procedure can afford you a broader base of protection than current civil law. Please remember the words of a wise man at the top of this page.