IN ASSOCIATION WITH Brand


Failing to protect your brand at the outset of your business can have grave repercussions further down the line, so invest now in your brand to maximise its future value, write Nick Fenner and Jo Pritchard


The problem


When it comes to seeking external invest- ment, the due diligence spotlight will inev- itably focus on the assets of the business, including the rights to the trading name. Fail- ing to take the necessary steps to protect the brand early on can have adverse consequences on valuation at a critical time for the business.


The law A business’ brand is underpinned by a range of intellectual property rights, which are pro- tected by law. For example: ●brand/product names can be protected by registering them as trademarks in the UK and overseas;


●online presence can be protected by securing domain names and social media identity;


●original designs/logos can be registered as designs. By obtaining these registrations early on,


potential problems will be flushed out. Own- ership of those registered rights will help demonstrate to investors that the business has taken the necessary steps to ringfence the


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aid Expert advice


Investors will want to know who owns the brand, what steps have been taken to pro- tect it against competitors, any historical con- flicts, and the possibility of ringfencing the brand against competitors going forward in the future. There is nothing like an announce- ment of an intended expansion to bring dis- putes out of the woodwork.


In an increasingly competitive marketplace, your brand identifies your business and val- ues. It communicates with your customers and differentiates you from your competitors. Poorly selected or managed brands can result in a loss of identity and recognition. Working alongside the sales, marketing and business development teams, leisure opera- tors should consider early on the legal protec- tion available for their brand to help maximise and preserve the future value in the brand as it grows.


To-do checklist Some of the things to maximise the value in brands include: ●Choosing distinctive marks that don’t sim- ply describe the product or services so that the mark can be registered and protected.


●Undertaking clearance searches before pro- ceeding with new brand or product names. You do not want to risk infringing a third- party’s rights.


●Ensuring that all possible trademarks are registered, including brand names, product names, logos and even unusual or inventive menu items.


●Effectively managing your trademark port-


BRAND Importance


value in its intangible assets. This can signifi- cantly enhance the potential for the business to expand and therefore enhance its potential future value.


folio or instructing someone else to do so. This will include keeping a record of dates for renewals and some monitoring of con- flicting subsequent applications.


●Thinking about future expansion by consid- ering where applications should be filed – perhaps international expansion might one day be on the cards?


●Controlling changes to the brand presen- tation, especially if the new design varies significantly from the old one, as it won’t be protected by prior registrations. Leisure operators should then consider new appli- cations to protect their rebrand.


●Ensuring that you own all of the artwork used, either by creating artwork yourself or if you commission a third-party to do so. You should also make sure that all rights in the artwork are assigned in writing to you. The position under UK copyright law is that the designer and not the commissioner will be the first owner of a work. A recent case involving Innocent Smoothies and an argu- ment over the ownership of its iconic ‘Dude’ logo, which the court finally ruled was actu- ally owned by Innocent, showed the impor- tance of clearly setting out ownership of artwork at the outset.


●Protecting your brand by enforcing it where necessary.


Beware A business’ brand is one of its key assets. Busi- nesses should make sure that they do not miss any opportunity to protect it and maximise its value wherever possible.


Contacts Nick Fenner and Jo Pritchard, commercial partner and legal director, TLT, nick.fenner@TLTsolicitors.com and jo.pritchard@TLTsolicitors.com


Insight Report | 13


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