7 Ways to Potentially Lose Your Trademark in Israel
Do you have a successful brand in Israel? To protect your brand in Israel from being overtaken by your competitors, it is important to take certain precautions. By following these tips, you can save both money and resources .
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Failing to Register a Trademark
Failing to register a trademark for your brand on the Israeli market can put your business at risk for you to lose it to your competitors. They may claim rights to the mark, which could lead to a costly and time-consuming legal battle to prove your priority rights. Many businesses have lost their trademark because they did not register it in a timely manner. This can result in legal costs reaching hundreds of thousands of NIS.
Why should you register a trademark?
Registering a trademark for your logo or business name will provide you with exclusive rights to use it for a period of 10 years, and prevent competitors from using it in a way that misleads consumers or benefits from your reputation.
Additionally, having a registered trademark means you will not have to go through the costly and complex process of proving your reputation in court. In Israel, proving reputation of a brand may be considerable costly and complicated.
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Not Using Your Trademark
If you have registered a trademark, it’s important to start using it immediately by selling your products and keeping records of transactions. Failure to use the mark for 3 consecutive years can result in losing the trademark to competitors who may register it as their own. Without proper precautions, the brand you have invested money, time, and energy in may fall into the hands of your competitors.
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Avoid Genericizing Your Brand
There are instances where a brand becomes so closely associated with its product that the brand name becomes generic, such as “Tipp-Ex” which was the brand name of a German erasing fluid, but over time has become the generic term for all erasing fluids. Similarly, “Jeep” was originally a brand name for an off-road vehicle manufactured by Ford, but over time it has become synonymous with off-road vehicles in general. “Cargo” is another example in fashion, where it has become a generic term for mid-size pants. Another example is “ping pong”, which was originally a brand name owned by the Parker brothers, but has now become the name of the sport itself. “Fiberglass” is another example, it is a brand name owned by the Evans Kroning company, but has now become the nickname of the product itself.
When a brand becomes generic, it may no longer be eligible for trademark protection, leaving it open for use by competitors. Additionally, consumers may lose the connection between the brand and the manufacturer and fail to differentiate between the brand and the product category, not realizing that it is a private brand rather than a generic product name.
When a brand becomes generic, consumers may turn to competitors, mistakenly believing they are getting your product when it is actually from one of your competitors. This can result in the loss of the personality and uniqueness of your brand, and it can become part of the Hebrew language.
To protect your brand, it is important to avoid using your trademark as an adjective or noun. For example, if your new service is called SUPREEM for premium car sales services, avoid phrases like “Come and purchase the new SUPREEM vehicles” Instead, it’s recommended to use phrases like “Supreme offers a discount of up to 20% on luxury vehicle purchases.”
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Failing to Renew the Trademark in a Timely Manner
When a trademark is registered, it grants exclusivity for a period of 10 years. At the end of this period, a renewal fee must be paid to obtain a renewal certificate. Failure to do so can result in losing the trademark permanently, and reinstating it would require costly legal proceedings, if possible.
To ensure that your trademark remains protected, it’s important to pay the renewal fee and apply for trademark renewal every 10 years, also known as trademark maintenance
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Failing to Enforce your Trademark rights against infringers
If you fail to take action against competitors using your name or a similar name to deceive consumers, you may miss the opportunity to protect your rights and may face high costs. Furthermore, courts may be less likely to grant the desired level of protection if you have delayed in enforcing your trademark rights.
It’s crucial to remember that if you come across any unauthorized use of your brand or trademark, you should take immediate action to stop it.
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Your Competitors might Cancel your Trademark
Your competitors may attempt to hinder your business by filing for cancellation of your trademark, whether it be for reasons such as registering in bad faith, not using the trademark for 3 years, or simply to limit your business. Should your trademark be cancelled, you will lose your exclusive rights to the mark, and your rights to it altogether.
What should you do? Make sure to retain a law firm that specializes in trademark maintenance. They will ensure that you are informed in a timely manner and take necessary steps to prevent mistakes that could put your brand at risk.
Ensure that your legal counsel safeguards your trademark and keeps you informed of any developments that could impact your brand. It is advisable to request an update at least annually.
Ensure that your legal counsel safeguards your trademark and keeps you informed of any developments that could impact your brand. It is advisable to request an update at least annually.
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Avoid Permitting Others to Use your Trademark without a Written Agreement in Place
Allowing third parties to use your brand without obtaining the necessary permission, executing a written agreement, or registering the trademark in the trademark registry could lead to commercial conflicts. If not handled properly, these conflicts could have fatal consequences for the brand owners.
If you plan to grant others permission to use your brand or trademark, such as through franchise or distribution agreements, it’s important to have a written agreement in place outlining the terms and conditions, including monetary compensation, the start and end date of authorization, payment terms, and any required reporting. This should include a “license agreement” or “franchise agreement” that clearly defines the terms of the authorization.
Disclaimer: The information contained in this article is for general informational purposes only and should not be considered legal advice or a substitute for consulting with a licensed attorney.
Do you have any questions? Please contact us.
