Question

Study the following passage and answer the questions:

A trademark is a recognisable phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind. Registering a trademark prevents others from using it so that consumers are not confused about the product. Trademarks add value and recognition to a company. Therefore, a company with well-established trademarks and brands in its portfolio enjoy a good reputation in the market. It also makes it easy to raise money from the stock market or borrow from lenders.

Questions:

1. Explain the meaning of trademark in your own words.
2. What benefits does the seller/company enjoy by registering its trademark?

Answer 1

1. A registered, identifiable phrase, term, or symbol that designates a business's particular product is called a trademark. A company's trade mark allows it to legally set itself apart from comparable products made by rival enterprises.
2. A trademark increases a seller's or company's worth and recognition. As a result, a vendor or business that possesses a strong portfolio of trademarks and brands enjoys a positive reputation in the marketplace. Additionally, it makes it simple to borrow money from lenders or raise capital on the stock market.