BRANDING AND ALL THAT JAZZ

Disclaimer: The aim of this article is information and enlightenment; please consult a solicitor for individual professional advice.

BRANDING, AND ALL THAT JAZZ

Entrepreneurship. I find that word fascinating for two reasons. One: it’s challenging to spell correctly. And two: it is a convenient cover-up for those who do not know what they are doing or what they are about, since everyone knows that an entrepreneur may not be successful immediately. Well, we are not discussing how to make a business idea or entrepreneurial venture succeed; we don’t want to put the core business advisors and shrinks out of business. However, we’ll briefly discuss something that could be a crucial element to its success.

Here’s another popular word: Branding. Every Bode, Obinna and Ali is tossing that word about these days, and with good reason too. As with almost everything in life, it could work for you or against you. When you’re starting a business, an important factor to consider is your brand. You may own the brand or you may have to apply for a licence from its rightful owner (we’ll talk about licensing and franchising another time).

In business, a brand is important because it creates an identity for you which can help you to:
• Ensure that your customers, clients, business partners and the general public can distinguish your product/service from others products/services.
• Build a relationship and reputation with the general public and have a competitive advantage (well, if your product/service is good).
• A successful brand is a form of property (intellectual) that can help you to obtain income (through franchising and royalties).
• A good and successful brand is a valuable business asset that helps your credibility and may help you gain investors and obtain financing.

Your brand is a form of your intellectual property. It is as much a property as any other thing you own, and in due time, it could even be more valuable than your real property or other tangible properties. Thus, it is important for you to protect it, so as to get the most out of it. This is especially in a country like Nigeria where everyone wants to copy a successful thing and make it their own.

The best form of protection that you can give your brand is by registering it. Registration gives you the exclusive right to prevent others from trading under the same or a confusingly similar brand.

Branding is related to many areas of law including unfair competition, advertising law and company law. However, the area of law that deals with the registration of a brand for the purposes of protection is a part of intellectual property law called trade marks’ law. In legal parlance, a ‘brand’ is usually referred to as a ‘mark’ (I agree with you that it is not as glamorous).

A mark is a sign that distinguishes goods and services of one person/enterprise/business from those of others. It could be a word, letter, numeral, drawing, picture, shape, colour, label, name, or any combination of any of these. Where it is used on a product or a service, it is generally called a ‘trade mark’ or a ‘service mark’ respectively.

The registration of a mark in Nigeria is governed by the Trade Marks Act. I will not go into the actual process of registration here and now, let it suffice to say that the current process of trade marks registration may be somewhat cumbersome. Thus, it is best to let the strong-hearted lawyers and trade mark agents handle it for you.

I have to briefly mention the doctrine of ‘PASSING-OFF’ by which protection is given to unregistered marks by common law. If some person/entity ‘passes off’ their product or service with a mark that looks like your own or with your name or mark, in a manner sufficient to cause confusion or deception, you are entitled under law to proceed against the person.

The advantage that a registered mark has over an unregistered one is that of proof in the event of infringement. A successful Passing-Off action depends on proof that the mark has accumulated public goodwill over a period of time, and that certain losses have been, is being, or is likely to be incurred by you as a result of the actions of the infringer. This ‘goodwill factor’, which may be difficult to prove, is not compulsory in an action for the infringement of a registered mark.

The remedies for an action for infringement of a registered mark and those of an action for passing off on an unregistered mark are the same viz: injunction, damages, accounts, conversion, delivery up and destruction of the infringing goods.

Well, now, you can’t say you didn’t know all these.