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Benefits of Trademark Registration
The Federal government through the Lanham Act and the various states through state laws
have provided for the registration of marks. Registration statutes are widely held to
provide no new substantive rights, but rather to provide certain powerful and useful
presumptions and remedies. Federal registration applies only to marks used in the types
of commerce which may be lawfully regulated by congress. Examples of such valid use in
commerce are found later in the text. State registration is ordinarily available for marks
used anywhere in the state.
The most basic benefit of registration is that it provides constructive notice of the mark and
the registrant's claim to ownership. Other owners or users may not then claim lack of such
knowledge even though they had no actual knowledge of use or ownership.
There are many other benefits of national registration under the Lanham Act and most state
statutes provide similar protection. Registration creates a strong presumption of ownership,
use, and validity. This places the burden of proof upon non-registered users claiming
ownership, use, or validity. Subject to a few specific limitations, other users loose the
power to contest the registered owner's right to a mark subsequent to five years of consecutive
use after registration. After five years registration may only be avoided or canceled upon
proof of such actions as fraudulent registration, abandonment, or because the mark has become
a descriptive one as described above. Neither registration nor the five year rule affect rights
in a mark which may have accrued to another prior to registration.
Federal registration not only provides for constructive nationwide notice; but, in effect,
provides constructive nationwide use. Although registration does not prevent a legitimate
user of the mark from continued use; it does ordinarily limit such a user to the geographic
area or market territory established prior to registration.
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