The state registration of trademark is not mandatory i.e. the absence of the trademark registration does not mean that the owner of trademark does not have rights on its exploitation. However, the trademark registration and the obtaining of the state registration certificate gives certain advantages to its owner.
1.The exclusive right of thye trademark’s exploitation
By means of registering the trademark, the owner becomes the proprietor of the exclusive rights on the trademark’s exploitation, i.e. eny form of exploitation of trademark is illegal unless the permission from the right owner is obtained. Illegal trademark’s exploitation invokes liability according to the current legislation.
2.Effective assets’ investment
As any other property object, the trademark has its value. After some time such value may increase considerably. In certain cases known from the real life, the value of trademark has risen so high that the trademark has become the most explensive among the company’s assets.
3. Sale Item (Lease Item)
Trademark can serve as an item offered for sale or temporary use (lease), including the use under the franchising contracs. By means of concluding the contracts on the transfer of rights or the licensing contracts, the owner of the exclusive rights can gain the considerable economic profit, even if he does not exploit the trademark personally.
4.Domain name registered in the “UA” zone
The measures taken in Ukraine for the prevention of the unlawful exploitation of trademarks in Internet, include the enforcement ofDomain Name Rules of the “UA” zone . Under these rules, only the owners of the registered trademark have right to obtain the domain name on the “UA” zone.
5. Intangible Assets in Company’s Staturory Fund or in Company’s financial statements.
According to the 8th Accounting Standard, the rights on trademarks are included in the group of intangible assets. Accordingly, the value of trademark can be included in the company’s financial statements or become a capital contribution in statutory fund, on the moment of the company’s registration.