What are the 3 similarities and differences between car insurance and trademark registration?
Know more in this short video:
There are three similarities and three differences between trademarks and car insurance. let's start with similarities first. Number one, you MUST do both even though you don't want to do either. So both are necessary "evils". You've got mandatory car insurance, you don't have mandatory trademarking for your business but if you're serious about your business, it's just one of those things you got to do.
Nobody ever woke up and said, "Hey! I'm so excited because today I will be buying my car insurance!". The same thing with trademarks, nobody wakes up and says "Hey! I'm so excited because today I'm gonna go and file my trademark application." We're excited about trademarks because that's what we do but brand owners, to them it's a necessary evil. I get that, so same attitude between car insurance and trademarks on that front.
The second similarity is that both trademarks and car insurance protect you in case something bad happens. Car insurance is supposed to protect you if you have an accident, god forbid you kill someone, or damage someone's property. Your insurance policy is gonna pay for that, it's gonna protect you, is gonna make sure that you have the money to replace your car, to pay the victim, whatever. Same thing with trademarks. They're designed to help you in case somebody steals your brand. In case somebody tries to push you out of your own brand, in case you see that somebody is trying to pass off their products and services like yours. So if you have a trademark registration, you can easily go after them and win. And it won't cost nearly as much as it would without your trademark registration.
The third similarity between car insurance and trademarks is that if something bad happens, and you don't have it, you are screwed. So with car insurance yes it's mandatory but let's say you're not paying and you go out there and, I don't know, you cause a big collision, maybe somebody dies, and they come to you and say "Well, okay, what's your insurance number?" and "Uhh, you know what, I don't have it." So this can easily bankrupt you and this could easily put an end to your life as you know it because this can cost a lot of money dealing with that stuff. And that would be the first question everyone asks—do you have insurance, what is it? And if you don't have it, "oh wow". The same thing with trademarks, somebody steals your mark, and you're like "you can't steal my mark, it's my brand!" Well the first question they're gonna ask is "Well, do you have a trademark?" and if your answer is no, everyone will go "oh my god." It's such a facepalm moment, right? Because everyone expects you—that if you care about your brand, that you take the steps to protect your brand, and if you don't then you got a problem.
So here are the similarities—you gotta do both, both are a necessary evil, both protect you in case something bad happens and also if something bad happens if you don't have it, you are screwed. So that's the similarities.
There are also three differences. The first difference is that car insurance you gotta renew every year. You gotta pay for it every year. You can have a monthly plan, you can have a six-month plan, you can have..whatever. And the average cost of insurance again in North America ranges anywhere from 2000, maybe 1500, maybe three, four thousand dollars a year depending on your experience, all of that stuff. And you have to pay every year. Pay and pay and pay and pay. With trademarks, you do it once, every ten years. And then to renew it, you pay just a couple a hundred dollars. So in fact, the cost of owning your trademark for your business is much much less than what your paying for your car insurance. So that's the big difference.
The second big difference is that unlike car insurance, a trademark is an asset, an asset that you can sell or license. often is the most valuable asset of your business. Like for example, the Nike brand, the swoosh, is worth, I think it's 47 billion dollars when the entire valuation of the whole company is just 90, so the 47 of that is just the name and the logo. Amazon brand is worth over 300 billion dollars. And so is Apple's. The brand is really the most valuable asset of the business. Your car insurance is just a liability. it's not an asset, it has no value to anybody but you. And trademarks, as I said, you can sell them you can license them, you can do very creative business with them. trademarks can help you make money and that's the biggest benefit of trademarks.
And finally here's the third difference. Unlike car insurance, the value of your trademark grows the longer you use your brand. Because trademarks are not about just getting a monopoly or name, or an image. They're about protecting the goodwill you've built around your brand. that's why the Nike brand, the Amazon, the Apple, all of those big brands—that's why they're so valuable because so many people know about them. So the longer you've been building that, the more money you've invested in promoting them, the more value your trademark is gonna have. Well, your car, the more you drive it, it's less and less valuable to insure so when you buy a new car, you're like "Well okay, I wanna make sure that I get the liability to pay somebody else. I also wanna make sure that I protect my own investment so if I get hit, the insurance company pays." Or if it gets stolen, you know you've been driving your car and you've been driving and driving. And you know when you're car's 20 years old, "uh probably I shouldn't be paying my insurance in case somebody steals it because at this point I don't really care anymore." So that's the big difference.
The three differences—again, you pay car insurance every year and trademarks every ten years, and then renewals are very cheap. With car insurance, you're gonna end up paying a lot more for the privilege of being able to drive your car and with trademarks, you're building a really valuable asset and you only pay a serious amount of money upfront. And then unlike car insurance, a trademark is an asset, car insurance is not an asset. And also unlike car insurance, the value of your trademark grows the longer you use your brand. That does not happen with car insurance.
So there you have it. Three things in common and three things that are different between trademarks and car insurance. So if you're a startup or an entrepreneur, or small business, and you want to get your trademarks done right, follow the link on the description of this video and see how Trademark Factory can help you secure your brand. make sure you treat your brand, you treat your business, at least as seriously as you're treating your car insurance. Right? And until then, I will see you in the next video.
Disclaimer: Please note that this post and this video are not and are not intended as legal advice. Your situation may be different from the facts assumed in this post or video. Your reading this post or watching this video does not create a lawyer-client relationship between you and Trademark Factory International Inc., and you should not rely on this post or this video as the only source of information to make important decisions about your intellectual property.