Friday, September 9, 2011

Trademark Registration Costs: Is It Worth It?

Hello everyone,

I receive dozens of calls per week from individuals wanting to register a trademark with the USPTO.  However, once I give a potential client an average price quote to begin and complete the trademark process, many are hesitant to proceed.  They state, "well this company only charges X amount of dollar to file a trademark" or "I can just file the application myself and save on the legal fees."

The trademark process is very complex and unless you know what you are doing, it can become very difficult or near impossible to do without assistance.  As I have said many times before, a large percentage of clients I receive have attempted to do it alone or hired a company such a Legal Zoom and the USPTO has sent them an office action they can not understand.  Common reasons the USPTO will reject an application are:  1) there is a conflicting priority trademark or 2) the specimen is insufficient.

Trademark registration costs

On average a good trademark attorney charges between $2000 and $3000 to initiate and complete the federal trademark registration process.  Why?  Here is a breakdown of costs:

Comprehensive Search

If you have a logo and a name that needs protection, trademark search companies such as Corsearch, charge around $1000.00 to deliver a comprehensive search.  A comprehensive search results in a nationwide search of various state and federal databases such as company names, DBAs, state trademark databases, USPTO and Library of Congress databases to discover any competing or priority trademarks.  They will also search Dun and Bradstreet and Internet domain names.

Trademark registration companies will not do a comprehensive search and will simply do an Internet search and proceed with registration.  What can you expect for only $299?  I am always adamant my clients do a comprehensive search because an Internet search will not find the mom and pop store with a priority trademark that has been operating for 40 years and does not have an Internet presence.

Legal Fees

Legal fees to review the results of a comprehensive search; draft a search opinion letter regarding your priority trademark rights; and to complete the USPTO application range between $1000-$1500.  Of course these fees depend on the attorney's hourly rate and whether there is a junior attorney working on the application and a partner needs to review it.  In that situation, the legal fees could be significantly more.

USPTO filing fees

Registration fees per trademark are between $275 and $325.  However, this amount depends on how many classifications are chosen in the registration process.  Classifications are based on what goods or services the trademark will protect.  I always like to use the BBQ restaurant as an example.  If you want to trademark ZZZ BBQ restaurant and also sell bottled ZZZ BBQ sauce and t-shirts, you would register the mark under three classifications: restaurant services, sauces, and t-shirts.

As you can see, the actual legal fees made on a trademark registration is on average 50% of the actual trademark registration fee.  The above process works for me and I have been very successful in registering clients' marks.

I always tell potential clients the following when considering federal trademark registration:  you will either pay $2500-$3000 now or pay thousands more in fighting a trademark infringement action; fighting for your trademark; or rebranding because you spent funds on branding materials and you suddenly discover you have to choose another trademark.

I hope this information was helpful.






14 comments:

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A comprehensive search results in a nationwide search of various state and federal databases such as company names, DBAs, state trademark databases, USPTO and Library of Congress databases to discover any competing or priority trademarks.

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What can you expect for only $299? I am always adamant my clients do a comprehensive search because an Internet search will not find the mom and pop store with a priority trademark that has been operating for 40 years and does not have an Internet presence.

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