*
COCOV V E ID R A - 19 GE
Tips to Leverage and Protect Trademarks in Challenging Times WRITTEN BY CANDACE LYNN BELL
I
n the last several issues, this column has discussed how to protect different intellectual property assets of your business, including trademarks, trade dress, copyright, and trade secrets. In these extremely challenging times, both for craft alcohol producers individually and as business professionals, this article will highlight a few tips to keep in mind related to these assets and your business. As you know, trademarks, copyrights, trade secrets, and trade dress are the legal terms for your business brand, the content of your website, blogs, and social media sites, your packaging, and your secret recipe. These critical business assets need to be protected to leverage their value and preserve their worth regardless of the future of your business, since these assets can only be financially leveraged to assist you in getting through these challenging times if they still exist. The discussion below focuses on your brand or trademark, but many of the considerations apply to trade dress, copyright, patent, and trade secret as well. As always, consult with an intellectual property attorney on which strategies to protect and leverage these intellectual property assets.
74
Trademarks, copyrights, trade secrets, and trade dress are critical business assets that can only be financially leveraged to assist you in getting through these challenging times if they still exist.
Leverage what you have Craft alcohol makers may currently be producing their spirits, wine, or beer, or they may have taken a temporary pause. No matter which situation you find yourself in, you still have rights in your brand, your mark, your packaging, and your other intellectual property assets — your copyrights, trade dress, and trade secrets. Being creative in finding business opportunities that leverage these assets can be a much-needed assist for your business.
▶ Trademarks as Collateral for Traditional Financing
Trademarks and other intellectual property assets can be used as collateral by financial institutions and investors for loans and interim financing or seed capital. These lenders can even register security interests against your registered trademark with the
United States Patent and Trademark Office (USPTO). Remember, trademarks represent the goodwill of your consumers. Having a line item for that goodwill on your balance sheet, symbolized by your brand and mark, adds another asset to the picture.
▶ Trademarks as Revenue Streams under a License
Trademarks can be licensed to a third party for use under a license agreement so long as the licensor maintains control over the use of the mark. So, if you are currently not producing your spirit, you may be able to license your mark to another distillery that is in production. The license can be for a limited period and can provide a revenue stream for your business until your production is back on-line. Alternatively, you can explore new distribution channels, to the extent such channels are permitted under the two-tier federal and
WWW.ART ISANSPI RI TMAG.CO M