Top 10 Trademark Mistakes Startups Make And How To Avoid Them

Why do so many startups in India lose their brand rights?

The answer is often very simple; the mistakes are simple trademark mistakes that could have been avoided with adequate legal guidance.

To a startup, your brand name, logo, slogan, and packaging are not just things made of creativity-they are identity and hard-earned market reputation. In India, the Trade Marks Act, 1999, gives tremendous protection to any business, but only if the registration is done well. Courts have repeatedly held that neglecting due diligence can cost businesses not just money and time but even the right to use their own brand.

This article explains the 10 most common trademark mistakes startups in India make, with practical solutions and landmark case laws, to help you protect your intellectual property from the start.

Top 10 Trademark Mistakes Startups Make

1. Failing to Do a Trademark Search: “We Thought the Name Was Unique”

• Many founders presume that since they have not heard of the name in their city, it must be free to use. 
• First-Hand Experience: A Delhi-based apparel startup was advised to launch with a catchy name but was rejected because a similar brand existed in another state. They had to go through a complete rebranding process, losing early customers during the transition. 
• Fix It: Always search on the IP India website and check for phonetic similarities. Better, ask a lawyer for a clearance search.

2. Choosing a Generic Name: “But That’s What We Sell”

• Startups often pick names like “Fresh Milk” or “Best Electronics,” thinking it explains their product.
• First-Hand Experience: One client tried to register “Natural Juice.” The registry refused, saying it was descriptive and non-distinctive. They eventually coined a new name, which turned into a stronger brand.
• Fix It: Invented or coined words (e.g., “Zomato,” “OYO”) are far easier to protect.

3. Filing Under the Wrong Class: “We Didn’t Know There Were 45 of Them”

• India’s trademark system has 45 classes, but many startups file under only one.
• First-Hand Experience: A tech company filed only under “software,” but their app also dealt with financial services. When a rival in fintech used a similar name, they couldn’t enforce their rights.
• Fix It: List out your current and future activities, then file under all relevant classes.

4. Errors in Name or Address: “The Application Was in My Partner’s Name”

• Even small mistakes in the applicant’s name or address can create ownership issues.
• First-Hand Experience: There was a dispute where a startup’s trademark was filed under an individual founder. When he quit, the company had no control over the brand. It led to a bitter legal fight.
• Fix It: Use correct details as per your company’s incorporation documents.

5. Misunderstanding “Use in India”: “Should We File Before or After Launch?”

• Founders either wrongly claim prior use or wait too long to file.
• First-Hand Experience: A Bangalore-based SaaS startup delayed filing. By the time they launched, another company had already filed for a similar name. They spent months contesting instead of focusing on growth.
• Fix It: If not launched, file as “proposed to be used.” If using, submit proof like ads, invoices, or websites.

6. Ignoring Objections and Oppositions: “We Thought It Was Automatic”

• The Trademark Office often raises objections. Competitors may oppose filings. Many founders ignore notices.
• First-Hand Experience: A Hyderabad-based fashion brand lost its mark because it never replied to an examination report. They only realized it when they tried to raise funds, and investors asked for the trademark certificate.
• Fix It: Track your application online, and always reply to notices on time.

7. Launching Before Filing: “We Printed 5,000 Boxes Already”

• Startups often design logos, packaging, and websites before filing.
• First-Hand Experience: A food delivery startup launched nationally before filing. A rival claimed their mark was confusingly similar and got an injunction. Overnight, they had to halt operations.
• Fix It: File your application before launch and secure your domain names and handles.

8. Forgetting Renewals: “We Missed the 10-Year Deadline”

• Trademarks must be renewed every 10 years, but many forget.
• First-Hand Experience: An FMCG client lost their long-standing brand because no one remembered the renewal date. A competitor immediately applied for the same mark.
• Fix It: Set reminders six months before expiry, or have a lawyer track it.

9. Believing Indian Registration Covers Abroad: “But We Registered in India!”

• Some startups expand globally, assuming Indian protection is enough.
• First-Hand Experience: A startup entered Dubai only to find its brand was already registered by another business there. They had to buy it back at a huge cost.
• Fix It: File in target countries or use the Madrid Protocol for multi-national protection.

10. Not Monitoring Usage: “We Filed and Forgot”

• Many people think filing is enough. In reality, you must police your mark.
• First-Hand Experience: One client discovered a competitor using their brand name online. Because they hadn’t been monitoring, the infringer had built a following. Taking action became much harder.
• Fix It: Regularly check trademark filings and online platforms. Send cease-and-desist notices when needed.

Conclusion 

Every time it is advised to a founder who lost their brand, the same regret is seen: “We should have done this earlier.”

Trademarks are not just legal paperwork. They are the first line of defense of your startup and will remain an asset in the long run. If you evade these 10 all-too-common mistakes and seek some professional advice, you will be spared from rebranding expenses, court cases, and loss of investor confidence. Protect your brand today and have confidence in building your business tomorrow.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online for free through Lead India.

FAQs

1. Can I register a trademark before starting my business in India?

Yes, you can file a trademark as “proposed to be used.” This protects your brand name or logo before launch and prevents others from registering it.

2. Can a trademark be sold or assigned in India? 

Yes, trademarks can be assigned or licensed plus fully or partially. This lets startups monetize their trademark, or allow another business to use the trademark through an assignment.

3. What’s the difference between copyright and trademark in India? 

Copyright protects creative works like books, music, or designs. A trademark protects brand identifiers like the names, logos, or slogans. They serve different purposes, although they can work well together.