{"id":218419,"date":"2022-11-08T12:08:55","date_gmt":"2022-11-07T23:08:55","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=218419"},"modified":"2025-06-30T13:29:52","modified_gmt":"2025-06-30T00:29:52","slug":"failing-to-protect-your-brand-5-consequences","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/intellectual-property\/failing-to-protect-your-brand-5-consequences\/","title":{"rendered":"5 Potential Consequences of Failing to Protect Your NZ Brand"},"content":{"rendered":"\n<p>Failure to <a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/tips-managing-your-ip\/\">register your intellectual property (IP)<\/a> or acknowledge your competitors\u2019 IP may have consequences if you are a business owner. A trade mark is a type of IP you can apply to protect your business\u2019s brand. Further, a registered trade mark gives you the exclusive rights to use and commercialise your mark within your industry. This is important from a marketing, commercialisation and legal perspective. This article will take you through five potential consequences of failing to protect your brand.<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/10\/28132215\/trade-mark-essentials-NZ.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Trade Mark Essentials in New Zealand<\/div>\n            <div class=\"body-text\">\n                <p>Our free Trade Mark Essentials in New Zealand guide explains how to register and defend your trade mark registration.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/nz-trade-mark-guide.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">1. Risk Your Reputation<\/h2>\n\n\n\n<p>The key reason to register a trade mark with the&nbsp;<a target=\"_blank\" href=\"https:\/\/www.iponz.govt.nz\/\" rel=\"noreferrer noopener\">Intellectual Property Office of New Zealand<\/a>&nbsp;(IPONZ) is to protect your brand\u2019s reputation. Other businesses may use elements of your brand for their benefit if you do not protect it. This may have several adverse outcomes. For example, it could result in competitors providing lower-quality goods or services associated with your brand. Indeed, this can cause irreversible damage to your reputation.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Get Taken Advantage Of By Competitors&nbsp;<\/h2>\n\n\n\n<p>Another key reason to protect your brand with a trade mark is to avoid being taken advantage of by your competitors. This is because inadequate brand protection puts your business at risk of exploitation.&nbsp;<\/p>\n\n\n\n<p>A lack of trade mark registration may cause damage to your business\u2019 reputation. However, it is equally the case that your competitors may use your branding for their benefit. Without formal protection (such as a registered trade mark), you risk not being able to enforce your rights to your brand.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    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Engaging in Legal Proceedings&nbsp;<\/h2>\n\n\n\n<p>If you use another party\u2019s trade mark without their permission, they may take action against you to enforce their trade mark rights. Generally speaking, the first part of the enforcement process is to send an infringement notice or a cease and desist letter. This letter will likely demand that you stop any conduct infringing on their registered trade mark. However, there are several downsides to this. In particular, you might have to invest time and money into responding to this notice, which may include the need to rebrand.&nbsp;<\/p>\n\n\n\n<p>If you receive a notice of infringement but do not respond and continue use, they may take further legal measures or action to stop you. For example, they might file court proceedings to have an order made against you. In that case, they might also be able to claim compensation. <\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>Registering a trade mark for your brand assets will reduce the chance you infringe on another party\u2019s existing trade mark.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">4. Reduce Your Business\u2019 Value&nbsp;<\/h2>\n\n\n\n<p>Trade marks are intangible assets. Like all assets, they can be:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>bought;&nbsp;<\/li><li>sold;&nbsp;<\/li><li><a href=\"https:\/\/legalvision.co.nz\/trademarks\/license-trade-mark\/\">licensed<\/a>; or&nbsp;<\/li><li>even used as a security interest.&nbsp;<\/li><\/ul>\n\n\n\n<p>The fact that they are an asset means that the value of a mark can increase over time. Essentially, the value of your mark will grow alongside your business\u2019 reputation and goodwill.&nbsp;<\/p>\n\n\n\n<p>Further to their monetary value, <a href=\"https:\/\/legalvision.co.nz\/trademarks\/kinds-of-trade-marks\/\">a trade mark can provide a means through which your business expands<\/a> beyond one industry. Alternatively, a trade mark may also be why a more significant business acquires your business.<\/p>\n\n\n\n<p>You should pay attention to a registered trade mark\u2019s value and power. Indeed, failure to protect your trade mark means you are reducing your business\u2019 value.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Lose a Communication Channel&nbsp;<\/h2>\n\n\n\n<p>A key aspect of trade marks is their marketing benefits. Trade marks are an essential commercial communication tool that helps your brand stand out. A trade mark conveys crucial messages about the business behind the goods or services provided.<\/p>\n\n\n\n<p>Not registering a trade mark means you may lose an important communication channel with your customers. Customers viewing a trade mark should immediately know who they are dealing with and are less likely to look for alternatives. <\/p>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Your brand could be the critical factor driving a customer\u2019s purchase decision. Failure to capitalise on this by registering a mark may disadvantage your business compared to your competitors.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Failure to protect your business\u2019 IP or acknowledge your competitors\u2019 IP may have consequences. This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>risking your business\u2019 reputation;&nbsp;<\/li><li>getting taken advantage of by your competitors;&nbsp;<\/li><li>being required to engage in legal proceedings;<\/li><li>reducing your business\u2019 value; and&nbsp;<\/li><li>losing a critical communication channel with your customers.&nbsp;<\/li><\/ul>\n\n\n\n<p>If you need assistance protecting your brand, our experienced\u00a0<a href=\"https:\/\/legalvision.co.nz\/trademark-registration-lawyers-lp\">trade mark lawyers<\/a>\u00a0can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our\u00a0<a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1667862132740\"><strong class=\"schema-faq-question\"><strong>What is a trade mark?<\/strong><\/strong> <p class=\"schema-faq-answer\">A trade mark is one type of intellectual property (IP) you can apply to protect your business. Specifically, a trade mark protects your brand. A registered trade mark gives you the exclusive rights to use and commercialise your mark within your industry. This is important from a marketing, commercialisation and legal perspective.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1667862139176\"><strong class=\"schema-faq-question\"><strong>Why should I protect my brand?<\/strong><\/strong> <p class=\"schema-faq-answer\">Failure to protect your business\u2019 intellectual property or acknowledge your competitors\u2019 IP may have consequences. For example, you risk your business\u2019 reputation and may get taken advantage of without a registered trade mark. You may also need to engage in legal proceedings. Finally, failure to protect your brand may mean reducing your business\u2019 value and losing an important communication channel with your customers.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"90c4126e1b\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/218419\" \/>            <input value=\"https:\/\/legalvision.co.nz\/intellectual-property\/failing-to-protect-your-brand-5-consequences\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"5 Potential Consequences of Failing to Protect Your NZ Brand\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Failure to register your intellectual property (IP) or acknowledge your competitors\u2019 IP may have consequences if you are a business owner. A trade mark is a type of IP you can apply to protect your business\u2019s brand. Further, a registered trade mark gives you the exclusive rights to use and commercialise your mark within your<a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/failing-to-protect-your-brand-5-consequences\/\">Continue reading <span class=\"sr-only\">&#8220;5 Potential Consequences of Failing to Protect Your NZ Brand&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13267,"featured_media":215548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"210991,2311,211188,1010,202209,206473","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[2],"tags":[25,51,54,1086,1605],"class_list":["post-218419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-intellectual-property","tag-small-business","tag-intellectual-property","tag-medium-business","tag-trade-mark-registration","tag-infringement-notice"],"acf":[],"yoast_head":"<!-- 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She graduated with a Bachelor of Laws (Hons) from Bond University in 2018.","url":"https:\/\/legalvision.co.nz\/author\/emilyyoung\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/intellectual-property\/failing-to-protect-your-brand-5-consequences\/#faq-question-1667862132740","name":"What is a trade mark?","acceptedAnswer":{"@type":"Answer","text":"A trade mark is one type of intellectual property (IP) you can apply to protect your business. Specifically, a trade mark protects your brand. A registered trade mark gives you the exclusive rights to use and commercialise your mark within your industry. This is important from a marketing, commercialisation and legal perspective.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/intellectual-property\/failing-to-protect-your-brand-5-consequences\/#faq-question-1667862139176","name":"Why should I protect my brand?","acceptedAnswer":{"@type":"Answer","text":"Failure to protect your business\u2019 intellectual property or acknowledge your competitors\u2019 IP may have consequences. For example, you risk your business\u2019 reputation and may get taken advantage of without a registered trade mark. You may also need to engage in legal proceedings. Finally, failure to protect your brand may mean reducing your business\u2019 value and losing an important communication channel with your customers.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/218419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13267"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=218419"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/218419\/revisions"}],"predecessor-version":[{"id":229161,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/218419\/revisions\/229161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/215548"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=218419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=218419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=218419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}