Functions and Types of Trademark for Indian MSMEs

Table of Contents

• Introduction
• Understanding the Functions of a Trademark
• Types and Kinds of Trademarks
• Real Trademark Challenges Faced by MSMEs — And How to Handle Them
• Conclusion

You’ve named your business. You’ve invested in packaging. Maybe you even have a logo you’re proud of. But here’s the tough question—can anyone else legally use that name tomorrow? This is something most small business owners don’t think about until it’s too late. We’re usually caught up in daily operations—orders, payments, hiring, vendor follow-ups. Formalities like trademarks get pushed aside. “We’ll do it later,” we tell ourselves.

But later has consequences.

A founder of a local textile brand from Surat who had spent five years building a name in the wholesale market—steady orders, good supplier relationships, even a small export deal on the table. Then came the shock. A new seller popped up online, using the same brand name, with eerily similar packaging. Customers started calling, confused. She had no trademark. No paperwork. No legal ground to stand on.

She’d thought, “I didn’t think anyone would copy us—we’re too small.” But the truth is, being small makes you even more vulnerable. Trademarks aren’t just for big companies with legal teams. They’re for every MSME trying to build something of its own.

Think of it this way—if your brand name is helping you win orders, it’s worth protecting. You wouldn’t leave your inventory unlocked overnight. So why leave your brand exposed?

Understanding the Functions of a Trademark

For most small business owners, the brand is personal. You picked the name, maybe even designed the logo yourself. But what many forget is this: until it’s legally registered, your brand isn’t really yours.

A trademark gives you that ownership. That’s its first—and most important—function.

It protects your business name, your packaging, your identity from being copied or misused. Once registered, your trademark acts like a lock. It tells others: this brand belongs to someone, and it can’t be used without permission.

But that’s not all. A trademark also builds trust. Buyers often check if a business has a registered mark—especially in wholesale, export, or government supply. For them, it’s a sign of legitimacy. And in markets where competition is tight, that little ® symbol can make a difference.

There’s also long-term value. If your brand grows and you want to expand—whether it’s through franchising, partnerships, or online platforms—your trademark becomes a business asset. You can license it. You can sell it. You can defend it. None of this is possible without formal ownership.

One MSME —a food startup in Nagpur—learned this the hard way. Their chutney brand caught on quickly. But with no trademark in place, a reseller copied their name online. They lost customers, had to rebrand, and spent months cleaning up. A simple registration could’ve saved them lakhs.

To put it simply, here’s what a trademark does for your MSME:

• It safeguards your brand identity from being misused.
• It signals professionalism to buyers and partners.
• It adds value if you grow, raise funds, or sell your business.
• It equips you legally to fight infringement.

This isn’t red tape. It’s protection—plain and simple.

Types and Kinds of Trademarks

When you register a trademark, you’re not just locking down a name—you’re deciding what exactly you want to protect. And that decision matters. Because if you file the wrong kind, or miss one entirely, you might still end up in trouble down the line.

Most MSMEs think of trademarks as a single thing. In reality, there are different categories—and you need to know which ones apply to your business.

Word Marks: Just the Name, Nothing Else

A word mark gives you legal rights over the name of your business or brand, plain and simple. No logos, no colours, no designs—just the word itself.

If your customers remember your business by name, this is the mark you need first.

Take the example of a cleaning product company in Nashik. Their brand name was “FreshGlow.” They hadn’t registered it, but when a similar brand—“FreshGlo”—hit the shelves with cheaper prices, they had no legal grounds to act. Had they filed a word mark, they could’ve stopped it early.

If your packaging is still evolving or you haven’t finalised your design, this is where you begin.

Device Marks: Logos, Icons, and Design Elements

A device mark protects the visual parts of your brand—your logo, colour arrangement, layout, or any specific styling. If your branding depends heavily on how something looks—not just what it’s called—you’ll need this.

A company in Ahmedabad made masalas. Their name wasn’t unique, but their red-and-yellow logo was well known in their local market. A competitor copied the design, changed just one letter in the name, and started selling. Customers couldn’t tell the difference. The client had a word mark but no device mark—so their hands were tied.

If you’re investing in printed labels, stickers, storefront boards, or product packaging, protect the design along with the name.

Service Marks: For Non-Product Businesses

If you’re in a service-based business—consulting, legal, repair, logistics—you’re not selling physical goods. But you still need trademark protection. In this case, it’s filed as a service mark.

Legally, it’s the same process, but it falls under a different category or class. Don’t ignore this just because you’re not manufacturing anything. Your brand name still needs protection—especially if you’re advertising or growing through referrals.

Other Marks: Only if You Really Need Them

There are a few more types—sound marks, shape marks, certification marks—but unless you’re doing something unique (like a jingle or a trade association), you likely don’t need these right away.

Most early-stage MSMEs do just fine with a word mark, and sometimes a device mark, depending on how they present themselves.

What’s Worth Registering?

Here’s the practical view:

• If your customers remember your name — file a word mark.
• If your look is what they recognise — file a device mark.
• If you don’t sell goods but offer services — register under the right class as a service mark.

Don’t overthink it, but don’t skip it either. Once your business name is out there, and especially once money starts moving around it, you need to know it’s protected.

Real Trademark Challenges Faced by MSMEs — And How to Handle Them

For most small businesses, filing the trademark application feels like the hard part. But the real issues often come after the paperwork. This is the part nobody warns you about—until it happens.

Let’s walk through the problems MSMEs commonly run into, and how to deal with them early.

Someone Still Copies Your Brand — Even After Registration

Yes, it happens. You register your mark, spend time and money, and one day find someone in another city using a similar name, logo, or packaging. You feel stuck.

What to do:

• Send a cease-and-desist letter (preferably through a legal advisor).
• If the other party doesn’t back down, file an infringement suit—it doesn’t need to be high-profile, just assertive enough to protect your turf.
• Keep a digital record of customer confusion (emails, messages, photos). This builds your case.

A small honey brand in Uttarakhand faced this exact issue. Their jars were copied by another seller online. What helped them win the case? Photos from local stores showing confused customers—and an early registration with clear date stamps.

Trademark Gets Rejected or Opposed

Not every application goes through smoothly. MSMEs often get rejection notices or see their application “opposed” by someone with a similar brand.

Common reasons:

• You picked a name that’s too generic or already in use.
• The description of goods/services was unclear or mismatched.
• There was a spelling similarity with an older brand.

What to do:

• Don’t panic. You usually have a chance to respond and clarify.
• If needed, revise the mark slightly (without losing your identity).
• For oppositions, you’ll need to submit a counter-statement—this is where a trademark attorney can really help.

Internal Oversights: Wrong Class, Missed Renewal, or Staff Errors

Many MSMEs assign the trademark filing to an external consultant or junior employee—and then forget about it. Months later, they find out it was filed under the wrong class, or worse, never renewed.

What to do:

• Keep a central record of all IP filings with dates and login credentials.
• Set renewal reminders—trademarks need renewal every 10 years.
• Double-check that you’ve filed for the right category (goods vs. services) and the correct brand version.

A Delhi-based startup once filed their word mark under “software services” but sold hardware kits. When a dispute came up, the filing didn’t hold up. They had to start again.

Marketplace Conflicts — Amazon, Flipkart, Etc.

This one is becoming more common. You register your mark, but when you try to sell online, someone else is already using the name or has filed a complaint against you.

What to do:

• Always keep your registration certificate ready to show the platform.
• File for Brand Registry on marketplaces like Amazon as soon as you register.
• Monitor your listings regularly—these issues are often automated and hard to reverse if ignored.

Bottom Line

Registering a trademark is step one. Maintaining and defending it is what protects your business in the long run.

Think of it like this: a trademark is not a trophy. It’s a working tool. You need to watch over it, update it, and be ready to use it if someone tries to take advantage of your brand.

Conclusion

Here’s the truth most MSMEs discover the hard way—you can pour your heart into building a brand, and still lose it in a blink.

Not because you did something wrong. But because someone else moved faster to protect what you didn’t.

That logo you sketched on a napkin? The tagline that clicked with your customers? The name that now shows up on packaging, invoices, maybe even billboards? If it’s not trademarked, it’s vulnerable.

Too often, business owners file trademarks only after they’ve had a close call—or worse, after someone else has filed it first.

And let’s be honest. No founder starts out thinking about intellectual property. We think about cash flow, finding customers, surviving the month. A trademark feels like legal clutter… until it isn’t.

Here’s what it really is: a silent asset. A warning sign to anyone who thinks your work is up for grabs. A signature of intent.

File it before you need to. Not after. Because if a rival—or even a random seller—copies your brand, you’ll need proof that it’s yours. Emotion won’t win that fight. Paperwork will.

So protect your name. Not tomorrow. Not once the business “stabilises.” Now.

You’ve already built something worth owning. Make sure it stays yours.

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