Having said that, why do companies need to register trademarks? A trademark is the "brand" of a company. Companies register a trademark to make it easier for consumers to recognize the brand and shop. Although "Chanel", "Dior", "Lancome" and "Burberry" all produce perfumes, consumers will not confuse their products. This is exactly the role of trademarks! After a company successfully registers a trademark, it is time to operate the brand and cultivate consumers consumption habits, thereby expanding the market.

With the development of social economy, a wide variety of goods flood the market. Consumers need a way to quickly and effectively identify different products, and goods with good market reputation will undoubtedly become consumers' first choice. First choice! We usually choose well-known brands when shopping, precisely because of our trust in these brands. Not only do consumers “recognize brands”, local industrial and commercial bureaus at all levels also supervise the quality of goods and services through trademark management. It can be said that trademark is a carrier and a bridge to communicate with various market entities. Of course, the significance of a trademark to an enterprise goes far beyond that. A trademark is an intangible asset whose value can be evaluated; actual economic benefits can also be obtained through transfer, licensing or pledge.

A fatal flaw when an enterprise uses an unregistered trademark is that it does not enjoy the exclusive right to the trademark. In other words, others can use this trademark freely without infringement. Let us assume that a high-quality and low-price product produced by Company A has been recognized by consumers, and it has gained good profits after successfully opening the market. Later, Company B felt it was profitable, so it also introduced a batch of low-cost and low-quality products of the same name to the market. Because the trademarks used by both companies are the same, consumers will naturally think that all products are produced by Company A. While Company B is making profits, it also damages the reputation of the brand with these inferior products of the same name. When company A affects market sales due to company B's behavior, it will find that it is powerless to deal with this situation. Because the trademark has been registered, Company A does not enjoy the exclusive right to use the trademark. It cannot require Company B to stop unfair competition through legal channels, nor can it require Company B to compensate for losses.