In today’s ever-changing market ecosystem, a business name without trademark registration is leaning towards failure – a great mistake that most entrepreneurs would commit.
For some reason, trademark registration is often overlooked and gained misconceptions, such as its expensive costs, high complex transactions, cumbersome application, etc. But these are mere short-term outlooks.
But what you don’t know is that at the end of trademark registration awaits many more opportunities for your business’s return of investment. As a rule of thumb for success, setting higher expectations require higher protection, particularly against trademark infringers.
Hence, this article will help you determine how much does a trademark cost and how doable it is for your business.
Which is which State Trademarks or Federal Trademarks?
The protection of your trademark matters on the nature of your business, geographical setting, targeted market, and source production – everything that involves the optimization of your profit. In other words, you need to assess your goals before you file for a trademark application since not all trademarks have all equal protection.
In registering for a trademark, you have two options: state trademarks or federal trademarks.
State Trademarks
When your business runs under a local institution, or you aim to protect your brand under a local protection, then consider getting a state trademark. Usually, this type of trademark protection is commonly availed by local brands that don’t have plans to expand the market.
Here, you only have to register your trademark under a state authority. Once you have obtained a state registration, then you’ll only enjoy a limited trademark protection.
State trademark registration varies from one state to another, with a lesser hassle and cheaper fees compared to federal trademark registration. Generally, you only need to fill out a form, provide a specimen or drawing of your trademark, and pay for a lesser filing fee as low as $50. But remember, you can’t file a state trademark application unless you have an actual use of your mark in commerce.
As already said that your trademark protection is limited, state trademarks won’t allow you to use the trademark symbol “R.”
Federal Trademarks
On the other hand, federal trademarks guarantee you a nationwide protection for your brand. Although it has higher costs and tedious application process than the state trademark registration, a federal trademark provides you greater rights and benefits.
Federal trademarks are directly registered to the United States Patent and Trademark Office (USPTO). Once you have successfully obtained a trademark, you can expand your market and promote your brand outside of your state. In other words, it guarantees both state and federal protection. If you’re unsure about the process, seeking legal help with trademark registration can ensure that your application is handled correctly and efficiently, providing you with greater rights and benefits.
During a federal trademark application, you have to provide the following:
- Your name as the “mark’s owner”;
- The type of mark – whether it is a word mark, design mark, or certification mark;
- A drawing and a specimen of your mark;
- A detailed description of the classification of your goods or services; and
- A filing basis.
Unlike a state trademark, you can file for a federal trademark registration even if you have yet to use your mark in commerce. Also, you’ll enjoy the rights of using the trademark symbol “R.”
Because of the superior protection brought by a federal trademark, you can directly bring a trademark lawsuit in a federal court. Hence, the public will notice the record of marks in the USPTO’s database.
J.D. Houvener, a Trademark attorney serving San Francisco, suggests that if you have a business brand online, you need to get a federal protection. Undoubtedly, your extended transactions outside of your state will protect your brand from trademark infringement.
How much does a trademark cost?
The question seems to be the highlight for every person who aspires to apply for trademark registration.
But to give you a quick and brief explanation on how to determine a trademark cost, there are two fees to consider: (1) fees that you’ll pay in a State or Federal trademark registration, and (2) professional fees for your trademark attorney.
(1) State and Federal Trademark Registration Fees
State Trademarks
As already mentioned, state trademarks provide a cheaper and less hassle trademark process. Remember that every state has different trademark laws and regulations. But commonly, the filing fee for a state trademark ranges from $50 to $70.
For instance, the State of California offers a filing fee of $70 per classification. Their classification of goods and services are those adopted by the USPTO, and such a single application may include multiple classification of goods.
Hence, you can save as high as $200 when you file a state trademark.
Federal Trademarks
The USPTO is the governing authority that regulates the fees for federal trademark application.
As a general rule, USPTO calculates your trademark fees per mark on a classification basis.
What does it mean?
One file per trademark application. If you file for another, it requires you to pay another fee. The same goes for the classification of your goods or services – you get additional charges for another class.
Moreover, USPTO provides two options for your Trademark Electronic Application Service (TEAS) fees:
- TEAS Plus – $255 per class of goods or services;
- TEAS Standard – $275 per class of goods or services;
Yes, you can now file for a federal trademark registration even without an actual use of the mark in the commerce through an Intent-to-Use or the Sec. 2(b) filing basis. Here, USPTO allows you a late submission for your specimen and drawing. However, it constitutes another miscellaneous charges:
- When you request for an extension of time and delay your application – $125;
- When you submit your actual proof – $100.
(2) Attorney’s Fee
You can file a trademark registration on your own. However, due to its rigid and complex process, self-processing applications obtain more rejections than applications assisted by lawyers.
Trademark applications don’t end after you submit your requirements. You need to respond to Office Actions, which contains technical and legal terms that would confuse you.
Hence, hiring a trademark attorney boosts your confidence and speeds up your effort in applying for trademark registration. How much does a trademark lawyer rate?
Most sources agreed that a trademark lawyer costs around $1000 to $2000 for the general trademark process, but disputes cost the client an additional $300 to $400 an hour.
Clients should expect to pay between $2,000 and $3,000 for a comprehensive trademark service. If you’re paying less than the said costs, then you would likely lose hope.
However, do you need to pay for a lawyer when your phone call amounts to an additional charge?
Thus, when you look for a trademark lawyer, always remember the package he provides:
- A comprehensive trademark search;
- A flat-fee trademark lawyer costs;
- A filing fees for trademark application; and
- A free phone call.
If you’re looking for cost-effective and proven results in trademark registration, Bold Patent offers more than what you expect. With unlimited perks and transparent processes, your trademark application is a no-brainer. Book your free consultation and see how Bold Patent can transform your brand!
Key Takeaways
A great mistake that most entrepreneurs would commit is running a business without a trademark protection. Because of its vulnerability from trademark infringers, paying legal costs is higher than what you could profit.
Hence, there is a great return of investment in trademark registration in your branding, protection, and market expansion.
What kind of protection do you need?
Moreover, trademark protection has two categories: state trademarks and federal trademarks.
For state trademarks:
- Lesser hassle in the application process;
- It is appropriate for businesses that want to promote locally;
- Legal protection only limits to where your trademark is registered;
For federal trademarks:
- Expand your market and promote your brand outside of your state. In other words, it guarantees both state and federal protection;
- Provide rights of using the trademark symbol “R”;
- Guarantees you to bring a trademark lawsuit in a federal court. Hence, the public will notice the record of mark in the USPTO’s database; and
- Fit for online businesses that have external transactions.
How much does a trademark cost?
- State trademarks – $50 to $70 per filed application, depending on what state;
- Federal trademarks
As per you initial application, the rate starts at:
-
- TEAS Plus – $255 per class of goods or services;
- TEAS Standard – $275 per class of goods or services;
As per submission of specimen and drawing in your Intent-to-Use application, additional fees include:
- When you request for an extension of time and delay your application – $125;
- When you submit your actual proof – $100.9
- Lawyers Fee – $2,000 and $3,000, which includes:
- A comprehensive trademark search;
- A flat-fee trademark lawyer costs;
- A filing fees for trademark application; and
- A free phone call.
