From idea to IPO: a guide to Indian trademark protection for startups

In the life cycle of a startup, few assets are as powerful yet underestimated as intellectual property (IP). Among the various forms of IP, trademarks hold a special place not just as legal protection but as a strategic tool that defines a company’s identity and increases its value.

Trademarks signal authenticity, credibility, and trust for customers and investors alike. For a startup, knowing when and how to protect this asset can make all the difference between creating a viable brand and facing costly setbacks.

This article outlines how trademark strategy and legal safeguards should evolve in parallel with a startup’s growth, providing guidance at each stage of development.

Every successful startup journey begins at the ideation stage. This is the time when startups conceptualise names, logos, and visual identities that represent their mission and values. Adopting a distinctive and protectable brand should be the goal at this point.

The distinctiveness of a brand name decides the registrability and its protection as a trademark. In other words, startups should avoid adopting marks that are generic, laudatory, or descriptive in nature, such as ‘comfort’, ‘stylish n fabulous’, or ‘work attire’ for a clothing company. Marks that describe the products or identify the nature of services are hard to protect. Instead, startups should endeavour to create inventive, distinctive, or arbitrary names, such as “Allen Solly” and “Raymond” for clothing, both of which have become strong Indian brands with distinctive identities.

Before adopting the trademark/brand, it is important to conduct comprehensive trademark and common law searches with the assistance of IP experts. This helps to avoid any conflicts with any existing brand, post launch. Otherwise, the startup may have to undertake a rebranding exercise because of potential conflicts, oppositions, or related legal actions. This can be an expensive and embarrassing experience at an early stage of business.

It is better to clear the brand name, business name, and domain name at the same time. The same name should also be kept for social media handles for a uniform brand identity and easier recall by consumers. In other words, follow the ‘one name everywhere’ rule. At times, startups neglect to seek trademark registration, and if any other business in the interim takes the brand name for identical or similar goods, it may become an expensive exercise to reclaim it.

Startups should set out brand guidelines and a robust brand strategy from the outset. This involves ensuring consistency in representation of not only the brand but also core elements such as logo design and brand colours to build a strong recall value. Aligning these efforts with the company's long-term vision ensures the brand can scale coherently and successfully as the business grows.

After a brand clearance has been completed and the brand name shortlisted, attention should turn to obtaining formal legal rights for the trademark through registration. Trademark applications should be filed strategically. Depending on the strength of the mark, the startup can aim for claiming priority by filing as soon as possible or by relying on substantial use and established goodwill. It is best to seek an IP professional’s advice to determine the strategy based on a startup budget and business priorities.

India is a signatory to the Nice Classification system, which categorises goods and services into 45 classes. Registration in multiple appropriate classes based on a business’s vision can give broader protection to trademarks. Delays and objections from the trademark registry may be prevented by avoiding mistakes in classification, vague goods/services descriptions, incomplete documentation, and other procedural errors. The trademark application filing process is governed by the Trade Marks Act, 1999, and administered by the Office of the Controller General of Patents, Designs and Trade Marks. Trademark applications are now managed digitally and can be submitted online via the IP India portal.

Companies can immediately use the ™ symbol after filing a trademark application. If granted registration, the ® symbol can be used, representing an officially registered mark. It is pertinent that the ® symbol is not used before obtaining registration.

Once a startup has started to scale and begins to expand its business, it becomes a strategic necessity to bolster its trademark portfolio. It is crucial to evaluate the gaps and apply for trademarks that may have been deferred due to budget constraints. This can include filing for a particular stylisation of the logo, individual distinctive components of the marks, and colour combinations.

At the expansion stage, businesses may also focus on potential markets and seeking protection for related goods and services, which the company may want to expand into in the near future. They should therefore commence filing trademarks to protect their rights for potential expansion. There are international agreements that provide for filing applications in multiple countries with a single application. For example, the Madrid Protocol allows Indian entities to register in multiple countries with a single application. Such expansion also brings the risk of conflicts with existing players in the market. Therefore, it is recommended to conduct research, seek the opinions of industry experts and IP lawyers, and make informed decisions to avoid disputes.

It is equally important to monitor, identify, and enforce rights against infringers, counterfeiters, and competitors. Timely and aggressive action is often required to avoid the dilution of trademark rights and the protection of reputation, goodwill, and the consumer base.

As a company approaches the IPO stage, the strength of its trademark portfolio provides investors, partners, and customers with confidence that the company manages its IP responsibly and indicates stability. It is also essential for regulatory scrutiny. Ensuring that a company’s key marks are registered, uncontested, and enforceable across relevant jurisdictions becomes vital as unresolved IP risks can influence and delay the listing procedure.

It is recommended that a trademark audit be conducted to create a complete list of trademarks, domain names, and related agreements, and to identify gaps to ensure transparency and mitigate risks. Valuation experts often consider trademarks as a part of the broader tangible asset base, as they embody brand recognition and customer loyalty. A strategically managed trademark portfolio indicates a defendable market position, which is likely to deliver value post listing as well.

A startup’s trademark portfolio and strategy must evolve in step with its business plan. It is vital to create a robust trademark portfolio in line with the long-term vision and goals of the company.

Strong trademarks not only secure brand identity but also enhance valuation, investor confidence, and competitive resilience. Therefore, startups or any business should not view trademark protection as an optional or discretionary cost. Instead, it should be seen as a strategic investment in the company’s future and stability, which has the potential to safeguard hard-earned goodwill and support growth.