The Value Of Trade Marks In The F&B Industry

• Published date: 19 June 2020
• Author: Joanna Caplan
• Subject Matter: Intellectual Property, Trademark
• Law Firm: Dehns

Brands are vital to any organisation operating in the food and beverage manufacturing business.

It's no coincidence that many of the world's most successful companies, with their highly recognisable trade marks, are found in the food and beverage sector.

Every day we all encounter multiple trade marks, from the moment we eat our Kellogg's breakfast cereal, to grabbing our Costa coffee on the way in to the office, followed by our Pret A Manger sandwich at lunch.

Trade marks have long been recognised as a vital asset for businesses in the food and beverage industry. The first ever trade mark to be filed at the UK Intellectual Property Office was for Bass Brewery's triangle logo in 1876. Some of the world's most successful brands belong to the food and beverage sector, including Coca-Cola, McDonald's, Budweiser and Pepsi.

Trade marks play a huge role in consumer purchasing decisions. In a competitive market where multiple lookalike products line the supermarket shelves, a trade mark distinguishes the goods (or services) of one business from those of other businesses, and a strong brand image encourages brand loyalty leading to repeated purchases by consumers.

A successful trade mark can communicate multiple messages to consumers, including the quality of the goods/services, the ethical stance of a business or the reputation of that business. Furthermore, as trade marks can be bought, licensed or used as a security interest in financial transactions, they are very valuable assets.

Companies often spend significant amounts on advertising and promoting their brands, but protecting and defending your brand is of equal (if not more!) importance.

Whilst unregistered rights in marks and signs can, in certain circumstances, be enforced against third parties, the required goodwill can take many years to establish and the evidential burden and associated costs of relying on such rights is high.

On the other hand, a trade mark registration puts businesses in a much stronger position to take action against third parties looking to use or register conflicting marks and, in cases of trade mark infringement, to seek the appropriate remedies. Many of the most successful brands, including Coca-Cola and McDonald's, are known for vigorously defending their trade mark rights in this manner.

What can be protected as a trade mark?

Traditionally, trade marks have comprised word marks (such as McDonald's) and logos (such as McDonalds' Golden Arch Logo). Generally speaking...