If you’re starting a business, you’ll need to decide how to legally protect your brand and its assets, depending on the type of business you want to start. Trademarks, copyrights and patents are all forms of intellectual property (IP) and they can help you protect the things you create for your business — but how do you know which one you need to pursue?
Below, CNBC Select explains the differences between trademarks, copyrights and patents. Read on for more information and to learn about the business formation tools and services we recommend.
What’s a trademark?
A trademark is simply a word, phrase or symbol associated with a product or service that helps customers identify the brand. Trademarks are popularly denoted by the “™” symbol (TM for trademark). Using the symbol lets people know that you claim the trademark as your own. The “®” symbol is another popular trademark that you can use if you register your trademark federally with the United States Patent and Trademark Office (USPTO).
What’s a copyright?
A copyright gives a creator exclusive control over a piece of work they produce, like a photograph, artwork, music and more. Once you produce a piece of work, you are already the owner of the copyright, so you don’t actually need to register a copyright.
What’s a patent?
A patent is an exclusive right granted by the government for inventions for a limited time. Patents are usually good for around 20 years and patent holders may need to pay to maintain the patent every few years.
How to register for a trademark, copyright or patent
To register a trademark, you can fill out an application on the USPTO website. You can also use a business formation service like LegalZoom to go through the trademark registration process, especially if you’ve already used them to register your business. LegalZoom assists with copyright registration and provisional patent applications, too.
LegalZoom (Small Business Services)
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Cost
$0 + state filing fees for Basic plan; $249 + state filing fees for Pro plan; $299 + state filing fees for Premium plan
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App available?
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Standout features
LegalZoom offers all sorts of services to help you register your business, fulfill annual reporting and licensing requirements and protect your business with trademarking, copyrighting and assistance from attorneys.
Pros
- For the Basic plan you’ll just pay the state filing fee
- Well-known brand in the industry
Cons
- LegalZoom charges additional fees for some services even with the Pro and Premium plans. For instance, LZ Books is free for one year then $9.99/month after; the Business Attorney plan for Premium is free for 30 days then $49/month after
- Registered agent service is quite pricey at $249/year
Provisional patents are just a temporary filing for an invention to buy you some time to go through the full process. If your invention goes through this, you can receive “patent pending” status for 12 months. But if you prefer to “DIY” your way to a patent, you can also do this on the USPTO website.
Bizee is another platform that can help you register your trademark. Its package includes legal guidance on trademarking, a search to make sure the trademark isn’t already taken, registration with the USPTO and communication management with the USPTO until your trademark registration has been approved. Currently, Bizee doesn’t assist with patent or copyright registration, only trademark registration.
Bizee
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Cost
$0 + state filing fee for Basic plan; $199 + state filing fee for Standard plan; $299 + state filing fee for Premium plan
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App available?
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Standout features
Bizee offers several valuable features, including one year free for a Registered Agent service. The platform also offers compliance alerts, business banking, business tax consulting and more.
Pros
- Offers one free year of Registered Agent service
- Offers lifetime compliance alerts included in all packages
- Premium package includes expedited filing
Everything that these forms of IP protect
Now that you have a general gist of what trademarks, copyrights and patents are and how to register for one, here’s a deeper dive into what aspects of the business they protect.
What a trademark protects
Trademarks are specific to a product or service and can be used for multiple goods and services within your brand.
Registering a trademark in your category prevents another company from registering that same name for a brand in the same category. For instance, registering a trademark for a bakery called The Sweet Escape™ prevents another bakery from trademarking the name The Sweet Escape™. So, when registering your trademark, you’ll need to be specific about the types of goods or services your trademark will be associated with.
Having a strong trademark makes it clear when another brand is using your IP and it allows you to easily defend your brand’s use of the trademark. Think about “Coca-Cola” — it’s such a specific name associated with soda products. And as a clearly trademarked brand, Coca-Cola can easily go after beverage companies that try to register the name since they’ve already laid claim to the trademark.
According to the USPTO, strong trademarks are usually very creative and set your brand apart from competitors. Think of core examples like “Google,” “Apple” and “Jaguar.”
What a copyright protects
A copyright protects the creator from having their work used, distributed or reproduced by other individuals. In fact, there are five fundamental rights granted by a copyright: reproduction, adaptation, publication, performance and display.
Copyrights do not, however, protect ideas, facts, mathematical concepts or procedures. A copyright also doesn’t protect spoken words that aren’t recorded.
Copyrights for works created on or after January 1, 1978, are protected for the life of the creator, plus 70 years after the creator’s death.
Again, you don’t need to register a copyright because you own the copyright once you create the work. However, you can still register a claim to a copyright for an added layer of protection through the U.S. Copyright Office.
What a patent protects
Patents allow the inventor to exclude other individuals from making, selling and even using their invention — and if they do infringe on one’s patent, they can pursue legal action against them.
In order to receive patent protection, an invention must be novel, useful, involve an inventive step and be industrially applicable.
Patents can be expensive and the total cost for filing a patent and maintaining it over its 20-year term depends on the type of patent you’re filing, with biotechnology patents being some of the most expensive patents. But the total cost for filing and maintaining a patent can range from $20,000 to $60,000, according to Dilworth IP and the University of Louisiana at Lafayette. Basic filing fees for a patent can depend on the type of patent you’re filing and can cost a few hundred dollars. Additionally, it may take up to a few years to actually have your application reviewed and approved — usually 18 to 36 months.
FAQs
Should I get an LLC or a trademark first?
It’s generally a good idea to establish your LLC first so you can establish the entity that will own the trademark.
How much does a trademark cost?
According to the USPTO, the base cost for a trademark filing is $350 for just one class of trademark (good or service), plus $350 for each additional class you need a trademark for.
How much does a copyright cost?
Filing an electronic copyright claim costs $45 for a single author and the application is $65. Paper filing costs $125, according to Copyright.gov.
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