Trademark Strategy for Startups: What Early-Stage Companies Overlook in Their Rush to Market
Introduction
Starting up is intense. Between trying to shape your product, convincing investors to back you, pulling a team together, and rushing to be the first one out there, it’s no surprise that legal stuff often gets left for later. But there’s one thing a lot of early-stage companies in India miss—and it’s not accounting or fundraising. It’s trademarks.
Most founders think of trademark protection as paperwork. Something optional. But it’s a lot more than that. It’s what protects your brand name, builds trust with your users, and keeps someone else from running off with your identity. And yet, plenty of startups either delay filing, pick names they can’t protect, or move forward without even checking if someone else already owns the mark.
This blog walks through what early founders tend to overlook when it comes to trademarks, breaks down how the law actually works in India, and lays out a practical, no-fluff guide to protecting your brand before things get messy.
Why Startups Underestimate Trademarks
Why Startups Often Overlook Trademarks
When you’re building a company from scratch, it’s easy to focus on everything else first—product design, team building, fundraising, user growth. Trademarks? They don’t feel urgent until something goes wrong. Here’s where early-stage founders usually slip up:
- They think they already own the name
Many assume that once they start using a name in public, they automatically have the rights to it. But under Indian law, that’s not how it works. Registration gives you stronger legal footing. Without it, someone else can register your name and block you from using it.
- Legal costs feel like a luxury
In the early days, every expense is carefully weighed. Paying for trademark filings might feel like a “later” problem when funds are tight. But skipping it now could cost much more down the road—especially if you’re forced to rebrand.
- They believe their brand is too niche to copy
Founders often think, “No one else will come up with this name.” That confidence can be risky. Even if someone else didn’t intentionally copy you, if their brand is too close to yours, you’ll be the one without legal recourse if they registered it first.
- They just don’t know the rules
Not everyone knows how trademarks actually work in India. Some think using ™ means they’re protected. Others don’t realize that registration is what gives you legal rights—and it’s not automatic.
These early missteps may seem small, but they can snowball. A legal notice, a forced name change, or a stalled funding round can hit hard—and often when you’re least ready for it.
The Legal Framework in India
In India, trademarks are covered under the Trade Marks Act, 1999. Whether you’re applying for one or handling a dispute, it is managed by the office of the Controller General of Patents, Designs and Trade Marks. [i]They’re the ones who review your application, check for conflicts, and deal with objections if anything comes up.
Here’s what most startup founders actually need to know:
- You can trademark more than just a name – Logos, taglines, words, even sounds or colors—if it helps people recognize your brand, there’s a good chance it can be protected.
- You don’t need to be using the name yet – A lot of people think you have to already be selling something before filing. But in India, you can apply even if you just plan to use the brand soon. It’s called a “proposed to be used” application.
- It’s not about who used it first, but who filed first. – That surprises a lot of founders. In India, the person who registers the trademark first usually wins, even if someone else used the name earlier. If you delay, someone else might beat you to it and legally block you.
- Once approved, you’re protected for 10 years. – And after that, you can just keep renewing it every ten years. There’s no limit as long as you’re using the mark.
What really matters is that once you register, your brand is legally yours. You’re no longer just hoping no one else copies it—you can actually do something about it. If someone tries, you’ve got the law on your side. And in many cases, that’s enough to stop problems before they even start
Startup Mistakes That Lead to Trademark Trouble
- Picking a name without checking if it’s available
A lot of startups choose a name that feels right and start using it right away—without checking if someone else already owns it. That can backfire. Later, they might get a legal notice or discover that another business has already registered the same or a confusingly similar name.
Example: In Resilient Innovations Pvt. Ltd., v. PhonePe Pvt. Ltd, the dispute was over the use of a similar suffix. Though settled, it highlights the importance of early brand audits and clearance checks.[ii]. The case eventually settled, but it’s a clear reminder of why an early brand check can save a lot of trouble later on.
- Using names that sound too generic
Names like “Fresh Snacks” or “Fast Deliveries” might describe your product well, but they’re usually too bland to register or protect. These kinds of names don’t stand out in the eyes of the law. They get rejected under Section 9 of the Trade Marks Act[iii] because they aren’t distinctive enough.
It’s much smarter to go for names that are creative or unusual—like “Zomato” or “Swiggy.” Those are easier to protect because they’re unique and don’t just describe what you do.
- Only registering the name, not the rest
Sometimes founders remember to register the company or brand name, but forget the logo, slogan, or even the design of their product packaging. Those things matter too. They’re part of your brand’s identity and can be individually protected if registered properly.
- Filing under the wrong trademark class—or just one
A lot of startups operate in more than one space, but they only file their trademark under a single class—usually whatever seems most obvious. For example, a health-tech app might file under software, but forget to cover healthcare services. That gap leaves room for others to step in.
India follows the Nice Classification system, which includes 45 different classes[iv]. Picking the right ones (and enough of them) is key to full protection.
- Not keeping an eye on your mark after it’s registered
Just registering a trademark isn’t the finish line. You still have to watch out for copycats or similar marks popping up. That means checking new applications, setting up alerts, and being ready to file objections or take action when needed. If you don’t monitor, someone else could slip in—and you might miss the window to stop them.
Building A Trademark Strategy That Actually Works
- Don’t skip the name search
Before getting too attached to a brand name, take the time to check if it’s already in use. That means searching the Indian Trademark Registry — not just for exact matches but for anything that sounds close. Also check domain names and social media handles while you’re at it. You’d be surprised how often a “perfect” name is already taken.
- File early, even if you haven’t launched yet
A lot of startups wait until they’ve gone public with their product or branding to file for a trademark. But honestly, that’s cutting it close. The law in India lets you file based on your intention to use the mark, so there’s no reason to hold off. Filing early gives you priority — and that could make all the difference if someone else jumps in later with a similar name.
- Cover more than just your name
Your brand isn’t just the name you picked. It’s also the logo you designed, the tagline you use in your pitch decks, and even the different ways people might write or say your brand—like abbreviations, stylized fonts, or variations. If you only register the name and skip the rest, you’re leaving big pieces of your identity wide open. And if you’re thinking about growing into other sectors or even outside India, it makes sense to look at extra trademark classes or file in other countries before someone else does.
- Keep watch after filing
Getting a trademark doesn’t mean you’re done. You still have to keep an eye out. If someone applies for something too similar, and you don’t notice in time, they might get through. Set reminders to check the Trademark Journal or ask your lawyer to flag anything suspicious. It’s easier to stop a problem early than fix it later.
- Use ™ and ® properly
While your application is pending, put the ™ symbol next to your brand. It tells people you’re claiming it. Once it’s officially registered, switch to the ® symbol. It’s a quiet signal that your rights are formal — and that you’re prepared to defend them if it comes to that.
What Can Go Wrong If You Ignore Trademarks
- You might end up rebranding
Changing your name after you’ve already built a presence is costly—not just financially, but in terms of recognition. You lose momentum, and sometimes, your audience with it.
- Your reputation could take a hit
If customers get confused by a similar name or logo in the market, they may lose trust in your brand. And rebuilding that trust is a slow, uphill process.
- You could spend a lot on legal defense
You could pour months into building your brand, only to find out later that someone else owns the name. It’s the kind of mess that’s more common than most founders expect, and honestly, dealing with it drains time, money, and energy you probably don’t have to spare.
- Investors will take notice—and not in a good way
Intellectual property disputes raise red flags during funding rounds and exit negotiations. Venture capital firms and acquirers don’t like uncertainty. If your trademarks are in a grey area, your valuation could suffer.
In many exit deals, IP due diligence becomes a make-or-break factor. If your trademark position is weak or contested, it can drag down your entire deal.
How Startups Can Enforce Their Trademarks in India
The good news? India gives you legal tools to defend your brand. You’re not left to fight alone.
- Civil options
If someone’s misusing your brand, you can go to court to get them to stop by filing for an injunction. You might also be able to claim damages or even get a judge to order that the fake goods be taken off the shelves. These kinds of legal steps fall under Section 135 of the Trade Marks Act.[v]
- Criminal penalties
Falsifying or using someone else’s trademark is a criminal offense under Sections 103 and 104[vi]. If proven, it can lead to jail time and fines—not just a slap on the wrist.
- Be prepared
The truth is, most founders don’t really pay attention to trademarks until something breaks—and by that point, it usually costs more to fix than it would’ve to plan ahead.
Where Startups Stand on Ip Awareness
With programs like Startup India and the SIPP scheme (that’s the government’s initiative for helping startups protect their intellectual property), there are now real incentives to act early. These include lower fees and faster processing.[vii]
Most founders don’t give much thought to trademarks until something actually goes wrong. And when that happens, they usually find out it’s already too late to avoid the damage. Fixing the issue costs more—money, time, and sometimes your brand’s identity. Taking IP seriously from the start is one of those things that doesn’t feel urgent, until it suddenly is.
Conclusion
Startups are built to move quickly. But trademark law doesn’t move at your pace—it takes time, and it follows rules. And that mismatch can hurt you if you’re not paying attention.
In a market as big and fast-moving as India’s, skipping trademark strategy isn’t just risky—it’s reckless. A strong brand is more than a logo. It’s legal protection, customer trust, and future value all rolled into one.
By putting a trademark plan in place early on, startups aren’t just protecting their name. They’re protecting everything that name stands for.
Author:–Krutha Janani M, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing.
[i] Trade Marks Act, No. 47 of 1999, § 18, India Code (1999)
[ii] Resilient Innovations Pvt. Ltd., v. PhonePe Pvt. Ltd. 2023:DHC:DB:3426 (Del. HC).
[iii] Id. § 9.
[iv] Ministry of Commerce & Industry, Office of the Controller General of Patents, Designs & Trademarks, Nice Classification (NCL) 11th Edition
[v] Trade Marks Act, No. 47 of 1999, § 135, India Code (1999).
[vi] Id. §§ 103–104
[vii] Department for Promotion of Industry and Internal Trade (DPIIT), Start-Up Intellectual Property Protection (SIPP) Scheme, https://www.startupindia.gov.in
