The Cost of a Real Rebrand
If your previous brand name or logo infringed on someone else's rights, you will first have to go through litigation, then sell off or destroy remaining stock, then rebrand with new packaging and branding that creates a distinct enough commercial impression for you to keep operating.
The litigation and stock questions can quickly add up to tens or even hundreds of thousands. But you would think the rebrand itself isn't that big of a deal. How much would that really cost you?
According to Sortlist's study of over 1,000 brands, the median price for a substantial rebrand is $24,500, ranging from $5,000 to $10,000 on the lower end and $50,000 to $60,000 on the higher end. This mostly reflects SMEs, as the price for larger rebrands is closer to $250,000 to $500,000. Either way, these price tags are astronomical and out of reach for most companies. So what is the cheaper alternative?
How to Avoid a Forced Rebrand
If you don't want to get pushed out of your space by a competitor with a confusingly similar name, the best way to defend yourself is to register your own trademark. Trademarks give you the exclusive commercial right to use a brand name or logo within a given jurisdiction and for specified goods and services.
And the price? Substantially lower than anything near a rebrand. In the US, for example, registration in one class of goods and services can get as low as $590, including legal fees and an initial clearance search.
If It's That Easy, Why Doesn't Everyone Get a Trademark?
The simplified answer is that trademarks are still viewed as costly, slow, and annoying. For the most part, they can be all three. If you are faced with oppositions or office actions, the costs can add up to a couple of thousand dollars per application, and most IP offices take months, even years, to respond and register your mark.
But the more nuanced truth is that most small-to-medium-sized businesses skip the long-term prevention step because of the initial cost. Comparing a $50,000 rebrand to a $590 trademark seems jarring, but most owners believe they will never get into such a costly dispute. At any given moment, the $590 spend seems unnecessary, so they delay it. They wait until a dispute becomes impossible to avoid, then regret the delay.
What the Trademark Registration Process Actually Looks Like
Business owners are often surprised to learn they don't need any special documentation, paperwork, or licenses to obtain a trademark. Though complications can arise, most applicants go through the following process:
Submit your brand name or logo for a paid or free clearance check.
If there are no conflicts and the name is clear, fill out and file your trademark application.
An examining attorney either approves it or issues an office action that temporarily prevents registration.
Once you are approved, or once you successfully respond to the office action, your trademark is published for opposition.
During the publication period, previous trademark owners can oppose your mark if they have grounds to. Only about 5% of new applications are actually opposed.
If the period concludes with no oppositions, the IP office issues a certificate of registration.
It is that simple, and it gets even simpler when a legal representative files your mark.
When Does It Not Make Sense to Trademark?
It doesn't happen often, but there are some situations where trademarking doesn't make sense. Here are a few examples, in order of how common they are:
If an identical or confusingly similar mark is already registered, you will have to change your name before registering.
If your name is generic or fully describes what your business does. These names generally do not get registered unless you can prove the name is popular enough to be associated with your brand rather than the industry itself.
If you are unsure about a name and are likely to change it soon.
If you don't have any foreseeable plans to commercially use the mark. An idea is not a trademark, which is especially relevant in the US, where commercial use is a requirement.
Other than these, trademarking is almost always a good idea.
FAQs: Rebranding vs. Trademarking
1. Is a trademark really cheaper than a rebrand?
In almost every case, yes. A single-class US trademark registration can start around $590, while the median substantial rebrand costs $24,500 according to Sortlist's analysis of over 1,000 brands. Even accounting for possible office actions or oppositions, the cost of registering and defending a trademark is a fraction of what a forced rebrand costs once litigation, stock disposal, and new branding are factored in.
2. Does a trademark completely prevent a forced rebrand?
Not automatically, but it is the strongest protection available. A registered trademark gives you the exclusive right to use your mark for your goods and services in your jurisdiction, which means a later business with a confusingly similar name is the one who has to change, not you. Without a registration, you have far less standing to defend the name you have built.
3. How long does trademark registration take?
It varies by jurisdiction and by whether any complications arise. A straightforward US application with no office actions or oppositions generally registers within roughly a year. Applications that receive an office action or an opposition take longer. The delay is one reason to file early, before a dispute forces the issue on someone else's timeline.
