What Is a Trademark, Why Does a Company Need It, and How Is It Registered?

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What is a trademark?

A trademark is a sign used to distinguish the goods or services of one business from those of another. It is one of the protected intellectual property rights. In Azerbaijan, trademark registration is carried out in accordance with the requirements of the Law on Trademarks and Geographical Indications. Registration provides legal protection for the trademark. According to Article 1 of this law, a trademark is a sign, or a combination of signs, that can be represented graphically and distinguishes the goods or services of one entrepreneur from those of another.

The exclusive right to a registered trademark is valid for 10 years. At the request of the trademark owner and upon payment of the relevant fee, this period can be extended for another 10 years each time.

What can be registered as a trademark?

The types of signs that can be registered are defined in Article 4 of the law. These include:

• words, personal names, letters and numbers;
• graphic elements;
• the shape of goods and their packaging;
• colours and combinations of the elements listed above.

The grounds for refusal of registration are explained in Articles 5 and 6 of the law.

What are the benefits of trademark registration?

1. One of the main benefits of registration is the protection of the investment made in a brand. A business may spend money on advertising, packaging and promotion to make its brand recognisable. Over time, the brand can become valuable. If it is not registered as a trademark, another person may try to register it in their own name and benefit from it. A recognised brand can also create additional value and income for its owner.
2. Registration gives the owner exclusive rights and legal protection. Only the trademark owner can authorise others to use it, for example through a franchise or licence agreement. The owner can also take legal action and claim compensation if these exclusive rights are violated.
3. A registered trademark can become an intangible asset of the company and may increase the value of the business. As an intangible asset, the right to use the trademark can also be granted to another party under a licence agreement.
4. A registered trademark can help customers identify the source of goods or services and may contribute to trust in the brand. It can also help distinguish genuine products from counterfeit ones.

Where should you apply for registration?

Trademark registration is carried out by the Intellectual Property Agency of the Republic of Azerbaijan based on an application submitted by the applicant.

The documents can be submitted to the Agency:

• directly; or
• through a patent attorney.

Representatives of individuals living abroad and foreign legal entities must handle trademark registration and related legal procedures through a patent attorney registered with the Intellectual Property Agency.

Applications can also be submitted through the PƏNAH online system.

What documents are required for registration?

In Azerbaijan, a trademark application consists of an application form and the required supporting documents. A separate application must be prepared for each trademark. The filing and examination of trademark applications is carried out according to the rules approved by the Cabinet of Ministers of the Republic of Azerbaijan.

The application must include:

• information about the applicant or patent attorney, including name, address and signature;
• the representation of the trademark, such as its image or three-dimensional form;
• a description of the mark in free form;
• a list of goods and services classified according to the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks;
• the colour or combination of colours, if applicable.

The following documents may also need to be attached to the trademark application:

• a document confirming the authority of the patent attorney or other representative, such as a power of attorney;
• for a collective mark, its regulations, the name of the entity authorised to register it, the list of persons entitled to use the mark, the goods or services covered by it, and their common quality or other characteristics;
• a document confirming priority, where required;
• a document confirming exhibition priority, where applicable;
• proof of payment of the required trademark registration fee.

The application must be submitted in Azerbaijani. Other information may be provided in Azerbaijani or another language. The application period starts from the date the documents are filed. If any information is submitted in another language, an Azerbaijani translation must be provided within two months. Otherwise, the application may be considered not to have been filed.

What happens after the trademark application is submitted?

If the application submitted to the Agency meets the legal requirements, it is registered and goes through a two-stage examination process. The preliminary examination is the first stage and is completed within one month. At this stage, the Agency checks:

• the content of the application;
• whether all required documents have been submitted;
• whether the documents meet the relevant requirements.

Based on the results of the preliminary examination, the application is either accepted for further review or rejected.

The applicant is informed of the decision. If necessary, corrections can be made and the application can be submitted for examination again.

The substantive examination of the proposed trademark is the second stage. It is carried out within six months after the preliminary examination is completed.

The examination may be completed on an accelerated basis within one month if the relevant service fee is paid. The current amount stated for this service is AZN 120.

During the substantive examination, the Agency checks whether the proposed trademark meets the requirements of the legislation and determines its priority.

If a positive decision is made, the applicant must pay the state fee within four months. The current amount stated for this fee is AZN 45. After payment, the trademark is registered, the relevant information is published and a certificate is issued.

If the application is rejected, the decision is sent to the applicant within 10 days.

The applicant may make the necessary corrections in accordance with the law or appeal the decision.

As can be seen, trademark registration, examination and protection may involve a number of state duties and fees payable to the Intellectual Property Agency. Failure to pay these fees correctly and on time may lead to delays and, in some cases, problems with registration.

If you want to save time and simplify the process, you can use our trademark registration service. The specialists at Accounting.Az LLC can help you handle the registration process more efficiently

Can a registered trademark be licensed to another person?

The owner of a trademark registered with the Intellectual Property Agency can grant another person the right to use it. This is done through a licence agreement that must be registered with the Agency. Information about the agreement is also published in the Agency’s official Industrial Property bulletin. For the licence agreement to become effective, the relevant service fee must also be paid. The current amount stated for this service is AZN 120.

Trademark rights can also be transferred to another person under an agreement. The transfer may cover all or part of the goods and services for which the trademark is registered. The current state fee stated for registering such an agreement with the Agency is AZN 60.

Trademark rights may also be transferred while the registration application is still being processed. The current state fee stated for transferring rights under an application is AZN 35 for one trademark.