What is intellectual property (IP)?
Intellectual property refers to legal rights that protect your business’s intangible assets. The three most common types are:
Trademarks – Protect your brand name, logo, and slogans, making sure no one else can use them.
Patents – Protect inventions and technological innovations, stopping others from copying them.
Designs – Protect the visual appearance of your products, such as packaging or unique shapes.
Out of these three, trademarks are especially important for small businesses because they help customers recognize and trust your brand. By registering a trademark, you, as a business owner, can prevent others from using similar names or logos, reducing the risk of customer confusion and brand damage.
How intellectual property benefits businesses
According to the research conducted by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO), businesses with registered trademarks and other IP rights consistently perform better in terms of revenue. Here are some key findings:
Companies that own IPRs generate 23.8% higher revenue per employee than those without registered rights.
Small businesses with registered IPRs report 44% higher revenue per employee compared to non-IPR-owning SMEs.
Firms holding IPRs offer 22% higher wages on average than their counterparts without IP protections.
Businesses with registered trademarks enjoy stronger brand positioning, reducing the risk of infringement and consumer confusion.
Despite these benefits, the adoption of IPRs among SMEs remains disproportionately low. Research indicates that while approximately 50% of large corporations own registered IPRs, only 10% of SMEs actively protect their intellectual assets.
Why some businesses avoid trademark registration
There are a few reasons why some businesses choose to avoid registering their trademarks, and it often comes down to a mix of lack of information and misunderstandings.
Some business owners believe that just using a brand name or logo without formally registering it is enough protection. This leads to the assumption that trademarking is optional, even though unregistered trademarks don't offer the same level of legal protection and can be easily copied by others.
Another reason is that the trademark registration process can seem complicated and overwhelming. There’s paperwork to fill out, a need to do research, and requirements to prove that the trademark is unique. For someone who isn’t familiar with intellectual property law, all of this can feel like a lot to take on.
Services like Trama make it easier by guiding you through the steps and offering a free lawyer's check to ensure everything is in order. This can save a lot of time and confusion for businesses that would rather avoid the effort and potential risks of filing a trademark application incorrectly on their own.
The bottom line: Trademarks are an investment, not an expense
Many businesses don’t realize the power of trademarks until it’s too late. Whether you run a small startup or a growing company, securing your intellectual property can mean the difference between struggling to stand out and building a trusted, recognizable brand.
A trademark is not just a legal tool—it’s a competitive advantage that increases your business value, strengthens customer trust, and opens doors to new opportunities. By investing in intellectual property now, you set your business up for long-term success.
If you’re unsure where to start, consulting a trademark lawyer can help you navigate the process and ensure your brand is fully protected. Don’t wait until someone else takes your name—protect your business today!
FAQs - Should SMEs Consider IP Protection?
1. What types of intellectual property (IP) are most important for small businesses?
The three most common types of IP are trademarks, patents, and designs, but for small businesses, trademarks are typically the most critical. A registered trademark protects your brand name, logo, or slogan—helping customers recognize and trust your business. It also gives you legal rights to stop others from using similar branding, reducing the risk of confusion and brand damage. This makes trademarks a key investment in building a strong and protected brand identity.
2. How do trademarks and other IP rights benefit a company financially?
Businesses that own intellectual property rights (IPRs) significantly outperform those that don’t. According to research from the EPO and EUIPO, companies with registered IPRs generate 23.8% more revenue per employee, and SMEs with trademarks report 44% higher revenue. These businesses also tend to offer better wages and enjoy stronger brand positioning. Protecting your brand through trademark registration isn’t just about avoiding legal issues—it directly supports growth, competitiveness, and employee value.
3. Why do some small businesses avoid registering their trademarks—and should they?
Many small businesses skip trademark registration due to misunderstandings or feeling overwhelmed by the process. Some think simply using a name gives enough protection, but unregistered trademarks offer limited legal defense and are easier for others to copy. Others find the paperwork and legal terms too complex. That’s why services like Trama exist—to simplify the process with expert support, including a free lawyer’s check. Registering a trademark may seem like a hassle at first, but it’s a smart investment in your brand’s long-term security and value.
