Have you heard the news about the famous Korean dessert franchise Sulbing finally invalidating a counterfeit trademark in China after seven years?
When Sulbing entered the Chinese market, it faced a flood of counterfeit brands, leading the company to refund the contract fees of its Chinese franchise partners and ultimately withdraw from the market. Recently, however, there was good news: the counterfeit trademark Sulbing Yuan Su, which had been registered by an imitation brand, was finally invalidated. This fake brand had copied not only Sulbing’s logo but also its interior design, menu, and even vibrating pager designs.
Such behavior by Chinese counterfeiters is already infamous, so the news wasn’t particularly shocking. What made the Sulbing case a major issue were two key factors:
- No Trademark Protection Before Market Entry:
Sulbing, despite being a successful franchise, launched its business in China without securing trademark rights, which are the minimum protective measures. While they likely faced various challenges, it would have been better if they had secured their rights or developed other strategies before starting their business operations in China. - A Lawsuit Filed by Their Partner:
Sulbing’s Chinese partner filed a lawsuit against the company due to unresolved trademark issues. The partner struggled with the rampant presence of counterfeiters and eventually gave up entirely.
Now that the unauthorized trademark registration has been invalidated, Sulbing can finally restart its business operations in China.
Registering a company’s core brand as a trademark is this critical—it can make or break the entire business. Unlike other forms of intellectual property, trademarks do not protect creativity but rather the selection and registration of identifying marks. For this reason, trademarks are often perceived as less valuable than patents or copyrights. This perception is especially common in technology-driven companies.
In contrast, the lifespan of patents and designs is relatively short. Although patents are legally valid for 20 years, the technological relevance often diminishes within five years. Design trends change even more rapidly, making their lifespan even shorter.
Brands, however, are different. The brand, represented by the trademark, is the most visible expression of a company’s identity. The more a trademark is used, the more its value and reputation increase.
Once a trademark achieves wide recognition, its lifespan can be almost eternal. It’s not uncommon to see brands from bankrupt companies still remembered by consumers. Trademarks are indeed one of the most efficient and powerful tools for permanently protecting a company’s value.Trademarks are, in fact, one of the most efficient and powerful tools for permanently safeguarding a company’s value.
Securing Exclusive Rights: The Power to Prohibit Use by Others
The primary benefit of trademark registration is securing legal rights to prevent others from imitating your brand. These rights extend not only to identical trademarks but also to similar ones. Additionally, these rights cover not only identical goods but also similar goods.
The key criterion for determining similarity is the likelihood of consumer confusion, which is broader than one might expect.
To assess likelihood of confusion, three factors are considered:
1. Sound (pronunciation),
2. Concept (meaning), and
3. Appearance (visual form).
If any one of these elements is similar, the trademarks may be deemed confusingly similar.
When evaluating product similarity, factors such as the producer, target consumers, product features, and effectiveness are analyzed to determine if there is market overlap or relatedness. In today’s market, where collaborations and new products frequently emerge, the scope of what constitutes a similar product continues to expand.
Compared to patents or designs—both of which are relatively easy to bypass—trademark rights are remarkably broad. This is because trademark law aims not to protect creative works but to safeguard business trust and fair trade practices through the selection and use of trademarks.
Preventing Third-Party Registrations
Trademark registration also prevents third parties from registering identical or similar trademarks for identical or similar goods. The patent office automatically rejects conflicting trademark applications, eliminating the need for further action once your trademark is registered. Registration alone ensures that similar trademarks are filtered out.
Ensuring Usage (Indirect Benefit)
For many companies that dislike legal disputes, the most important benefit of trademark registration is the perceived security that it provides. Once registered, a trademark creates the impression that the company is unlikely to face lawsuits over its usage.
Although this belief is not entirely accurate, it is practically valid about 98% of the time. Unless a registered trademark is a direct imitation or has a significant impact on another business, it is unlikely to face legal challenges. Most ordinary companies prefer to avoid lawsuits and disputes altogether.
However, trademark registration does not provide absolute protection for usage. Trademark registration and actual use are separate matters. Even with a registered trademark, there are rare cases where its use may infringe on pre-existing rights held by another party.
A Trademark Is Insurance, a Weapon, and an Asset
Trademark rights are a powerful weapon against imitation. While they may not immediately generate profits for a business, they act as insurance—ready to be deployed when necessary. Trademarks protect the core of a brand, and their value grows the more they are used, ultimately becoming a permanent asset for the company.