What is a Trademark? What are its functions?

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What is a Trademark? What are its functions?

SOLUTION:

Trademark:

• A consumer is duped if he buys a commodity presuming it to have originated from a certain identified source when actually it is not, and later he finds the commodity substandard.
• In the process, the reputation of trader suffers.
• The interests of both the consumer and the trader can be saved if some definite symbol which marks out the origin of goods from a definite trade source is attached with the goods emanating from such source.
• Such a symbol is called a trademark.

Functions Of Trademark:

A trade mark serves the purpose of identifying the source of origin of goods. Trademark performs the following four functions:

• It identifies the product and its origin. For example, the trade mark ‘Brooke Bond’ identifies tea originating from the Company manufacturing tea and marketing it under that mark.
• It guarantees its quality. The quality of tea sold in the packs marked Brooke Bond Tea would be similar but different from tea labelled with mark Taj Mahal.
• It advertises the product. The trade mark represents the product. The trade mark ‘Sony’ is associated with electronic items. The trade mark SONY rings bell of particular quality of particular class of goods. It thus advertise the product while distinguishing it from products of Sony’s competitors.
• It creates an image of the product in the minds of the public, particularly comes or the prospective consumers of such goods. The mark ‘M’ which stands for the food items originating from the American fast food chain McDonalds creates an image and reputation for food items offered by it for sale in the market.