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Making your brand work for you

However, as business grows and the product takes off, the packaging and branding itself will become crucial, enabling customers to instantly recognize your products and reinforce your key product messages, be it quality, value for money, taste or well being.
 
However, as business grows and the product takes off, the packaging and branding itself will become crucial, enabling customers to instantly recognize your products and reinforce your key product messages, be it quality, value for money, taste or well being.

A food or drink product’s branding is likely to be displayed on its packaging, in addition to general advertising campaigns, whether it is the name of the range or product, logo or color scheme.

If the design of the packaging is unique, that too will constitute part of your branding. This could be the shape and design of the packaging, or if it contains an unusual or functional characteristic – for example, that it can be resealed, is easy to store or can be reused.

A strong brand will guarantee sales by loyal customers, whatever their motives for selecting the product. Consequently, a good brand can significantly add to a product’s value, which will no doubt influence a potential investor’s investment or buyer’s purchase price.

The more valuable the branding is to a business the more important it will be to investors and purchasers that the business owns the branding.

Equally, if you want to be able to defend your product against infringers who look to benefit from the goodwill of your merchandise, it is much easier to do if you own the branding.

Various types of intellectual property will exist in your branding and packaging. Copyright will exist in logos or images used. Trademark protection could be given over logos, slogans or text. If the packaging has an unusual, aesthetic feature, such as patterns or shape, it may attract registered designs.

Generally speaking, the person or company creating your brand will own each of these types of intellectual property. Therefore if you, entirely on your own, create your branding and packaging, you will own the intellectual property.

However, if someone else, such as a friend or a design agency, creates your packaging or your branding, they will own the intellectual property unless there are contractual provisions stating otherwise.

This is the key point. Firstly, you need to have the intellectual property, created by that other person or company, transferred to you in writing.

Secondly, the document must use what are known as “operative words” which actually transfer the property to you. It is not enough to merely state you agree you should own everything; there must be words that clearly transfer the property to you.

It is best practice to have this done at the time the rights are created, to make sure the other person cannot do anything with the rights. The worst case scenario is they transfer them on to someone else.

Do not panic though. Provided it was everyone’s intention at the time the rights were created that you were to own them, you can record the transfer at a later date.

Either way, regardless of the money, time and effort you have spent in developing your product's branding, it is beneficial to know what rights you have and to ensure your business owns them.

Alison Bryce is a partner in the IP & Technology department at Maclay Murray & Spens.




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