In an established company, they do account for the properties, equipments, cash and receivables they have. Notice that they are all tangible and the benefits the stakeholder could derive can also be touched and seen.
However, assets which are intangible should also be given importance. For example is the trademark. As defined in the accounting world, trademark is a symbol, sign, slogan or name used to mark a product to distinguish it from other products. This is market-related intangible asset. Your company or your product gains popularity and acceptance with the help of trademark. Also, the characteristics and specifications of your product are protected by having trademark.
In China, lots of products have been introduced. Lots of names have been used and lots of product definitions have been created. In applying for the registration of trademark, the following documents should be prepared:
• A copy of current Business Registration Certificate of the applicant, if the applicant is a corporation.
• A copy of Identification documents of the applicant, if the applicant is an individual person.
• List of goods or services.
• Clear image of the trademark.
In processing you application to obtain trademark, five steps would be performed. First is trademark search. Your proposed trademark would be tested if it is already existing or not. Next is the initial application. Third is substantive examination. Further tests would be done to assure that your trademark is unique from other existing names. Next is publication, if the proposed trademark has proven legality, non-functionality, and distinctiveness and conflicts no prior right. Last is the issuance of certificate.
Trademark is necessary, thus, a company must have it registered. Here are some other benefits your company could have if the trademark has been properly registered:
• Your product can be protected. It will be detected if other company are imitating your product and sells it at lower prices. The authority will inform you of such fraudulent act, thus, giving you more time to do the necessary steps to save your company.
• Gaining popularity. Once you have an established trademark, customers will become conversant with the characteristics your product has. Trademark is not an expense. It is an investment that can give you more and more benefits as time goes by.
Trademark is an asset. May it be intangible or not, it can still give you economic benefits in the future time. Registration is just a single investment yet can help you be exposed to lesser risks and more rewards.