Once your Trademark is registered, you will have exclusive rights and no one else will be able to use the same mark. Trademark registration is one of the most powerful tools how companies are able to protect themselves from unfair competition and avoid that someone else will use their brand for business purposes. It is proven to be very useful to Fintech startups, because it is easier (and cheaper) to register your Trademark than to go to court and prove that someone has used your brand name if you haven’t registered Trademark. So far there are already several EU Members States (Estonia, Germany, Spain, etc.) who are checking EUIPO existing trademarks before registering a company. This means that if you have registered Trademark with your company name, no one else will be able to register a company with the same name, unless you will grant them permission. It is expected that with development of technologies, more EU Member States will start to check existing TM’s before approving company registration.
Trademark Registration significantly increases value of the company. This aspect is extremely important to companies who seek to receive funding from investors and they need to determine pre-seed value of the company. One of the key aspects which goes in to pre-money valuation is Protection of Intellectual Property. Before investors will invest in your business, they have to make sure that their investments will be protected and one of the best ways how to protect your brand is by Trademark Registration. It is proven that startups with registered Trademarks are valued higher than the ones who haven’t registered any Trademarks.
With existing trademark which covers all EU, company will be able to develop business under the same name in all EU countries. This is very useful for startups who intend to start small and then scale their business. In startup environment where investor pitches are usually publicly available because they are streamed online, it is possible that someone will register a company with the same name in other Member State and later on will use it against you. This will cause problems for your business to expand to new market and it is possible that you will have to do it under different business name.