With multiple similar goods offered by multiple competitors in the market, differentiation becomes pivotal. A trademark is a symbol that distinguishes between the goods of the company with that of the competitor. Apart from differentiation, a trademark can also serve as a means to offer product authentication and a seal of trust and quality.  The main objective of using a trademark is to prevent competitors from introducing identical products in the market, ultimately protecting the customer from using low-quality similar products.

As per the Indian Trademark Act, a trademark can be defined as a mark having graphical features that can be used to distinguish one good or service from the other. It can have various elements, such as a shape, colour, label name, packaging, text, numeral, brand, or a combination of these elements.

Even though companies, brands or creators are not obligated to trademark their products, it is suggested they do so to prevent infringement and offer their products and customers global protection. Trademark is also advisable, given the rising cases of infringement.

Trademarks offer identification and authenticity to the product or services. Registration for a trademark may not be limited to encompassing colours, traditional forms, audible, three-dimensional or olfactory signs. It is a valuable asset that businesses use to protect their product or services from infringement.

It can also serve as a marketing tool offering authenticity to the product, generating trust and persuading customers to choose and invest in it. The mark can be displayed on goods, tags, or labels.  The economic value, derived from successful marketing campaigns and brand names, creates goodwill and market power. This creates barriers for new entrants in the market and limits competition in the respective industry.