Trademarks are fundamental components of the legal and economic framework of modern business. They not only distinguish a company’s goods and services from those of competitors but also build consumer trust, ensure market identity, and represent significant intangible assets.
Proper registration, effective management, and timely protection of trademarks are crucial for the long-term success of any organization, regardless of its size or sector.
Definition and Functions of a Trademark
A trademark is a sign that serves to distinguish the goods or services of one enterprise from those of others. According to Article 4 of Regulation (EU) 2017/1001 on the European Union trade mark and Article 9 of the Bulgarian Law on Marks and Geographical Indications (LMGI), the sign must be capable of being represented in a manner that allows for clear and precise determination of the subject of legal protection.
Various types of trademarks exist, depending on their form and the way consumers perceive them. These include word marks comprising words, letters, or numbers; figurative marks containing graphic images or stylized fonts; three-dimensional marks related to the shape of products or their packaging; non-traditional marks such as color combinations, sound signals, multimedia, or positional signs.
The primary functions of a trademark include identification (enabling consumers to recognize the origin of goods or services), guarantee (creating an expectation of quality and consistency), marketing (facilitating brand image and loyalty), economic (serving as a valuable asset that can be licensed, transferred, or used as collateral).
Distinction Between Trademark and Trade Name
In practice, there is often confusion between the terms “trademark” and “trade name,” although they have different legal natures and operate in distinct areas of the legal system.
A trade name is the designation under which a legal entity or sole proprietor conducts business and is registered in the Commercial Register, in accordance with the requirements of the Commercial Act. The trade name serves to individualize the trader as a legal subject and does not, by itself, confer rights over goods or services.
A trademark, on the other hand, is an object of industrial property and serves to distinguish the goods or services offered by a person in the market. Registration of a trademark grants exclusive rights to use the sign concerning specific classes of goods or services and protection against third parties who might use an identical or similar sign.
Understanding “Registered Trademark”
In Bulgarian practice, the expression “zapezena marka” (literally: “protected mark”) is commonly used as a synonym for a registered trademark. While this phrase is widely accepted in everyday language, it has no formal standing in Bulgarian or EU legislation. Legally, the concept that carries enforceable rights is the registered trademark, governed by the Bulgarian Law on Marks and Geographical Indications and Regulation (EU) 2017/1001 on the European Union trade mark.
A registered trademark grants its holder the exclusive right to use the sign concerning specific goods or services and to prohibit unauthorized use by third parties. For a sign to be effectively protected as a “registered trademark,” its registration must be completed and entered into the relevant register, with legal protection commencing from the date of registration.
Trademark Registration in Bulgaria and the European Union
To ensure legal protection, a trademark must be registered with the competent authority. Depending on the scope of business activity, registration can be carried out at the national level – before the Patent Office of the Republic of Bulgaria – or at the European level – through the European Union Intellectual Property Office (EUIPO).
A registered trademark grants its holder exclusive rights to use the sign concerning specific goods or services. This includes the ability to oppose unauthorized use by third parties and to build a long-term market identity. National registration provides protection only within Bulgaria, while a European Union trademark is valid in all EU member states.
The registration procedure involves submitting an application, examination by the relevant authority, and publication, with possible opposition from holders of earlier rights. Given the potential for procedural and substantive obstacles, trademark registration requires careful legal analysis and a strategic approach from the planning stage. In the absence of opposition and additional complications, trademark registration in Bulgaria typically takes between 12 and 18 months, while EU trademark registration takes between 4 and 6 months.
Professional legal support in this process is essential, especially when developing a cross-border brand strategy or assessing risks related to registration refusal. An approach tailored to the business’s specifics ensures higher legal certainty and effective protection.
Grounds for Refusal of Registration
Not every trademark application is eligible for registration. Legislation provides specific grounds for refusal aimed at ensuring legality, market clarity, and protection of prior rights.
Two main types of refusals are distinguished: absolute and relative. Absolute grounds are applied ex officio by the registering authority and include, for example, lack of distinctiveness, descriptiveness concerning the goods or services, conflict with public order, or use of designations protected by other rights (e.g., geographical indications or state symbols).
Relative grounds for refusal arise when there is an earlier trademark identical or similar to the new application and are applied at the initiative of third parties – holders of such rights. Such conflicts often lead to opposition during the registration procedure or disputes after its completion.
Therefore, a preliminary legal check for conflicts with already registered trademarks is critically important. Analyzing potential obstacles to registration allows for avoiding refusals, prolongation of the procedure, and unnecessary costs for the business.
Rights Conferred by Registration
Registration of a trademark grants its holder the exclusive right to use the sign to designate specific goods or services within the chosen territorial scope – national or European. This right includes the ability to prohibit third parties from using identical or similar signs in commercial activities when there is a likelihood of confusion among consumers.
The protection provided through registration has both preventive and repressive functions – on one hand, deterring unauthorized use, and on the other, providing legal grounds for taking action against infringers. This includes claims for cessation of infringement, compensation for damages, destruction of infringing products, and other protective measures provided in national and European legislation.
It is important to note that trademark rights are not unlimited – for example, in cases of exhaustion of rights within the EU, the holder cannot oppose further commercialization of the goods.
A registered trademark is also a transferable asset that can be subject to licensing, pledge, or capital contribution. This makes it not only a protection tool but also a strategic element of the enterprise’s commercial value.
Infringement of Trademark Rights and Legal Remedies
Trademark infringement occurs when a third party uses, without the holder’s consent, an identical or similar sign for goods or services that are identical or similar to those for which the trademark is registered, creating a likelihood of confusion among consumers. Infringement can manifest through product labeling, advertising materials, commercial packaging, online content, or even domain name registration.
The trademark holder has the right to seek legal protection. Primary legal remedies include claims for cessation of infringement, compensation for incurred damages, and measures for the destruction of goods or materials related to the infringement. In certain cases, administrative and border control mechanisms can also be employed, especially concerning import violations or online commerce.
Managing Trademarks as Business Assets
A trademark is not merely a legal protection tool but also an economic asset that can be managed, traded, and strategically utilized. Similar to other forms of intellectual property, it holds value that can be included in the company’s balance sheet, pledged as collateral, or used in commercial negotiations.
The right to a registered trademark can be transferred through an assignment agreement, which must be recorded in the relevant register to have legal effect against third parties. Additionally, the trademark can be licensed – the holder grants another party the right to use it for compensation, under conditions that may be limited by time, territory, or scope of activity.
Challenges for Trademarks in the Digital Era
The rise of digital technologies, social media, and e-commerce has introduced new dimensions to the challenges faced by trademark holders. The online environment facilitates unauthorized use of trademarks in domain names, advertising campaigns, meta tags, e-commerce platforms, and social media channels.
Moreover, the emergence of new forms of digital content – such as NFTs, virtual goods, and metaverse environments – raises complex questions about the scope of protection and applicability of existing registered trademarks in a fully digital context.
The regulatory response to these developments is still evolving. With the entry into force of the Digital Services Act (DSA) and the enhanced responsibilities imposed on online platforms, new mechanisms are being introduced to report and remove infringements of trademark rights on the internet.For trademark holders, this underscores the need to update their protection strategies – including regular monitoring of online use, proactive enforcement against counterfeiting, and the adaptation of legal frameworks to align with emerging technological trends.