Everything you need to know about trade marks for your business
Intellectual property. It’s a hot topic.
Why?
Because, in the globalised and ultra-connected world we live in, the intellectual property (IP) of individuals and businesses is increasingly at risk.
It’s not just famous cases like Ugg Boots that are making the news. Trade mark, patent and copyright infringements in general are on the rise – both from the work of unscrupulous individuals/organisations and through innocent breaches of IP.
In Australia, interest in protecting ideas through IP rights is increasing. In the latest figures available, trade mark applications grew by 14 per cent – the highest growth in a decade. Copyright and design applications also grew, indicating that innovation is alive and well in Australia.
To successfully commercialise this innovation, it needs to be protected by law.
What are you doing in your business to protect your IP and your ideas?
Trade marking your goods or services may be the best option for you. Here we look at the key questions to consider before deciding to apply for trade marks.
In considering these questions, you will become clearer on the reasons for applying for trade marks and the process you need to undertake to protect your business…
1. What is a trade mark?
A trade mark is used to uniquely identify a product or service and distinguish it from the offerings of competing traders.
This can take many forms including:
- A symbol or a number
- A letter, phrase, or word (in a particular font)
- A sound (such as a musical jingle)
- A shape, picture, or logo
- An aspect of product packaging
A trade mark is more than just a logo for your business (though a trade mark can be a logo). It covers you legally from someone trying to replicate the above aspects of your goods and services.
By registering a trade mark, you have the exclusive right to sell the product or service. You can also authorise others to use and sell it.
2. Does a trade mark last for life?
No. A trade mark must be renewed every 10 years to retain the exclusive rights to sell the product or service in question.
A trade mark registration can be renewed up to 12 months before the renewal date is due and no longer than six months after (in the latter case, extra fees will apply).
However, during this period you must demonstrate that you have actively used the trade mark – or the exclusive rights to use it may be rescinded by the Australian government.
3. Do all businesses need trade marks by law?
No. There is no requirement for a business to register any trade marks. It is NOT the same as a registered business name or registered company name, which all businesses must have.
However, if you want to protect the unique aspects of your business’s goods and services, you should consider trade marks.
For instance, just because you have a business name and have registered the domain name of a product, it does not prevent another business from using very similar details as you for a competing product or service.
4. What are the main benefits of trade marks?
While trade marks are different to brands, they can become an important part of your identity. For instance, what would Qantas be without the red and white kangaroo emblem on the tail of its planes?
This is a registered trade mark that is instantly recognised and helps promote Qantas services around the world.
Once you register a trade mark, other businesses must respect that you have exclusive rights to its use – or you have legal recourse to take action.
5. How do trade marks differ from copyrights, designs, and patents?
Intellectual property (IP) includes all inventions, literary and artistic works, designs, symbols, names, and images that are used to trade.
There are many ways of protecting this. Let’s look at the simple case of a pen:
A trade mark application may be for the name of the pen or the type of packaging used to distinguish it from other pens.
A patent for the pen might be for a particular type of pen with a new way to store its ink.
Industrial design protection may be sought for the pen’s new type of grip.
A copyright application is different again. This is sought to protect the IP of published or performed material. A copyright grants “the exclusive right to print, publish, perform, film, or record literary, artistic, or musical material or to authorize others to do so.”
6. What’s the difference between registered & unregistered trade marks?
You can use trade marks in one of two ways:
An unregistered trade mark – free to use but with restrictions; if someone has registered the same trade mark, they can take legal action against you. Using the ® trade mark symbol is an is an offence, though you can use TM to designate an unregistered trade mark.
A registered trade mark – you are legally allowed to use the ® symbol and nobody else is allowed to use the same trade mark; you can pursue legal action against them if they do so.
Note that there are some circumstances where even unregistered trade marks provide protection under law: for instance, if you have been using an unregistered trade mark for many years before someone else starts using it.
7. Are trade marks internationally binding?
Any trade mark registered in Australia covers only Australia. However, providing nobody has registered the trade mark that you want in another country, you can make an application for an international trademark.
This will protect you from overseas businesses using the names or other features of your goods and services.
Conversely, if you registered your trade mark overseas (but not in Australia) you are able to use ® to designate this, as long as you state the country of registration near to the symbol.
8. How do I apply for a trade mark in Australia?
To apply for an Australian trade mark, first decide if it’s actually a trade mark you need. They are commonly confused with design rights: mistakes with applications waste time and can be expensive as there are no refunds of fees.
If you are sure you need a trade mark, the next step is to start selecting the goods or services for which you intend to use your trade mark. Group them into one or more of the 45 categories available. You may need help doing this from a professional.
Before applying, ensure that the trade mark you want to apply for is available. Use the search facility on the official government site IP Australia to avoid wasting your time.
9. What happens after I submit my application?
Mistakes in applications for trade marks are common. Take the time to get it right before submitting yours. It will take around 3-4 months to assess.
If your application meets all of the requirements, it will be registered. You will receive written notification and it will appear in the Australian Official Journal of Trade Marks. It will also be visible in the search facility mentioned in the question 8.
10. What happened with Ugg Boots?
For Australians, there should be no greater warning about the dangers of not trade marking a product than the story of Ugg Boots.
As Aussies, we all love our Uggs. These sheepskin shoes and boots have been made for decades by a family-run business called Luda Production and we all know them as “Ugg Boots.”
However, the trade mark for Ugg Boots is held by the American sheepskin company Deckers Outdoor Corporation. They registered it in over 130 countries.
Consequently, the company challenged the use of the name by Luda Production and any other companies around the world using it – even though the name was used in Australia for decades before the trade mark application was lodged!
This led to ongoing court action - with major headaches (not to mention costs) that could have been avoided.
Let this be a lesson to all Australian businesses to register trade marks that protect the unique characteristics (including the names) of their goods and services – before another company does.
Don’t be the next Ugg Boots. Do what other Australian institutions have done and protected their names and products/services – from Vegemite to Qantas and the Wallabies!
Speak to your legal representative or accountant for more information on registering a trade mark.
Need help with your accounting?
If your business provides a car to an employee (or you’re the business owner/employee using it), there’s a good chance the Fringe Benefits Tax (FBT) rules apply. A car fringe benefit arises when a car owned or leased by an employer is made available for the private use of the business owner, an employee or their associate (such as a family member). “Private use” doesn’t just mean weekend road trips — it can include everyday commuting and even cases where the car is parked at an employee’s home, making it available for personal trips. Understanding how FBT is calculated and what records to keep is essential for compliance — and for avoiding paying more tax than necessary. What counts as a “car” for FBT purposes? The FBT law defines a car as a motor vehicle (except a motorcycle or similar) designed to carry less than one tonne and fewer than nine passengers. From 1 July 2022, some zero or low-emission vehicles are exempt from FBT, provided they meet certain criteria — for example, they must be first held and used after 1 July 2022 and must not have attracted Luxury Car Tax. Electric vehicle running costs, such as charging, are also exempt when the vehicle itself qualifies. Two main methods for calculating FBT on cars There are two ways to calculate the taxable value of a car fringe benefit. 1. Statutory formula method This method applies a flat 20% statutory rate to the base value of the car, adjusted for the number of days in the FBT year the car was available for private use. The formula is: (A × B × C ÷ D) − E A = Base value of the car (cost price plus GST and certain accessories, less registration, stamp duty and eligible reductions) B = Statutory fraction (generally 20%) C = Days available for private use D = Total days in FBT year (365) E = Employee contributions If the car has been owned for at least four full FBT years, the base value can be reduced by one-third. 2. Operating cost method This method calculates the taxable value by applying the private use percentage to the total operating costs of the car (actual and deemed costs). The formula is: Taxable value = [Operating costs × (100% − Business use %)] − Employee contributions Operating costs include: Fuel, oil, repairs, maintenance, registration and insurance Lease costs (for leased cars) Deemed depreciation (25% diminishing value) and deemed interest for owned cars Certain costs, such as tolls, car parking and insurance-funded repairs, are excluded. The business use percentage is determined by odometer readings, logbook records, and a reasonable estimate based on usage patterns. The three-month logbook requirement (operating cost method only). If you use the operating cost method, you must keep a logbook for at least 12 continuous weeks (roughly three months) to record: The date of each trip Odometer readings at the start and end Total kilometres travelled Whether the trip was for business or private purposes The purpose of each business trip This logbook is generally valid for five years, but you must start a new one if usage patterns change significantly (e.g., a role change, relocation or different duties). You also need to record odometer readings at the start and end of each FBT year. Why record-keeping matters. Keeping accurate records can support a higher business use percentage (and therefore a lower FBT bill). They also ensure you claim only legitimate business kilometres and help you provide evidence if the ATO reviews your FBT calculation. Finally, your records help you decide which calculation method (statutory or operating cost) is more tax-effective. Key takeaways for businesses and employees. If a car is available for private use, FBT may apply — even if the car isn’t driven often for personal trips. Electric cars may be FBT-exempt if they meet eligibility criteria, but you may still need to calculate their taxable value for reporting purposes. The operating cost method often works better if business use is high — but only if you have a compliant logbook. Keep odometer readings, expense records and a valid logbook to support your claims. Need help with your FBT obligations? Get it at Ascent Accountants. We guide business owners through every step of FBT compliance — from choosing the right valuation method to maintaining the right records for ATO peace of mind. If you provide cars to employees or use a company vehicle yourself, now is the time to review your FBT position before the next FBT year rolls over. Let’s talk .
Hey FIFO workers. You work hard for your money. Let’s make it work hard for you this EOFY. Tax time it’s your chance to set yourself up for long-term financial security. From deductions and super to loan reviews and goal setting, our FIFO EOFY checklist can help you turn your hard-earned income into lasting wealth.
Zoning can shape your property’s value, development potential and future income. Whether you’re buying, selling or investing in WA, understanding R-Codes is a must. Read the full blog to get the facts.
What does a “comfortable” retirement mean to you? For some, it’s travel and lifestyle. For others, it’s simply having the bills paid on time without stress. Whatever your version of comfortable looks like — the key is planning. We’re here to help!
Selling property in Australia? Don’t forget your Clearance Certificate — it could SAVE you THOUSANDS at settlement. If you don’t have one, the buyer is legally required to withhold part of your payment — delaying and reducing what you receive. Applying is free and easy — and Ascent Accountants can help you get it sorte
If your business paid contractors during the last financial year — think tradies, cleaners, and more — you may need to lodge a Taxable Payments Annual Report (TPAR). Missing it (deadline: 18 August!) can lead to late penalties. Not sure if you need to lodge or what to incl
