3 Crucial Roles of Trademarks in the Property Business
After being hit by the COVID-19 pandemic, property growth in Indonesia has shown promising developments in recent years. Property development projects resume after investors return, thanks to lower bank interest rates and regulations more conducive to foreign property investment in Indonesia, especially for those seeking long-term profits.
As one of Indonesia’s popular tourist destinations, Bali could be the most exciting example. Data from the Central Bank of the Republic of Indonesia shows that house prices in Bali only increased by 1% in the second quarter of 2023 compared to the previous quarter. In terms of market growth, it is estimated to continue to grow in 2024, thanks to the support of tourism, infrastructure investment, and increasing foreign demand. Bali continues to attract the interest of foreign investors looking for a place to live or invest in the promising property market.
The properties in question are premium housing, hotels, resorts, and villas. Luxury properties such as villas in elite areas in Bali are sought after not only by local investors but also by foreign investors from Japan, South Korea, and Australia.
With the growth rate predicted to be increasingly rapid, it is unsurprising that new property names will emerge from this industry, whether independent/boutique or under the auspices of large groups, which are similar but different. How do we ensure that the property named “AAA” in Ubud has the same quality as the properties named “AAA” in Kuta? Could they only have the same name, but the quality is very different? Do practices like this disadvantage property entrepreneurs?
These problems can be avoided if you register your property name and/or logo as a Trademark. There are at least three main benefits that you can get from a registered property Trademark, and those three benefits are:
1. Building Image Through Trademark
This is where we must start to be aware of the importance of registered Trademarks. Your property Trademark must be registered as a first step in building an image. A Trademark registered with the Directorate General of Intellectual Property of the Republic of Indonesia in Class 36 will protect the property business name and logo as Intellectual Property that you own. Thus, you are the exclusive owner of the name and logo. Only you have the right to use it, and building your image can begin.
Furthermore, you can assure customers that the quality of service at every “AAA” property name you own will always be maintained. In other words, consumers can identify comfort, safety, or excellent quality with your property Trademark.
2. Registered Trademark Prevents Piracy
Registration of a Trademark on the property can also prevent the criminalization of a brand used by other parties. Imagine the luxurious and comfortable image you have built suddenly damaged due to the appearance of the same property name created by someone you don’t know. A lousy property review may affect the image of your property. The property has nothing to do with you.
If your property Trademark is already registered, you can take all necessary legal steps to stop the use of your Trademark by other parties. Since Trademark registration in Indonesia applies the first-to-file principle, meaning that the rights are given to the first registrant, you must register your Trademark as soon as possible before being preceded by another party.
On the other hand, if you have yet to register a Trademark on your property while another party has appeared as the legal owner of the name you used, you could lose the right to use the name on the property you have built so far. Another party can ask you to pay a hefty amount due to your negligence in registering the Trademark on your property.
3. Trademark Increases Property Value
With a registered Trademark and a maintained image, your business expansion can continue to increase due to investment from within and outside the country. As an intangible asset, a Trademark becomes an added selling point for you in providing licenses to parties interested in building new properties using the name of the property you own. If your property business already has a registered Trademark, business expansion can be done as a franchise.
You can read in our previous article how licensing and franchise businesses can increase the benefits of your brand.
Considering the importance of Trademark registration in the property business, you don’t need to think long about registering the property Trademark that has been the focus of your business for so long. If you have any more questions about property Trademark registration, please don’t hesitate to contact us via [email protected].
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