SMEs and Intellectual property

How a trademark contributes to the creation of a good reputation of a company: the experience of the Serbian company Proteks

“Legal person “Proteks ltd” has protected signs by a trademark, because of the possibility to prevent competence to use the same or similar mark and to build image recognizable at the market by using one s own trademark.

We had the case of using trademark which was very similar to our own. Unless we had reacted in due time to prevent that, our sales would decrease and we would loose reputation with distributers and the final buyers. The problem lies in the quality of goods that the competition packed. The poor quality of their goods introduced confusion with the buyers.

Time is necessary to acquire the recognizable brand and the trademark that inspires confidence and trust with the buyers. It is senseless to enter into business without protecting the name or the image of the sign that will be used in business and which will mark the product. After a longer period of using the protected sign, and if it has become a brand, the price of the product is increased, as well as the company, the holder of the trademark and the trademark itself. The reason for this is that the trademark represents value, immaterial asset of the business company. So, after acquiring capacity to be easily recognized at the market, in the case of sale of the company or the trademark, one can get income in an easier and simpler way.

Since 2003, from the time when the product was launched, and at the same time, we are the owners of the trademark, until today, we have managed to become recognizable on the market by the visual image of our package and to win the trust of the consumers. That means a lot to us today, because, now, it is easier for us to position our goods in the retail objects in the regions where we have been present for a longer time and the consumers are asking for our goods more than for the goods of our competition, the other producers. Our turnover increases, along with the profit margin. Now, we can allow ourselves to be slightly more expensive than the competition, we have a bigger profit margin per unit of product.

Occasionally, we search the data bases of trademarks and industrial designs for the sake of following up the new ideas and the plans of the competition.”

Milos Zivanovic, owner of Proteks, Ltd.

Experiences of Serbian companies

Find out first hand the stories of Serbian companies about the experience with intellectual property