Trademark vs. Service Mark: Which One Does Your Business Need?

When establishing a brand, understanding the difference between a trademark and a service mark is crucial for businesses. Both types of marks serve to identify and protect a business’s assets but they apply to different types of offerings. 

Trademark

A trademark is a symbol, word, phrase, design, or combination thereof used to identify and distinguish the source of goods from one party to another. Trademarks help consumers recognize products and differentiate them from those offered by competitors. Examples include brand names, product logos, and distinctive packaging.

Key Characteristics of Trademarks:

• Used for Goods: Trademarks are specifically used to identify tangible products.

• Visual Indicators: Trademarks can be seen on product packaging, labels, and advertising.

• Examples: Nike’s “Swoosh” logo and Apple’s bitten apple symbol are well-known trademarks.

Service Mark

A service mark, on the other hand, is used to identify and distinguish the source of services rather than products. Service marks function similarly to trademarks but apply to businesses that provide services instead of goods. These can include everything from professional services to entertainment and hospitality.

Key Characteristics of Service Marks:

• Used for Services: Service marks represent businesses that offer intangible services.

• Examples of Usage: Service marks can appear on advertisements, brochures, websites, and other marketing materials.

• Examples: The FedEx logo is a service mark, as it represents the company’s delivery services.

Similarities Between Trademarks and Service Marks

• Purpose: Both trademarks and service marks help protect the brand identity of a business and prevent consumer confusion.

• Registration Process: The process for registering a trademark and a service mark is nearly identical. Both can be registered with the United States Patent and Trademark Office (USPTO) for enhanced legal protection.

• Symbol Usage: Once registered, businesses can use the ® symbol to indicate that the mark is protected. Before registration, the TM (for trademark) or SM (for service mark) symbol can be used to indicate that a mark is claimed.

Differences Between Trademarks and Service Marks

• Application: The most significant difference lies in their application. Trademarks apply to goods, while service marks apply to services.

• Examples: If you sell computers, you would use a trademark. If you run an IT support business, you would use a service mark.

• Visual Placement: Trademarks often appear directly on the product or its packaging, while service marks are typically used in advertisements and promotional materials.

Deciding Which Mark You Need

Choosing between a trademark and a service mark depends on the nature of your business. If your company deals with physical products, a trademark is the appropriate choice. If your business provides services, then a service mark is what you need. In some cases, a business may need both if it offers products and services.