Trademarks & NIL
Updated: May 17
Intellectual property (IP) refers to creations that can be legally protected, such as inventions, literary and artistic works, symbols, names, images, logos, and designs used in commerce. These creations can be protected by law through patents, copyrights, trademarks, and trade secrets.
In the NIL ecosystem, trademarks and the use of "marks" are commonly discussed. This article will dive into what trademarks are, which stakeholders have a right to marks, and how to use them compliantly.
What are trademarks?
Trademarks can include company names, logos, product names, nicknames, slogans, and even sounds, colors, and shapes. The purpose of a trademark is to prevent confusion among consumers and to allow the trademark owner to establish their brand identity and reputation.
By registering a trademark, a trademark owner can prevent others from using a similar mark, which could create confusion in the marketplace. To identify a trademarked item, you can look for the ® or ™ symbol, which indicates that the mark is registered or in use as a trademark.
In general, a trademark is a valuable asset for a company and can be used to build brand recognition, increase customer loyalty, and protect against infringement by competitors.
What NIL stakeholders can have marks?
Many of the stakeholders in the NIL ecosystem have IP rights that they are or should be seeking to enforce and protect. For example,
Universities: name, logo, slogans/hashtags
Collectives: name, logo
Athletes: logos, nicknames
As the most "established" players in NIL, universities have an extensive list of trademarked assets, sometimes referred to as their "vault." These are the logos and colors you see on uniforms, fields, stadiums, and on licensed apparel.
However, if you are an athlete or collective and have a unique nickname, collective name, or logo, you should look into trademarking that logo, design, or nickname.
How to monetize your trademark?
Once you have spent the time and effort to create a trademark, there are several ways to reap the rewards
Licensing: You can license your trademark to other businesses in exchange for a fee or royalty. This allows other businesses to use your trademark for their products or services, while you earn revenue from the license fees or royalties.
Merchandising: You can also monetize your trademark by creating and selling branded merchandise such as t-shirts, mugs, and other products. This allows you to leverage your trademark to increase brand awareness and generate revenue from merchandise sales.
Sponsorships and endorsements: If your trademark has a strong following, you may be able to monetize it through sponsorships and endorsements. This involves partnering with other brands or individuals who are willing to pay you to use your trademark in their marketing campaigns.
Online advertising: You can also monetize your trademark by using it to drive traffic to your website or social media channels. This can help you generate revenue from online advertising.
It's important to note that monetizing your trademark requires careful planning and legal guidance to ensure that you are protecting your brand and complying with all relevant laws and regulations. You may want to consult with a trademark attorney or other legal professional to help you develop a strategy for monetizing your trademark.
Register your trademark: This is the most important step in protecting your trademark. You should register your trademark, either at the state or federal level. This will give you legal ownership of the trademark and the exclusive right to use it.
Monitor your trademark: Keep an eye on the market and make sure no one is using your trademark without your permission. This includes monitoring the internet, social media, and any other relevant channels.
Enforce your trademark rights: If you find that someone is using your trademark without permission, take action to stop them. This could involve sending a cease and desist letter, taking legal action, or working with a mediator to resolve the issue.
Use your trademark correctly: Make sure you use your trademark consistently and correctly. This will help build brand recognition and protect your trademark from being weakened or diluted.
Renew your trademark registration: Make sure you renew your trademark registration on time. Trademarks usually need to be renewed every 5-10 years.
Work with a trademark attorney: Consider working with a trademark attorney who can help you navigate the registration process, monitor your trademark, and enforce your rights if needed.