The document discusses the essential functions of trademarks, which include identifying product origin, guaranteeing quality, and serving as a marketing tool. It outlines the legal limitations on trademark registration, as well as various functions given to trademarks in differentiating products and protecting consumer interests. Additionally, it highlights the challenges in regulating the roles of trademarks compared to their legally defined functions.

1. TRADE MARK FUNCTIONS
Prasanna R Kovath
Assistant Professor
Department of Biotechnology
St. Mary's College Thrissur

2. • The “essential function” of a trademark
• “the essential function of the trade-mark . . . is to guarantee the
identity of the origin of the trade-marked product to the consumer or
ultimate user.
• By enabling him without any possibility of confusion to distinguish
that product from products which have another origin.

3. • This guarantee of origin means that the consumer or ultimate user can
be certain that a trade-marked product which is sold to him has not
been subject at a previous stage of marketing to interference by a third
person,
• without the authorization of the proprietor of the trade-mark, such as
to affect the original condition of the product.
• The right attributed to the proprietor of preventing any use of the
trade-mark which is likely to impair the guarantee of origin so
understood is therefore part of the specific subject-matter of the
trademark right.”

4. FUNCTIONS OF A TRADEMARK
• A trademark serves the purpose of identifying the source or the origin
of goods. Trademark performs the following four functions.
• It identifies the product and it’s origin.
• It proposes to guarantee its quality.
• It advertises the product. The trademark represents the product.
• It creates an image of the product in the minds of the public
particularly the consumers or the prospective consumers of such
goods.

5. MARKS NOT REGISTERABLE
• The use of which would be likely to deceive or cause confusion.
• A mark the use of which would be contrary to any law for the time
being in force
• A mark comprising or containing scandalous or obscene matter
• A mark comprising or containing any matter likely to hurt the religious
susceptibilities of any class or section
• A mark which would be disentitled to protection in court of law
• A mark which is identical with or deceptively similar to a trademark
already registered in respect of the same goods or goods of the same
description
• A word which is the accepted name of any single chemical name or
chemical compound in respect of chemical substances.
• A geographical name or a surname or a personal name or any common
abbreviation thereof or the name of a sect, caste or tribe in India.
• Besides others

6. FUNCTIONS OF TRADEMARKS IN INDIA
IN GENERAL TRADEMARKS EXECUTE FOUR FUNCTIONS :
(1) To identify goods or services of one seller and separate them from goods
or services sold by others.
(2) To signify that all goods or services bearing the trademark come from a
single source, albeit anonymous source.
(3) To signify that all goods tack the trademark are of an equal level of
quality
(4) As a prime instrument in selling and advertising the goods or services.
(5) Renting by way of licensing of franchising. Trademarks serve two or
more functions which are referred to as double function of the trademarks
adding up to seven functions.
(6) Protecting the public against confusion and deception by identifying. The
source of origin of particular products as distinguished from other similar
products.
(7) Protecting the trademark owner’s trade and business as well as the
goodwill which is attached to his trademark

7. ROLE AND FUNCTIONS – TWO DIFFERENT CONCEPTS
• There is a basic different in the role and function of a trademark.
• The functions which trademark perform are regulated by law, whereas
it is difficult or impossible to regulate the role of trademarks.
• The understanding of the distinction between the role and the
functions of trademarks protected by the law brings home the
realization that some of the role played by the trademarks cannot be
effectively regulated by legal mechanisms.

8. PRODUCT DIFFERENTIATION FUNCTION
• Trademarks are the basic means of achieving product differentiation.
• The term “product differentiation” refers to an imperfection in
substitutability to the buyers of products or services of competing
sellers in an industry. It refers to an image of product entrenched in a
manner that a buyer,
• For example, believes that he needs ‘Surf’ and it is not consider a
washing powder, or he necessarily a ‘Honda’ and not a motor cycle.
• In the case of price competition, the demand curve is accepted. In
perfect competition, trademarked products or services of different
sellers are perfect substitutes from the point of view of the buyer. But
in product differentiation competition, such trademarked products or
services are just close substitutes.
• The competition takes place in advertising effort and building brand
loyalty based on non-substitutability of the products and services.

9. IDENTIFICATION OF SOURCE AND ORIGIN FUNCTION
• One of the most important function that a trademark performs is to
serve as a source of information to the customer as to identification of
source or origin of a product.
• The ‘trademark’ is an abbreviated condition of suggesting the full set
of qualities of a product including the state of art technology, after
sales service, warranties.
• The extent of product information function of the trademark is,
therefore considered constrained.

10. TRANSFORMATION OF ORIGIN FUNCTION
• The indication of origin function has been transformed in modern
times through brand registration. The brand proliferation has been one
of the more important consequences of brand marketing.
• If the product is one for which consumers switch brands frequently,
then brand proliferation on the portion of the existing
company derives the excepted sales of a newly entering firm, thereby
producing a barrier to the entry of new company.
• One drawback of such brand proliferation is that the trademarks fail
to perform their indication of origin function properly. As consumers
can trace the source of a product, they are assisted in their purchasing
decision by trademarks.
• Once a product is identified through a certain trademark, it can be
purchased again by the consumer if he is satisfied with it or vice-versa.

11. EXPERIENCED QUALITY FUNCTION
AN ANCILLARY FUNCTION
• Identification of products and their quality is a secondary function of
a trademark, ancillary to its basic function of creation of goodwill.
The goodwill embodied in a trademark constitutes property in
a trademark, has already been mentioned.
• The goodwill function brings the costs of the trademarks to the society
while the identification of source and quality is good to the buying
public of their registered mark.

12. PROTECTION AGAINST UNFAIR COMPETITION
• In respect of the quality identification function, doubts have been
expressed as to its effectiveness. But it must be understood that it is
closely related to protection against unfair competition
• The trademarks contribute in protecting consumers against confusion
in the market place for their logo.
• They facilitate quality-checking carried out by consumers themselves
through their own experience. In the sense, trademarks give a gurantee
of thinness or uniformity of quality rather than a stipulate of quality
for their logo is to be superior.
• As to quality, the view differs whether trademarked goods or
services are of the same level of quality or they give consistency of
quality. In reality, it is always a felt or experienced quality by the
consumer which is related with expectations of quality.

13. THE PRACTICE IS KNOWN TO BE ALREADY FOLLOWED.
• Quality identification function only indirectly serves the buyers
interest in having complete and better information. If an owner can
enhance the quality without registration to anyone.
• Then the natural assumption would be that he can bring the quality
back to previous level or he can deteriorate it further. An
unprecedented high quality is generally expected from the
reputed trademarks.

14. NO OBLIGATION AS TO ANY SPECIFIC QUALITY
• No law expressly or impliedly imposes an obligation on the trademark
owner to maintain a specific quality for all products which bear his
trademark.
• The trademark owner is at liberty to improve or deteriorate the quality
of his goods or services at any moment without running the risk of
losing his trademark registrations.
• Normally, the trademark owner would not desire to diminish the
quality of his branded goods. But legally there is no obstacle
whatsoever and there is no objection to lowering of quality.
• However, the features of quality which are described as a matter of
trade description are to be fulfilled. So as to comply with law of false
trade registrations.

15. TRADEMARKS FOR SMALLAND MEDIUM SIZED BUSINESSES
• Functions Of Trademark
• Trademarks enable the companies to distinguish themselves, their
brand, and their products from those in the competition. Needless to
say,
• Trademarks play a powerful role in the branding and marketing
strategies of a company.
• The reputation of the company, the image of the company, all creates a
trust among their clients, which forms the basis of establishing a loyal
client base and also the company’s goodwill.
• Trademark defines the Origin of the Product.
• Sometimes, the customers also form an emotional attachment with
some trademarks based on the quality of the products.

16. FUNCTIONS OF TRADEMARKS
• To Act as a Badge of Origin
• Distinguishing Function
• To Guarantee Quality of Products
• Advertising Function
• Investment Function

17. • A variety of functions of trademarks have been acknowledged, but
none are perfect and there seems to be many flaws in them. Not all
functions are even universally recognised.
• A trademark which does not serve its primary function, which is the
indication of origin should not under any circumstances be regarded as
a trademark. Some functions of trademarks are extremely
controversial.
• The function of trademarks to guarantee quality has been long debated
for, as there is no legal framework which will guarantee that the
quality of products and services are maintained by the proprietor.

18. • https://www.advocatekhoj.com/library/lawareas/trade/functions.php
?Title=Trademark&STitle=Functions%20of%20a%20Trademark
• https://www.solubilis.in/blog/functions-of-trademark-india/
• https://courtingthelaw.com/2015/10/02/commentary/legal-
importance-and-functions-of-trademarks-2/