What is the Difference between Trademark and Service Mark?

In the business world, intellectual property is a critical asset that distinguishes a brand from its competitors. Among the various forms of intellectual property protection, Trademarks, and Service marks are essential tools for securing brand identity. However, many people are confused about the difference between a trademark and a service mark.

In this article, you will learn about the difference between Trademark and Service Marks, and how they differ for businesses. By the end, you will have a clear understanding of when and how to use them properly to protect your business name, logo, or slogan.

What is a Trademark?

A trademark is a symbol, word, phrase, design, or combination of these elements that represents a business’s goods or products. It helps customers recognize a brand apart from competitors in the market. It protects a brand’s identity and prevents others from using the name or logo without permission to ensure a brand's uniqueness, trust, and so on.

They contain R and TM marks; when registered they take (®) and when under process, they take unregistered (™). If a company uses ™, it means they are claiming the mark as their own, even if they have not legally registered it yet. But for full legal protection, they need to register it with the Trademark Office.

Here are some examples of Trademarks

• The Nike Swoosh logo on sneakers
• The Coca-Cola name and stylized font
• The Apple logo on electronic devices

Purpose of a Trademark

A trademark serves several key purposes. Some are mentioned below:

• Brand Recognition: A trademark helps customers identify and trust a business. It helps businesses stand out from others. Companies can create a unique identity that makes them easily recognizable. This gives them an advantage over competitors in the market.
• Legal Protection: Registering a trademark gives businesses exclusive rights to use their brand name, logo, or slogan. It prevents unauthorized use by others and takes legal action against infringement.
• Prevention of Confusion: A trademark ensures that no other business can use a similar name or logo. It helps to reduce customer confusion and protect the brand’s reputation.
• Business Value & Growth: A strong trademark adds value to a business. It can be licensed or sold. It helps to make it an important business asset that contributes to growth and expansion.
• Prevents Fraud & Counterfeiting: Trademarks help guard against fake products by ensuring that only genuine goods or services are associated with the brand.
• Market Advantage: Trademarks play a crucial role in advertising and marketing. Businesses can use them to build a strong brand identity. It helps to establish a company’s reputation and goodwill which leads to customer loyalty.
• Asset Creation: A registered trademark is a valuable asset for a business. It is considered as an intellectual property and holds financial value. Trademarks can be sold, franchised, or assigned, and businesses can record their costs, claim depreciation, and earn income from them.
• Assuring Quality: A trademark helps customers trust a brand by showing that its products or services meet a quality standard. It builds confidence and assures people they are choosing a reliable and well-recognized brand.

Legal Protection for Trademarks

In India, trademark protection is governed by the Trademarks Act, 1999. It gives exclusive rights to the owner of a registered trademark. This means no one else can use it without permission. If someone misuses the trademark, the owner can take legal action to stop them.

What is a Service Mark?

A service mark is a brand name or logo that helps customers identify a service provider. It can be a word, phrase, symbol, or design. As a form of intellectual property, it protects businesses by preventing others from using similar names or logos that might confuse customers. Thus, it is similar to a trademark but is specifically used to identify and distinguish services rather than physical products. It is used by companies that offer services rather than tangible goods.

Here are the Examples of Service Marks

• McDonald:  The golden arches of McDonald's are a Service Mark. When a business provides food services, its name is considered a service mark. This helps customers identify and trust the brand.
• McCafe: "McCafe" is a service mark owned by McDonald's. It is used to represent and identify their beverage services. This helps customers recognize McDonald's coffee and drink offerings easily. This mark is used for businesses selling coffee and drinks which help customers identify the brand.

Purposes of a Service Mark

A service mark helps customers recognize and differentiate a business’s services, just like a trademark does for products. It provides legal protection and helps companies brand, market, and promote their services effectively.

Here are the different purposes of a Service Mark:

• Identifying the Source of Services: Service marks help consumers recognize and differentiate a specific business's services from those of its competitors.
• Legal Protection: Just like trademarks, service marks are protected under intellectual property law. It prevents unauthorized use or imitation of the mark.
• Branding and Promotion: Service marks are a crucial part of a business's brand identity. It allows them to build recognition and establish a unique image in the marketplace.
• Consumer Trust:  This mark helps businesses gain credibility and a strong reputation. Customers can feel confident about the quality and reliability of their services.
• Legal Rights: A service mark gives businesses the exclusive right to use their name or logo in their industry. This prevents others from copying it and protects the brand’s identity and reputation.
• Business Differentiation: Customers can easily identify and remember a specific service provider. It sets a business apart from competitors and makes it easy for customers to recognize and trust the brand.

Legal Protection for Service Marks

A service mark is an intangible asset that helps businesses protect their brand identity. This mark can be used with the ? symbol without registration, but businesses can also register it with the USPTO (United States Patent and Trademark Office) to obtain stronger legal rights. Once registered, a service mark can also use the ® symbol just like a trademark. Logically it is correct but the (SM) symbol is not commonly used in everyday business. Most service providers prefer to use the (TM) symbol before registration and the (R) symbol after registration.

Key Differences between Trademark and Service Marks

Here are the key differences between Trademark and Service mark:

Features Trademark Service Mark

Definition A trademark can be a word, phrase, symbol, or design. It helps identify a product and makes it different from others. Businesses use trademarks to protect their brand and stand out in the market. A service mark can be a word, phrase, symbol, or design. It helps identify a service and makes it different from others. Businesses use service marks to protect their brand and build recognition in the market.

Used for Physical Products Services

Purpose This mark protects the brand and prevents others from using the same or similar marks. This helps avoid confusion and ensures customers recognize the real brand. This mark protects the identity of a service provider. It prevents others from using a similar name or logo. This helps customers easily recognize and trust the original service.

Symbol ™ (unregistered), ® (registered) ? (unregistered), ® (registered)

Legal Protection Can be registered with USPTO (United States Patent and Trademark Office) Can be registered with USPTO (United States Patent and Trademark Office)

Function Identifies the source of goods identifies the provider of services

Form filing required to register a mark TM-R Form TM-R Form

However, the difference between trademark and service marks in India has not changed over the years. Trademark protects products, and Service marks protect services. The rules for both remain clear and consistent. Both serve to identify the source of goods and services, respectively, and are governed under the Trade Marks Act of 1999.

The (TM) symbol is used for both Trademarks (products) and Service Marks (Services) when they are not registered. The (R) symbol is used only after registration and applies to both goods and services.

The ? (SM) symbol is technically meant for unregistered service marks, but it is not legally required or commonly used for businesses to protect their brand. The (TM) symbol is more popular and widely used. People can easily recognize this symbol.

According to the Trade Marks Act, of 1999, there are no such differences between Service Marks and Trademarks in terms of form filing. The TM-R form is used to register marks for both products and services. The classification (Nice Classification) simply determines whether a mark is being registered under goods (Classes 1-34) or services (Classes 35-45).

How to Obtain a Trademark and Service Mark?

The registration process is the same for both a Trademark and a Service Mark. Here are the steps to obtain it:

Step 1: Conduct a Trademark Search

As a Trademark Owner, you must search for existing trademarks on the official IP India Portal before applying for Trademark registration. This step is important because if the trademark is too similar to an existing one, the Registrar may reject the application.

You must first check if a similar trademark already exists. If no similar trademark is found, they can apply for registration. If a similar one exists, they need to change their trademark before submitting the application.

Step 2: Choose a Unique Mark

You must choose a unique and distinctive mark to identify goods and services. You must also consider the type of mark.

Step 3: Prepare and File Your Application

As an applicant, you must file a trademark application by using the appropriate form (for example TM-A) to apply with the trademark office. The form should include a clear image of the mark and a description of the goods or services associated with the mark. You must also pay the required filing fees and submit the application online for quick processing.

Step 4: Examination by Trademark Registry Office

The trademark office will review your application to ensure it follows the law. They will check whether your trademark is unique or not. This helps prevent confusion that businesses do not have identical trademarks.

Step 5: Trademark Journal Publication

Once your application is approved, your trademark will be published in the Trademark Journal. This gives others a chance to file an objection to stop registration, if they think your mark your mark is too similar to theirs or could cause confusion.

Step 6: Handling Objections or Oppositions

If anyone objects, you must respond and provide evidence to support your application. You may need to negotiate or resolve disputes before proceeding.

Step 7: Trademark Registration Certificate

If your trademark application is approved and all objections are resolved, you will receive an official registration certificate. This certificate provides you the exclusive right to use the trademark for the specific goods and services registered. You can now use the (R) symbol to show it is legally registered. It prevents others from using a similar mark without their permission and protects brand identity.

Conclusion

A Trademark protects physical products, while a Service Mark protects services. Both serve the same fundamental purpose to help businesses establish their brand identity and protect their intellectual property.

While neither symbol provides automatic legal rights, registering with the official IP India portal offers stronger protection against misuse. Both a Trademark (Product) and a Service Mark (Services) help safeguard your business and build brand trust.

By knowing when and how to use trademarks and service marks properly, you can ensure your business stands out and remains legally protected in a competitive marketplace. If you want to obtain a Trademark and a Service Mark for your business, contact Online Legal India. They have experts to guide you.