Why Every Nigerian Business Needs a Trademark. 

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In Nigeria, many entrepreneurs stop at registering their business names with the Corporate Affairs Commission (CAC), assuming this provides them with full legal protection. However, CAC registration, while crucial for legal recognition, does not grant exclusive rights to use the name in commercial trade. For true brand protection, businesses must go further — they must register a trademark. 

Under Section 852 of the Companies and Allied Matters Act (CAMA) 2020, a name will not be registered if it is identical or so nearly resembles another registered name or trademark as to be likely to deceive or cause confusion. For example, someone would not be allowed to register a business name like “Lishee’s Hair Salon” if there is already a business registered as “Lishe’s Hair Salon” or “Lishee’s Hair Place”. This rule, however, only acts as a filter to prevent the registration of confusing or misleading names. It does not stop someone from using a similar name if they do not try to register it. 

On the other hand, under the Nigerian Trademarks Act, a registered trademark gives you stronger protection than just registering a business or company name. Trademark registration can also entitle you to sue someone for using a similar name, logo, or product, whether they’ve registered, try to register it, or not. 

Here are some reasons why every business in Nigeria needs to secure a trademark: 

1. Trademarks Offer Exclusive Rights Within Specific Classes of Goods and Services 

Trademark law registration in Nigeria is organised into 45 classes, each covering a specific category of goods and services. This system allows you to secure exclusive rights to a name or logo within your particular business sector. Forexample, if your company produces health supplements and you register a trademark under Class 5 (which includes pharmaceutical and veterinary preparations, dietary supplements, disinfectants, and more), you prevent others from using a similar or identical name within that category. 

Imagine you have registered the name “NutriBrine” for your dietary supplements; if another company tries to register or use the name “NutraBrine Health Ltd” for similar products, they could get into legal trouble for infringing on your trademark. Your registration under Class 5 gives you the legal right and protection to do this.  

2. A Trademark Prevents Brand Confusion or Copying in Commerce – CAC Does Not 

The CAC checks for identical or confusingly similar company names, but ony at the level of corporate name registration. This means that two companies offering similar services could still be registered, even if their names share one or two words. For example, if your company is called “WellCare Health Global Solutions Ltd”, another business could register “WellCare Naturals” and CAC could approve it, because the names are distinguishable enough at corporate registration level.  

However, if you have registered “WellCare” as a trademark in the relevant class for health-related services, you can stop others from using that name or anything confusingly similar within the same industry. 

CAC registration only prevents others from registering a similar name, not from using it, if they choose not to register. On the other hand, a registered trademark gives you the legal right to stop them from using it at all. This is the power of trademark protection. It prevents brand confusion in the actual marketplace, and not just on paper. 

3. Trademarks Empower You to Enforce Your Rights Through Legal Action 

If someone uses a name confusingly similar to yours, and all you have is CAC registration, your only option is to file a passing off claim. This can be difficult to prove, and is often costly. 

On the other hand, if you own a registered trademark, you have a legal right to stop others from using names and logos similar to your registered trademark. You can sue for damages, seek an injunction and stop further misuse. The Act makes it clear: even the use of a similar mark likely to cause confusion grants you a right to sue. 

4. Trademarks Cover More Than Just the Company Name 

Beyond your company’s legal name, your trademark can cover product names, services, logos, shape of goods, and even packaging designs. For example, a pharmaceutical company registered as “BioNova Ltd” might have product brands like “PainRel” or “CureMax.” Each of these brand names can be registered as separate trademarks separately to prevent copycats. 

This layered protection guards your entire brand ecosystem, not just the company’s legal name. A single CAC registration won’t extend to these multiple brand assets. 

5. Trademarks Are Valuable Business Assets 

A registered trademark is an intangible asset that increases your company’s overall valuation. It can be licensed, franchised, or sold, making it a great source of passive income. Investors and business partners view a trademark portfolio as a sign of business maturity, foresight, and competitive edge.  

Securing your trademarks also builds customer trust by preventing others from using your name, logo, or packaging. This makes it easier for customers to recognise and associate your name, logo, and/or packaging exclusively with your products, an essential factor for long-term success. 

Registering your business name with the CAC is only the first step in brand protection. Don’t wait for others to take advantage of your hard-earned reputation. Take control of your brand. Trademark it. 

At Syntax LP, we provide support and guidance throughout the trademark registration process, helping your brand secure its identity and protect its valuable assets.  

Need help securing your brand? Contact us today. 

 

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