Practical Guide for Small and Medium-Sized Sellers to Protect Trademarks at Low Cost: Core Categories and “Intent-to-Use” Strategy

For small and medium-sized sellers, trademarks are the core assets of their brands. However, the high cost of registration often deters them. How can these sellers efficiently protect their trademarks on a limited budget? The following two strategies—prioritizing core categories and utilizing the "intent-to-use" application—can help small and medium-sized sellers build a strong brand protection moat at a low cost.

1. Precision Focus: Prioritize Core Categories

Trademark registration follows the "classification protection" principle, with the globally recognized Nice Classification dividing goods and services into 45 categories. Small and medium-sized sellers should avoid a "scattergun approach" and instead concentrate resources on protecting their core business areas.

Operational Tips:

Identify Core Business: Analyze the categories corresponding to your main products/services. For example, clothing sellers should prioritize Class 25 (clothing and footwear), while bubble tea shops should focus on Class 43 (food and beverage services).
Use Classification Tools: Utilize tools such as the National Intellectual Property Office website or international classification tables to verify specific product entries and avoid selecting the wrong subcategories.
Defensive Expansion: If the budget allows, consider registering related categories. For instance, electronics sellers (Class 9) can add Class 35 (e-commerce platform sales) to prevent online infringement.

Case Study: A handmade soap brand focused on skincare products (Class 3) but failed to register Class 5 (medicinal soap). A competitor later registered the trademark in Class 5, forcing the brand to buy back the trademark at a high price. While focusing on core categories, sellers must also be wary of risks associated with business expansion.

2. Preemptive Positioning: Leverage "Intent-to-Use" Applications

In some countries (e.g., the U.S., Canada), trademark applications can be filed based on "intent-to-use," even if the trademark has not yet been used commercially. This approach allows small and medium-sized sellers to secure preparation time and reduce the risk of trademark squatting.

Advantages:

Secure Filing Date: Trademark rights are typically granted to the "first-to-file," and "intent-to-use" applications can lock in priority rights early.
Flexible Product Preparation: After receiving the initial approval notice, sellers usually have 6-36 months (depending on the country) to submit evidence of use, providing ample time for product development and market testing.
Low-Cost Trial: If the project is discontinued, the application can be abandoned, avoiding losses from full registration fees.

Operational Notes:

Timely Submission of Use Statements: Failure to provide evidence of use within the deadline will result in the application being voided. For example, the U.S. requires applicants to submit a statement of use within six months of approval, extendable to three years with additional fees.
Geographical Limitations: China currently does not have an "intent-to-use" system, requiring actual use before registration. Sellers expanding overseas need to plan accordingly.

3. Supplementary Strategies: Low-Cost Reinforcement of Protection

Regular Trademark Monitoring: Use free tools (e.g., TMView, Quanmaster) to monitor similar trademarks and file objections promptly.
Contractual Safeguards: Ensure that manufacturers or partners sign confidentiality agreements clarifying trademark ownership to avoid leakage risks.
Domain and Social Media: Register brand-related domain names (.com/.cn) and accounts on major platforms to maintain brand consistency.

Conclusion

Trademark protection is not an overnight process. Small and medium-sized sellers need to anchor their efforts in "core business," flexibly apply rules, and balance costs and risks. Whether focusing on core categories or leveraging the "intent-to-use" mechanism, the essence is to create growth opportunities for the brand. In a highly competitive market, low-cost strategies are underpinned by precise insights into one's business and forward-looking planning.

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