Question

Should a trademark search be done before investing large amounts of money into building goodwill for a new product?

1) True
2) False

Answer 1

Yes, a trademark search should be done before investing large amounts of money into building goodwill for a new product. Conducting a trademark search helps avoid potential legal issues and costly consequences of trademark infringement.

Step-by-step explanation:

Yes, a trademark search should be done before investing large amounts of money into building goodwill for a new product. A trademark search involves checking if a similar trademark already exists for the intended product or service. By conducting a trademark search, you can avoid potential legal issues and costly consequences of trademark infringement.

For example, if you invest in building goodwill for a new product without conducting a trademark search and later discover that another company has already registered a similar trademark, you may be forced to rebrand, which can be expensive and disruptive.

Therefore, it is important to invest the time and resources in a trademark search before committing significant funds into building goodwill for a new product.