In an increasingly globalized world, any brand that is successful in its home country may seek to grow by applying its business model to other markets. In such cases, it is very important to develop an effective strategy for internationalization, protection—and, in some cases, exploitation—of the brand, or even for defending it against third parties.
However, building a global brand is much more than simply exporting a business model—one that has been proven and is likely successful in its home country—to other countries. A brand is no longer just a symbol, a name, a slogan, or a logo; it has become an organization’s value proposition.
Today, brands are not merely necessary elements for distinguishing one company’s products or services from those of others in the market or for identifying their corporate origin; rather, some of them are transformative forces for our collective well-being and drivers of social progress.
You don't mess with brand value
In this context, the decision to internationalize a brand is a delicate matter that must be approached with the utmost care to ensure its successful development.
In certain sectors, this decision is particularly important, because the brand can become a company’s primary and most valuable asset. Consider some well-known brands in sectors such as the biomedical and pharmaceutical industries, the luxury sector, fashion and perfumery, the technology industry, engineering, and the hospitality and food industries.
When it comes to the legal decisions that need to be made, there are a number of factors that cannot be overlooked when internationalizing a brand:
- The most obvious and immediate step is to seek expert advice on international branding and overseas markets.
- The first step in this process would be to file an application for protection. The initial trademark application is generally filed in the country where the business is established and where the first products and/or services bearing the chosen trademark are introduced to the market.
- Based on that initial application, we will be able to extend the trademark to other countries, seeking the most efficient approaches that align with the company’s strategic plan, the intended use of the trademark, and the laws of the selected country or countries.
- It is necessary to confirm that the trademark strategy does not conflict with other rights and respects the protection strategies for other intangible assets (patents, designs) whose protection may overlap with that of the trademark for the same product or service.
The 10 Essential Steps to Successful Internationalization
Although strategies will vary depending on each company's needs, there are 10 essential steps to ensure the successful internationalization of a brand:
- The first—and perhaps most important—step is to choose the trademark that will be used to identify the products and/or services, as well as its purpose. It is essential to maintain consistency from both a business and legal perspective.
- Determine the markets in which a company operates or plans to operate—that is, the priority markets and those of primary interest. In these markets, a series of decisions will need to be made to protect trademark rights.
- It will be crucial to verify whether the trademark is available in all the markets where the product or service will be offered.
- In addition to other business considerations, such as marketing objectives, the obstacles identified in a given country will determine whether a homogeneous branding strategy or, conversely, a heterogeneous branding strategy—one that is well-suited to the markets and business needs—will be adopted.
- Usage Strategy. The trademark must be registered in a manner consistent with how it will be presented in the market, and vice versa. Inconsistencies create conflicts and lead to problems, to the point that a decision that is inconsistent between use and registration can result in the loss of a right. It is also important to consider who will use the trademark, how it will be used, and when it will be used.
- Decide whether brand management will be direct or indirect. If the brand is strong and third parties other than the owner can also use it—from which royalties can be collected—it will be necessary to establish relationships with local agents (distributors, licensees, assignees, etc.) and develop a solid contractual plan.
- Oversights can be costly: If you protect your brand but fail to register the domain name—or vice versa—you’ll face a serious problem. A sound international strategy cannot overlook either of these aspects in a world where an easily findable online presence is practically mandatory.
- If a trademark is vulnerable to infringement, protection through registration alone may not be sufficient. Therefore, it is important to develop a robust plan for defending and protecting the trademark that also includes effective measures at borders and customs. A good trademark strategy must be comprehensive.
- In today's world, with the widespread use of the Internet, social media, the metaverse, and so on, it is advisable to hire a service to detect illegal activities and develop a plan to prosecute and prevent them, especially in certain sectors that are more vulnerable to counterfeiting or trademark infringement.
- Confirm that all industry regulations are being followed. A good branding strategy is useless if the rules for bringing a product or service to market are not followed. Pharmaceutical branding is a prime example of this.
Therefore, before internationalizing a brand, it is essential to lay a solid foundation in order to achieve promising growth for one of a company’s greatest assets. It is important to have a clear vision, proceed cautiously, and follow these steps. In any case, it is advisable to work with accredited experts in the field.
Cristina Arroyo, Director of the International Brands Division at ELZABURU
