Intellectual Property and the New Zealand Financial Services Industry: One of the Most Important Types of Intellectual Property from a Financial Institution's Perspective Is Its Trade Marks, Otherwise Known as Its Brand. It Is Important to Establish a Distinctive Brand from the Outset

By Catley, Penny; Whitaker, Brooke | Journal of Banking and Financial Services, April-May 2005 | Go to article overview

Intellectual Property and the New Zealand Financial Services Industry: One of the Most Important Types of Intellectual Property from a Financial Institution's Perspective Is Its Trade Marks, Otherwise Known as Its Brand. It Is Important to Establish a Distinctive Brand from the Outset


Catley, Penny, Whitaker, Brooke, Journal of Banking and Financial Services


Although it is intangible, intellectual property is an important asset of all organisations. In the financial services industry, creating and then protecting unique intellectual property can provide competitive advantages and increase business value.

This article outlines some of the forms of intellectual property that are of interest to financial institutions.

The importance of branding in the industry

Intellectual property encompasses intangible assets such as patents, registered designs, copyright and confidential information. Perhaps the most relevant form of intellectual property for financial services businesses is branding, or trade marks. Strong branding is particularly important where you are offering a service rather than selling a physical product. Differentiating your brand will help mark and characterise the uniqueness of the service.

A trade mark, or brand, is a sign, which distinguishes the goods or services of your business from those of other traders. It can symbolise the specific service (or good) in question, in addition to the qualities related to that service and/or the organisation that provides it. Branding is a way of associating a service with the values surrounding the purchase of that service.

Over time, consumers' experiences (direct and indirect) create expectations of the service, whether positive or negative. And when positive, the brand acquires what is known as the 'goodwill' quality, or reputation, which can be the driving force behind a successful business. Once you have created this goodwill, you may wish to protect it to your exclusive benefit and prevent others from using it.

Branding overview

Branding rights can include trade marks (both registered and unregistered), packaging and 'get-up' (other types of physical traits related to the brand, for example, the interior decor for a chain of fast-food restaurants). A trade mark can be a word, logo, slogan, numeral, or any other sign. It can also comprise images, shapes, colours, sounds, and even smells associated with the brand.

There are certain things that help to make successful brands, across all industries. They include:

* Distinctiveness: A brand name should not describe the goods or services being offered. If your competitor (Company A) uses a name which essentially describes its service, for example, HOME LOAN, and you (Company B) offer the same service (albeit on mildly different conditions), under the name HOME LOAN, it will be very difficult for Company A to prevent you from doing this. This is because you are using non-distinctive words to describe your service. You may also find it difficult to differentiate your services from those of Company A, notwithstanding the fact that you provide a better and cheaper service.

The ideal is therefore to create and use a brand which does not directly describing the goods or services, but indirectly alludes to certain characters or qualities. It is also useful to note that it will be difficult to protect the brand HOME LOAN within the framework of intellectual property law. Inventing a new word is therefore a good way to achieve a distinctive trade mark.

* Pronunciation and recall: Brand names and other trade marks should be easy to pronounce and remember.

* Consistency: Once you have established your brand, invest time and money to promote and protect it. What good is a brand if you do not take action to prevent your competitor from using it? If you have a range of different financial products in the same family, consider adopting a 'house' or 'parent' brand that can serve as an umbrella under which other products in the range can sit.

* Image: Create an appealing image. Today, image is almost as important as the product or service itself. How the product looks will influence purchasing power.

Brand protection and Fair Trading Act issues

Trade mark legislation protects registered trade mark owners by prohibiting the use of the same or similar marks for the same or similar goods or services where the use of the trade mark is likely to deceive or confuse.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Intellectual Property and the New Zealand Financial Services Industry: One of the Most Important Types of Intellectual Property from a Financial Institution's Perspective Is Its Trade Marks, Otherwise Known as Its Brand. It Is Important to Establish a Distinctive Brand from the Outset
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.