Marketing: The Benefits of Trademarks
As you may have learned in your marketing class, trademarks arguably benefit both consumers and companies. A registered brand name, design, or picture provides consumers with a familiar symbol by which they can identify desirable products. Were companies permitted to copy images or names from other brands, consumers would likely be confused about which brand they were actually purchasing; consequently, they might purchase products they were previously dissatisfied with or had no intention to purchase.

Trademarks benefit companies by building brand equity; that is, they convey value that does not relate to a product's functionality. Consumers might be willing to pay more for a particular brand, such as Duracell batteries, Bose entertainment systems, and Microsoft software, even though products of comparable quality may be available at a lower price. Hence, trademarks benefit consumers by distinguishing products, and they allow companies to reap the benefits of brand equity—the higher prices consumers are willing to pay for a particular brand.

Source: R. Kerin, S. Hartley, E. Berkowitz, and W. Rudelius, Marketing (New York: McGraw-Hill/Irwin, 2006), pp. 300–301.