Many entrepreneurs rush to register their LLCs, obtain EIN numbers, and open business bank accounts—but they’re overlooking the critical first foundation of business ownership. According to trademark attorney Rosezena Pierce, this oversight can cost minority business owners everything they’ve worked for.
“A lot of times, especially minority entrepreneurs, we think we need to get an LLC, we need to get our EIN number and get a bank account, and we own our business. But it really starts with owning the name first,” Pierce explains. “Will you build a house on land you don’t own? Then why build businesses and brands if we don’t own them?”
This simple but powerful analogy perfectly captures why trademark protection isn’t just paperwork—it’s the bedrock of sustainable business success, especially for entrepreneurs from underrepresented communities.
The Misconceptions Keeping Entrepreneurs Unprotected
The trademark registration process is widely misunderstood. Many small business owners, particularly those from minority communities, assume their enterprises aren’t “big enough” to need trademark protection or that the process is expensive and complex.
“So many people stay away from a legal process because the first thing they think is it’s expensive and it’s intimidating,” Pierce acknowledges. “But what I always ask people is: ‘Is it more expensive to prevent the fire or fight a fire later?’”
This practical framing helps entrepreneurs understand trademark protection as an investment rather than an expense. While the initial cost may seem significant to a new business owner, it pales in comparison to the potential losses from trademark infringement claims.
“Instead of going to invest hundreds and thousands of dollars into building a brand, let’s say you’re going to buy a sign for $25,000 for your restaurant business or investing $15,000 into your apparel business and putting a name on it that you do not own. You definitely want to make sure that you’re securing the process first,” she advises.
The Devastating Reality of Trademark Infringement
The consequences of building a business without proper trademark protection can be catastrophic. Pierce has witnessed numerous entrepreneurs forced to surrender everything they’ve built because they didn’t secure their brand names.
“I had a client who had to turn over a restaurant sign and shut down his business to do a rebrand because the name that he utilized was a name that was already registered in trademark,” she shares. “There have been situations where business owners have taken [money] out of their 401k to invest in their business and order 10,000 units of product and only to sell 200 units. [Then] receive a cease-and-desist letter demanding that all those products be turned over so they can be destroyed by the rightful owner.”
These aren’t isolated incidents—they represent the harsh reality faced by many entrepreneurs who skip the foundational step of trademark research and registration. Under trademark law, it’s not just identical names that pose problems, but anything “confusingly similar” in the same industry.
How Trademark Protection Creates Economic Power
For minority entrepreneurs, trademark ownership represents more than legal protection—it’s about claiming economic power and creating leverage in business negotiations.
“When you have the name and you own the name, you have the power,” Pierce emphasizes, pointing to high-profile examples like Kanye West’s Yeezy brand. “Think about the situation he had with Adidas. Adidas didn’t fire Kanye right away because they understood that he had the power. He owned the brand name Yeezy. And they knew if they let him go and severed ties, they were going to lose out on billions of dollars.”
This power translates to multiple economic opportunities:
- Licensing revenue: “You have the right to say who can and who cannot utilize your brand name. You’re in a position where you can license your name, go into partnership deals, and do licensing deals.”
- Business valuation: “When you own a trademark, a trademark is an asset. If you wanted to sell your business, now your business can be valued at a certain amount that it probably couldn’t have been valued at had you not had the trademark.”
- Negotiating leverage: Ownership gives entrepreneurs the ability to dictate terms rather than accept what’s offered.
- Protection from exploitation: Many minority business owners have seen their innovations appropriated without compensation—trademark protection creates legal recourse.
Intent to Use: Protecting Your Brand Before Launch
One of the most valuable but underutilized trademark strategies is filing an intent-to-use application, which allows entrepreneurs to secure rights before their business even launches.
“Fortune 500 companies, before they even launch a brand to market, they’re going to do the research first, and then once they clear the mark, they file an intent-to-use application to claim some rights to the brand and get it on the registry,” Pierce explains.
This approach gives entrepreneurs up to 36 months to begin using their trademark while maintaining their priority claim date—a crucial advantage in competitive markets.
“Under the trademark process, in order to be issued registration, you do have to show usage,” Pierce notes. “But you have at least 36 months, which is almost three years, to show or adopt the usage and then show to the government you’re using it so that you can be issued registration.”
Building Generational Wealth Through Trademarks
Perhaps the most powerful aspect of trademark protection is its potential for creating lasting legacies that extend far beyond the original business owner’s lifetime.
“A trademark will last as long as you use it,” Pierce explains. “Coca-Cola has been registered since 1893, Mercedes since 1902. A trademark can outlive the founder, the owner.”
For minority entrepreneurs focused on building generational wealth, this longevity makes trademark protection an essential part of succession planning. By maintaining registrations through periodic filings with the USPTO, business owners secure assets that can benefit their families for generations.
“This is not just securing a brand, but it’s truly securing your legacy,” Pierce emphasizes. “This is an asset that you can pass down to your family to continuously use and profit from and live off of as long as the business is continuously running.”
Standing Strong Through Market Changes
In an era where some corporations are rolling back diversity initiatives, trademark protection becomes even more crucial for minority business owners seeking long-term stability.
“We cannot control companies if they want to do DEI rollbacks,” Pierce acknowledges. “But what we can control is the ownership of our own businesses. If they’re going to roll back these initiatives, we want to make sure that we are owning our brands, building solid brands to where we’re just irreplaceable.”
This perspective positions trademark protection as not just a legal necessity but a strategic response to shifting corporate landscapes—ensuring minority entrepreneurs maintain control regardless of external policy changes.
“If they want to take away these initiatives or not, they still have to do business with you because you have the great product, you have the great service,” she adds.
Taking the First Step Toward Trademark Protection
For entrepreneurs ready to secure their brands, Pierce recommends starting with thorough research to ensure the name isn’t already in use or confusingly similar to existing trademarks.
“Before you adopt the name and build the name, do the research,” she advises. “Make sure nobody is out there using this name or claiming rights to it.”
Once research confirms availability, filing a trademark application establishes the legal foundation for everything that follows—from marketing investments to product development to business expansion.
For women entrepreneurs specifically interested in learning more about trademark protection, Pierce hosts “Secure Her Brand 2.0,” an educational event scheduled for March 29th in Atlanta. Registration is available at secureherbrand.com using the code MBE40 for a $40 discount.
Her parting advice distills years of legal expertise into one powerful directive: “Secure the brand via trademark law so you can secure the bag. It’s going to give you so much confidence building your brand knowing that your brand is secured already and protected.”
For minority and women entrepreneurs, this isn’t just legal advice—it’s the foundation of economic empowerment and generational wealth creation that begins with a single, essential step: owning what you build.
