What Startups Can Learn from Harry Potter about the Value of Trademark Registrations

Trademark attorneys often talk about how a trademark embodies the goodwill of a business. When I try to wrap my brain around the idea, I often think about my favorite part of the Harry Potter series.

Toward the end of the series, Harry asks Professor Dumbledore whether something he is experiencing is real or happening in his head. Dumbledore responds, “Of course it is happening inside your head, Harry, but why on earth should that mean it is not real?”

Just because it can be hard to grasp the intangible goodwill of a business it does not mean the goodwill of business is not a real thing. Of course, we typically recommend that our clients register their trademarks for this exact reason because a registration helps take that intangible goodwill and make it more tangible.

Warner Bros., which owns the Harry Potter brand, certainly understands the importance of trademark registration having registered several hundred trademarks including the words “HARRY POTTER.” Notably, the Harry Potter brand has been valued from $15 billion to over $43 billion in recent years.

Now, not every brand will be as successful as the Harry Potter brand, but there are still a number of reasons why businesses of any size should consider registering their trademarks. Trademark registration is not just for big, established brands. Brands of all sizes can benefit from a registration in a number of ways. Indeed, a recent study found that “the number of new trademark registrations” a business has “positively predicts firm profitability, stock returns, and underreaction by analysts in their earning forecasts.”

Translation: Register your trademarks.

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