7 Costly Mistakes Entrepreneurs Make When DIY-ing Trademarks | Foundd Legal

7 Costly Mistakes Entrepreneurs Make When DIY-ing Trademarks

Avoid these traps before your brand becomes someone else’s asset. 

You’ve built a brand you love. Your website is live, your socials are buzzing, and maybe you’ve even started running ads. 

But here’s the scary truth: if you haven’t registered a trademark, your brand isn’t legally yours. 

And while trademarking might sound as simple as “just filing the form,” I see so many founders DIY the process, make one of these seven mistakes, and end up with:

  • cease & desist letter
  • An expensive forced rebrand
  • Or a wasted trademark application they can’t fix 

Let’s save you from that headache.

Mistake 1: Thinking Your ABN or Business Name Protects You 

Here’s the #1 misconception: 

“I’ve registered my business name with ASIC,  I’m safe.” 

Nope. 

Your ASIC registration or ABN does not give you legal ownership of your brand name. 

It just lets you trade under that name. 

If someone else files a trademark before you do?

They can send you a cease & desist… and legally, they’ll win. 

 

Mistake 2: Only Doing a Quick Google Search 

Too many DIYers check Google, see no obvious competitors, and hit “submit” on their application.

But trademarks are won and lost in the details:

  • Similar names in the same class still count as conflicts
  • Spelling variations (like “Koko” vs “Coco”) can trigger rejection
  • Unregistered brands using your name can oppose you

💡 Pro Tip: A deep IP Australia search (and sometimes international checks) is a must.

Mistake 3: Filing in the Wrong Class (or Not Enough Classes) 

This one hurts.

Trademarks are divided into 45 classes of goods and services. 
If you file in the wrong class, or miss a future class, you’re exposed.

Example:

  • Sarah starts selling t-shirts → files in Class 25 (clothing)
  • Two years later, she launches a skincare range under the same name
  • A cosmetics brand hits her with a cease & desist

Sarah thought she was “protected,” but her trademark didn’t cover skincare.

Result? Costly rebrand + lost momentum.

Mistake 4: Choosing a Weak or Generic Name 

Your trademark only works if it’s distinctive.

If your name is…

  • A generic description (“The Candle Company”)
  • A common industry phrase (“Social Media Tips”)
  • A geographic location (“Sydney Marketing”)

…it will likely be rejected.

Strong brands are:

✅ Distinctive

✅ Memorable

✅ Ownable

 

Mistake 5: Waiting Too Long to File 

So many founders say:

“I’ll trademark later, when I’m bigger.”

But here’s the thing:

Trademark law is first-to-file, not first-to-market.

I’ve seen founders build 2–3 years of brand equity… only to be locked out when someone else files first.

And the rebrand? 💸 Often $10,000+ in lost revenue, ads, and materials.

Mistake 6: Ignoring Opposition & Adverse Reports 

DIYers often panic when they get an adverse report or opposition notice.

They assume:  “I guess I can’t have a trademark” and give up.

But there are often ways to overcome objections:

  • Consent Agreements: Negotiating with another brand to coexist
  • Non-Use Removal: Kicking dormant marks off the register
  • Evidence of Prior Use: Proving you were in the market first

Without expert guidance, most founders walk away, and leave their brand exposed.

 

Mistake 7: Filing and Forgetting 

Even if you get the trademark, your job isn’t done.

You still need to:

  • Monitor for infringements
  • Maintain your registration
  • Act quickly if someone copies you

If you don’t, you could lose your rights or miss your window to enforce them. 

Case Study: Sarah’s $15K Rebrand Nightmare 

Meet Sarah, an online course creator. 

She DIY’d her trademark, did a quick search, and felt safe. 
But she missed a key class and didn’t realise a competitor was about to file. 

Three months later…

🚨 Cease & Desist letter.

She had to:

  • Rebrand her entire course and website
  • Stop running paid ads mid-launch
  • Spend $15K+ on design, printing, and legal

All because she tried to save a few hundred dollars on filing fees. 

How to Avoid These Costly Mistakes 

Here’s the good news:

Trademarking doesn’t have to be complicated, scary, or expensive.

With the right system, you can:

✅ Choose the right name and classes

✅ File with confidence

✅ Protect your brand and grow without fear

That’s why I created Tricks of the Trademark®.

It’s the shortcut to filing your trademark without the $2K+ lawyer bill.

You’ll get:

  • 6 lawyer-backed modules to walk you step by step
  • Marki™, our AI-powered trademark assistant, to guide you 24/7
  • 1-month in The Legally Legit Lounge®, where you can ask unlimited questions
  • Templates + checklists to file right the first time

💥 All for just $299 during our early bird launch.

Don’t let a $15K rebrand happen to you.

👉 Click here to learn more about the course and secure your brand.

 

How to Register a Trademark in Australia

 

 

 

 

***Disclaimer. Please read!!***

This article is for general information purposes only and should be used solely as general guidance. It does not and is not intended to represent legal advice or other professional advice.

All rights reserved. © Foundd Legal Pty Ltd

 


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