Guiding Rights Newsletter 1:3 -"The Billion Dollar Cookie"

The billion dollar cookie is a story about the importance of brands.

How could a cookie be worth a billion dollars?

Join me on a trip to New York to learn how.

It's Tuesday morning, June 6, 1989. Picture yourself in a law firm conference room overlooking Manhattan. You're Henry Kravitz, the leader of the investment firm KKR, which recently captured massive public attention by completing a leveraged buyout of R.J.R. Nabisco, for $25 billion. You're standing in that conference room next to your counterpart from BSN, the largest food company in Europe, who is buying the Nabisco European cookie, cracker and peanut business.

The sun rises behind the Chrysler building. Attorneys and bankers buzz around the room finishing last minute details. A waiter wearing a tuxedo wheels in a cart of champagne. Someone cups his hand over the mouthpiece of a telephone and announces: "The money has moved." Champagne corks pop.

And then you're presented with a ceremonial check for $2.5 billion.

It's a lot of money for snack food. But that's the key. BSN already had the knowledge and means to sell those products. What BSN really wanted were the famous Nabisco brands: OREO cookies, RITZ crackers, PLANTERS peanuts.

As a business leader - entrepreneur, business owner, CEO - you have a choice. Which do you want to be? A seller of commodity products or services with little added value? Or the business with the billion dollar cookie? The difference is the value created by developing and protecting your brand.

Here are five simple, low-cost steps to start building your own valuable brand.

1. Select a strong, distinctive name. Arbitrary and coined terms are stronger brands. Think GOOGLE and EXXON, not AMERICAN, NATIONAL or UNITED.

2. Check Trademark Office records and online to avoid terms already used by others for similar goods. Avoid entering a crowded field of similar names. Try to be unique in your field. Trademark office records can be searched at www.uspto.gov.

3. Secure a matching domain name, especially .com domains. Check what's available at a registrar's site, including www.nsi.com and www.godaddy.com.

4. Obtain trademark registration. The benefits of U.S. trademark registration include nationwide rights effective back to the filing date. The cost is $325 to file online plus legal fees, if you use outside counsel. Learn how at www.uspto.gov. The cost is low compared to the much higher cost of proving your rights in court without a registration.

5. Police your rights. Engage in an ongoing correspondence campaign to stop infringers early and to maintain the distinctiveness of your mark by giving notice of your rights. The cost of ongoing maintenance and enforcement is low compared to the value created and the savings obtained by avoiding expensive lawsuits after an infringer becomes established as a successful business.

What is the billion dollar cookie in your industry? Chances are it is a business with a strong brand, and a company that recognizes and protects the value of the brand. Take steps today to increase the value of your brand. Create your own billion dollar cookie. For more ideas on how, visit www.GuidingRights.com

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By Mark V.B. Partridge, author, speaker and attorney with more than 25 years of experience helping major corporations, business owners and creative professionals protect their brands. Learn more here