What is a trademark?

A trademark is defined as a symbol, design, or expression that identifies and distinguishes the source of a product or service of one party from those of others. It provides legal protection to businesses by preventing other entities from using a similar mark that could confuse customers. This makes it a crucial asset for branding and marketing, as it encapsulates the reputation and quality associated with a business's offerings.

In contrast, a written agreement between two companies refers to contracts, which do not inherently provide distinction or identification for products or services. An official license to operate a business relates to regulatory compliance, which is unrelated to the concept of trademarks. Finally, a financial balance sheet item pertains to the accounting records reflecting a company’s financial position, which does not concern the branding aspect of a business. Therefore, recognizing a trademark as a symbol or design that exclusively belongs to a business clarifies its unique role in commerce.