Hi
Since you are an animation based company having created Cartoon characters, you should apply for copy right for protection to ensure that your cartoon characters are not reproduced with out your permission in literary, dramatic, musical, cinematography etc and that you are protected till such time the copyright exists.
However since you are also planning for merchandise, you should also get your work protected under trade mark act also . Registration under trademark protects a name, word, slogan, symbol, design, and/or image identifying a business or brand and distinguishing it from others in the same field.
Also that registering a trademark enhances the rights of a person by providing legal evidence and public notice of ownership. It is proof enough of a nationwide exclusive right to the mark and allows the holder to sue an infringer if the case calls for it. Registered trademarks can use the ® symbol. Though a trademark is valid for an unlimited period of time, it must be renewed every 10 years.
Some additional differences between a copyright and a trademark are as follows:
1. The purpose of a copyright is to protect works of authorship as fixed in a tangible form of expression. Thus, copyright covers: a) works of art (2 or 3 dimensional), b) photos, pictures, graphic designs, drawings and other forms of images; c) songs, music and sound recordings of all kinds; d) books, manuscripts, publications and other written works; and e) plays, movies, shows, and other performance arts.
2. The purpose of a trademark is to protect words, phrases and logos used in federally regulated commerce to identify the source of goods and/or services.
3. There may be occasions when both copyright and trademark protection are desired with respect to the same business endeavor. For example, a marketing campaign for a new product may introduce a new slogan for use with the product, which also appears in advertisements for the product. However, copyright and trademark protection will cover different things. The advertisement’s text and graphics, as published in a particular vehicle, will be covered by copyright – but this will not protect the slogan as such. The slogan may be protected by trademark law, but this will not cover the rest of the advertisement. If you want both forms of protection, you will have to perform both types of registration.
4. If you are interested in protecting a title, slogan, or other short word phrase, generally you want a trademark. Copyright law does not protect a bare phrase, slogan, or trade name.
5. Whether an image should be protected by trademark or copyright law depends on whether its use is intended to identify the source of goods or services. If an image is used temporarily in an ad campaign, it generally is not the type of thing intended to be protected as a logo.
6. The registration processes of copyright and trademark are entirely different. For copyright, the filing fee is small, the time to obtain registration is relatively short, and examination by the Copyright Office is limited to ensuring that the registration application is properly completed and suitable copies are attached. For trademark, the filing fee is more substantial, the time to obtain registration is much longer, and examination by the Trademark Office includes a substantive review of potentially conflicting marks which are found to be confusingly similar. While copyright registration is primarily an administrative process, trademark registration is very much an adversarial process.
7. Copyright law provides for compulsory licensing and royalty payments – there is no analogous concept in trademark law. Plus, the tests and definition of infringement are considerably different under copyright law and trademark law.
Hope this information is useful.