Business Names vs. Trademarks: Knowing the Difference

Fork in the road or highway business metaphor representing the concept of a strategic dilemma choosing the right direction to go when facing two eqaual or similar options.

A business must be cognizant of both protecting its name identity and maintaining the exclusive nature of its trademarks. But these are two separate aspects of business ownership and must be handled through different legal mechanisms. Below is an overview of the processes for registering your business name and filing for trademark protection.

Registration of business name. A trade name, or “doing business as” name, is any name you give your company that is not your personal name. The California Secretary of State searches business names within the state to ensure that no other limited liability company (LLC) or corporation is using the name that you have proposed for your new business. Each state has its own standards for determining the degree of similarity a new name can bear to an existing name. In general, the name should not be deceptively similar to a current name or mislead the public. After your LLC or corporation name is approved, no other business that seeks to form an LCC or corporation will be permitted to use that name in California. The protection of your business name upon approval applies only to the state in which you formed your business. Thus, a business in a different state can utilize the name that you registered for in your home state. In addition, a partnership or sole proprietorship within your own state is not barred from opening a business under a registered name.

Trademark protection. If your business has a word, phrase or symbol that identifies the source of the product or service that your company sells, then it is important to obtain trademark protection. Trademarks are granted by the U.S. Patent and Trademark Office and provide the trademark owner with the exclusive rights to that trademark in all states. Trademark ownership encompasses the right to prevent another entity from using the protected mark in any capacity. These rights can be enforced on both the state and federal levels and continue indefinitely so long as the trademark owner adheres to the requirements for renewal. A business owner who wants to file for trademark protection should conduct a search to determine whether there is a pending application for, or another entity currently using, the same or a substantially similar mark. Once approved, trademark protection offers its owners exclusive and comprehensive rights that extend beyond state-specific registration.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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Business Names vs. Trademarks: Knowing the Difference

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