How Does A Trademark Protect Your Business Name?

A company's business name is one of its most powerful branding assets, and it should be protected just like any other business asset.

If a business owner fails to protect their business name, they could face the risk of another company using the name, which could potentially confuse customers and create legal problems. 

How Registering as an LLC or Corporation Protects a Business Name 

When someone registers their LLC or corporation by submitting Articles of Organization or Articles of Incorporation to the state, the company's business name is protected in the state where they submitted the article. This means the state will not allow other businesses to use the name (although it may allow it if the type of business and industry are different enough so that it won't confuse the public). 

That should bring about some calmness to business owners, but there's still a chance that a business operating as a sole proprietorship or partnership might still use the name in the state. Even though those business owners will not be able to register the name as an LLC or corporation, they can still file it as a DBA (“Doing Business As,” also known as a “fictitious name”). So, they could conceivably offer similar products and services within the market, even if they are in the same county or city. 

Keep in mind that registering as an LLC or corporation won’t prevent other businesses who operate in the other 49 states from using the name. For example, suppose an entrepreneur registers their business name, "Lauren’s Shop of Wonders," for an LLC in Illinois. There is not a lot to prevent another entrepreneur in Tennessee from establishing an LLC or corporation with that same name. 

The business name protection at the state level may be enough protection for a company, or it may not be. It really depends on whether the business owner plans to expand the company into other states and what the potential effects could be if another company were to use the same name. To give an example, if someone starts a pet-sitting business serving customers within a 30-mile radius of their main office, they probably won’t pay attention if another pet-sitting company in another state uses the same name. 

However, what if you have your sight is set on expanding your business into other states or want to put your business online and compete with other companies across the country who also sell their products online? These are some scenarios when a federal trademark protection is worth looking at. 

Advantages of Trademarking a Business Name 

The U.S. Patent and Trademark Office (USPTO) explains that “a trademark or service mark includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services.” To sum it up, the main goal of trademarks is to help differentiate brands from their competitors. 

What’s the difference between a “trademark” and a “service mark”? Basically, they are the same, the only difference is that a trademark identifies the source of goods, while a service mark identifies the source of services. The USPTO often uses the term “trademark” when alluding to either trademarks or service marks. 

When the USPTO approves a business name as a registered trademark, the owner has exclusive rights—at the state and federal level—to use the name. A trademark will prevent anyone else from using that name to sell their brand within the United States. 

The main function of trademarks is to prevent confusion in the marketplace, so the protection applies to only a specific category of goods and services.

How do You Apply for a Trademark? 

Before submitting an application to the USPTO, it's important to search the Internet, as well as federal and state trademark databases to make sure that no other businesses has claimed the name already. In addition to the USPTO and states' websites, other business name search and trademark search tools are available online. You can also hire a trademark attorney who can help verify that the mark is available and likely to be approved by the USPTO. 

The USPTO requires that trademark applications be filed online using the Trademark Electronic Application System (TEAS), which requires setting up an account at USPTO.gov. Filing costs depend on which filing option the business owner chooses: 

• TEAS Plus: $225 per class of goods/services 
• TEAS Standard: $275 per class of goods/services 

Entrepreneurs may want to think about asking their attorney to prepare and file the application on their behalf or get the help of an online business document filing company to make sure that the form gets completed and submitted properly. 

The wait time to have a trademark approved may range from almost one year to even lasting several years. It depends on the mark's complexity and any problems that arise during the USPTO's review process. 

Once the trademark has received approval from the USPTO, it will be effective for 10 years. So as long as its owner complies with all legal requirements, a trademark can potentially be renewed for an unlimited number of consecutive 10-year periods. 

According to the USPTO website, “Each time you use your mark, it is best to use a designation with it. If registered, use an ® after the mark. If not yet registered, use TM for goods or SM for services, to indicate that you have adopted this as a trademark or service mark, respectively, regardless of whether you have filed an application with the USPTO.” 

Using TM or SM shows other business owners that you're claiming ownership of the wording, symbol, or design. Although, without officially registering to trademark your business name with the USPTO, you may have may find it hard attempting to enact legal action against another party if they use the same name or a name that is similar. 

Where to Turn for More Information and Help with Trademarks? 

If you want to learn more about trademarks, look at the USPTO’s digital booklet that contains basic facts about trademarks, considerations for selecting a mark, the application process, fees, and much more.

You should also consider talking to a licensed attorney to help you determine if your desired mark can be legally protected and guide you in understanding how to maintain, monitor, and protect your mark. 

Your business name is a vital component of your brand, so make sure that you take all the necessary assets to protect this asset. 

Interested in Working With Us?

If you need any help regarding your business or other legal matters please reach out to us directly here and schedule a call with one of our paralegals on our scheduling page here.