One of the first decisions made by new entrepreneurs is “What should I say to my business?” Most product equity is built around the business name, so it is important to protect that valuable asset for sale. During the presentation to the financial experts, I discussed the trademarks against registered trademarks and the differences in protection and peace of mind they offer. I believe the more information I share can help you as well, as you explore your options for protecting your business name. So, lets us know more about Registered Name Vs Trademark.
Let’s start with the basics
Business Name – That’s the name of the business. The name the company calls itself and the public is aware of it. Trademark – As defined by the U.S. ” A trademark may also be a combination of the above-mentioned items, such as the logo associated with the business name.
Business Name Basics
If a company with a fixed liability (LLC) or C corporation use registration as a business in the state, the business name automatically acquires protection in that case after the country has approved corporate articles (LLC) or business articles (organization). The state will not allow other LLCs or organizations to use the registered name in their area.
The laws of the countries have different guidelines on how a name should be different from other business names. The purpose of limiting the use of the same name is to reduce the same misleading business names from causing confusion in the marketplace and creating unfair competition. Some provinces will allow the same or closer names if the businesses they use are in different industries or provide very different services and products.
Business Name Limits
Remember that registering a business only prohibits other LLCs and companies from using the business name. Sole proprietorships and government partnerships may use the name legally and even include it as a DBA (false name); they simply will not be allowed to form an organization or LLC under the name. Similarly, the exact name of the LLC cannot be used by another LLC in the province. However, the company may be allowed to use the name.
Also, protecting the name of a business name does not prevent another business from establishing or establishing an LLC; using the name in the provinces where the existing business owners have not registered their company.
Here is an example to consider:
Suppose Jane registered Epiphany Salon with Day Spa, LLC in Ohio. The state will not allow another LLC to register that name directly on its site.
However, John can register Epiphany Salon with Day Spa, Inc. in Ohio; and Debbie can register Epiphany Salon with Day Spa, LLC in Kentucky.
Six Steps to Registering a Business Name
Understand Business Name Limits
Each country has its own set of rules regarding what is allowed and what is not allowed in business names.
Many states will not allow a business to:
- Use a fake name similar to another recorded business name.
- So, Use a business name that misleads the public into believing that the company offers something they do not provide.
- Use derivatives or other types of forbidden words (for example; adding “ing” at the end of a forbidden word or using plurals, etc.).
- Enter a word that means professional licensing (such as “Engineer,” “Attorney,” or “CPA”); if the business does not have a valid license.
- Include business identifiers such as “Incorporated,” “Corporation,” “Inc.,” “Limited Liability Company,” or “LLC” as part of the name of the entity is not a joint venture or LLC. Similarly, a merged business or LLC must include “Company,”; “Incorporated,” “Limited,” or abbreviated (e.g., Inc., LLC) as part of its name.
- Use a word that means a government or municipal unit (such as a district, city, or region) if not.
- So, Use a name that means the company is a state-owned enterprise (e.g., Federal, United States, etc.).
- Use terms such as “bank,” “trust,” or “insurance” unless you are legally authorized to do so by the appropriate government agency.
Here are some tips to help you break the rules in Registered Name Vs Trademark:
Check with the Office of the Secretary of State for business rules and restrictions. Entrepreneurs can ensure that the business names they wish to use will not violate the rules by visiting the country’s government website and contacting the relevant country department for more information.
Perform a company name search. Even if the required name does not contain the banned words and meets all the requirements, an entity will probably not be able to use it if another company selling the same products or services already uses the name. Searching for a business name will help identify any existing businesses that use the name.
Perform a trademark search. Companies intending to conduct business in more than one region should consider branding. That will expose any existing claims (registered trademarks and applications) on behalf of the state.
Ask for legal advice to make sure you cover all the basics. To get legal guidance on starting a business, entrepreneurs should seek the advice of a lawyer or other qualified professional. While searching for a business name and trademark gives the first peace of mind that a name is available, it is helpful for an expert to check the availability and functionality of a business name before applying for business registration.
Think Business Names
Spend time and energy deciding on a business name because it is one of the most important marketing assets and brands that a company has to distinguish itself from its competitors. Consider producing a list of perhaps a dozen words. Having a variety of options to help will improve your chances of having at least one name available for registration. Also, I recommend that business owners give themselves a few days before limiting their selection to the ones that will best suit the business. A word that seems wise and appropriate just outside the gate may sound foolish after much thought.
Some additional brainstorming tips:
Dating other people. Show them the list and let them rank in the top five. Avoid unusual puns and innuendos. This will help to avoid mistakes like naming a construction company like “Rod’s Erections” or a beauty salon called “Get Nailed.”
Think twice before using a personal or city name. Incorporating a sense of place may work well for a business that is satisfied with a limited history. However, it may not be a good long-term option for a company that wants to grow and expand. For example, “Walton’s” 5 & 10 “eventually became” Walmart, “and” Dayton Dry Goods Company “is now Target.
Choose a descriptive word instead of the usual one. Sometimes just adding an appropriate word to a keyword will help make it stand out. For example, the term “Speedy” for digital device repair shops will more clearly represent the business when it becomes “Speedy Electronics” or “Speedy Digital Repair.” Adding eligibility allows entrepreneurs to choose other options once their preferred name has been taken. Be short and memorable rather than tall. Coke. Pepsi. Both companies have dropped the “cola” identifier in their names over time. If the official name is long (Coca-Cola Bottling Company, Inc.), installing a DBA for a short version of the company name can help make branding success easier.
Choose Your Business Structure
Many factors influence what type of business will work best for a company and its owners:
- Where the company will conduct business
- Owners desire to limit their personal business debt
- That the business owner will have a partner or investor
- Company income and deductions
- Desire to reduce self-employment taxes
- Business terms
- Owners’ tolerance of compliance laws
- Registration and administration costs
Businesses are not required to register their trademarks with the USPTO.
If the company creates a logo or name and wants to transfer the use of the logo only, it can attach a TM logo, which provides general legal rights. In doing so, the mark is considered an unregistered trademark.
While a company is waiting for the USPTO to approve its trademark application, it may use a standard trademark (™) to indicate to other companies that a trademark is being traded.
However, relying on an official trademark as the only way to protect a product comes with risks. So, if you like this article on Registered Name Vs Trademark please share. Also, send it to the one who needs to know Registered Name Vs Trademark more. More blogs will be coming in the Loan section. Data are from Corpnet.