A business name is a company's officially registered name, while a trademark is a form of legal protection for that name, preventing it from being used by another business. If you're wondering how to trademark a business name, the process involves registering it with the United States Patent and Trademark Office (USPTO), giving you nationwide protection.
A business must register the name with the Secretary of State and, as long as it is distinguishable from any other business name within the state, the business will be recognized under that business name and no other business can use that name within that one state. However, knowing how to trademark a business name can help secure broader protection. A trademark on the other hand is not a name, but property. A trademark is generally used to brand a certain good or service and has a value in of itself. For example, imagine a well-built car with no markings.
What is a Trademark?
A trademark is a unique name, symbol, or design that represents your brand and sets it apart from others in the market. It helps protect your brand identity, giving you exclusive rights to use it in connection with your products or services, preventing others from using anything similar.
What is a Business Name?
A business name is the official name under which your company operates. It's registered with the state and provides a legal identity for your business. However, a business name alone doesn't offer protection from other companies using a similar name unless it's also trademarked.
Difference Between a Business Name and Trademark
| Business Name | Trademark | |
|---|---|---|
| Purpose | Legal identity for a business entity | Protects brand identity for goods/services |
| Registration | Registered with state authorities | Registered with USPTO (United States Patent and Trademark Office) |
| Scope of Protection | Limited to state registration and does not prevent others from using the same name in different sectors | Offers nationwide protection for the specific goods/services |
| Usage Requirement | Required to operate a business | Required for legal protection of the brand |
| Enforcement | Limited legal protection within state jurisdiction | Strong legal protection against unauthorized use |
Is Registering a Business Name Different From Filing a Trademark?
There's a short answer and a long answer to this question. Let's start with the short answer. The business name is simply that, a name, a way to identify a business, entity, or individual. Due to the potential value of a trademark and the inherent property rights entailed within a trademark, the application for a trademark is much more complicated. Trademarks are registered under the federal government through an application process that can last over six months. The property rights of trademarks can be enforced by both the federal government and by the states.
Now for the long answer. The business name is limited to the state. States have differing laws on how different the name must be from other business names within the state. Some states have very loose laws and say the name has to be unique and easy to identify (e.g., filing of "Transamerica Airlines, Inc." was acceptable even though the name "Trans-Americas Airlines, Inc." was already in existence).
Other states impose strict guidelines that restrict names from being "deceptively similar" to prevent unfair competition (e.g., filing of "Transamerica Airlines, Inc." would be too similar to "Trans-Americas Airlines, Inc." that would confuse consumers on which corporation is which). However, the business name does not need to be different from business names in other states. In fact, a corporation can do business in another state where its business name is being used by another company by registering for a "dba" (doing business as) or Assumed Business Name or trade name (depending on the state).
Most important to the distinction between a business name and trademark is the fact that a corporation can conduct business with the same name of another existing business. Registering the business name with the Secretary of State merely protects that name from being used by another business within that state, but not in another state.
Trademarks are Owned.
Trademarks, on the other hand, are property. Similar to any other tangible property, the owner of a trademark has the exclusive rights to the trademark and can prevent another individual from using the trademark. A trademark is also not limited to a business name but can also include a phrase, logo, symbol, design, image, or a combination of these elements.
As mentioned above, this mark cannot be similar to any other trademark. A mark can use the same words as another mark, as long as the marks are not deceptively similar. By simply changing the font, the font color, or by adding a different image, the mark may be trademarked by the federal government (e.g., compare Apple, Inc. with Apple Corps Ltd.). However, the trademark cannot tarnish the value of another trademark or blur the consumer's perception of the trademark with another.
Because trademarks include exclusive rights to the mark, the application process is more complicated. After applying to the U.S. Patent and Trademark Office, the trademark undergoes an examination period that can last over six months. Once all procedural and substantive issues are resolved, the trademark is then placed in a 30-day waiting period where third-parties have the opportunity to challenge the trademark through an Opposition Proceeding. If no challenge to the trademark is substantiated, the trademark is officially registered. Unlike copyrights and patents, trademarks have an unlimited lifespan.
Registering a Business Name vs. Trademark
While registering a business name gives your company legal standing, filing a trademark protects your brand identity. Both are important but serve different purposes for your business.
How to File for Business Name Registration
To register a business name, you'll need to check your state's requirements and file the necessary paperwork, often with the Secretary of State's office. This process ensures that your business name is legally recognized and no one else in the state can use it. It doesn't, however, provide the same nationwide protection as a trademark.
How to Choose a Registered Business Name
When selecting a business name, it's important to choose something unique and descriptive of your business. Conduct a thorough search to ensure the name isn't already taken by another entity. Keep in mind that registering the name at the state level doesn't stop others in different states from using it, unless you trademark it.
How to File for Trademark Registration
Filing for a trademark involves applying with the United States Patent and Trademark Office (USPTO). This process includes a search to make sure your mark is unique and not already in use. Once registered, the trademark provides nationwide protection for your brand, allowing you to take legal action against anyone using something too similar to your mark.
How Do I Get a Tax ID for My Business?
Generally, businesses need a Federal Tax ID number or an Employer Identification Number (EIN) to legally conduct business. Whether a sole proprietor or a corporation, an EIN is necessary. This number is used to identify a business entity for tax purposes and is fairly simple to obtain. The IRS supplies multiple ways to apply for an EIN. The traditional method is the fill out Form SS-4 (can be downloaded from www.irs.gov Opens a new window ) and mail or fax it directly to the IRS.
The IRS has also supplied an online application Opens a new window that asks the applicant a series of questions regarding his/her business. This application must be completed within one session so it is important that an applicant has all necessary information available at the time of application.
A third party is allowed to apply for an EIN, however that third party must be authorized by the business. If a sole proprietorship or general partnership, the sole proprietor or general partnership must authorize the third party to apply for an EIN. If a corporation, the corporation (and not simply a shareholder) must authorize the third party to apply for an EIN.
Frequently Asked Questions
Should I Trademark My Business Name?
Yes, if you want to protect your brand nationwide. Learning how to trademark a business name will help secure exclusive rights to your name.
What Is the Difference Between a Trademark and a Business Name?
A business name is your official name registered with the state, while a trademark protects your brand from being used by others in the market.
Is a Trademark Different From an LLC Name?
Yes, an LLC name identifies your business legally, but a trademark protects your brand and products from unauthorized use.
Does My Business Need a Trademark?
Trademarks offer protection if your brand name is valuable and you'd like to prevent others from using a similar name.
What Are the Limitations of a Business Trademark?
A trademark only covers the goods and services for which it's registered and must be renewed periodically to maintain protection.
What Do I Do if Someone Is Using My Trademark?
If someone uses your trademark, you can enforce your rights legally through a cease and desist letter or legal action.
Can I Trademark My Company's Internet Domain Name?
Yes, if the domain name is used to identify your brand, you can trademark it for additional protection.
Can I Trademark My Company Slogan?
Yes, slogans that represent your brand and are unique can be trademarked to protect them from unauthorized use.
Can I Make Changes to a Trademark Once It Has Been Filed?
Changes to a registered trademark can be made, but only minor modifications are allowed without filing a new application.
Do I Need to Trademark My Business Name?
Trademarking your business name isn't required, but it offers stronger protection than just registering it with the state.
How Much Does It Cost to Trademark a Name?
The cost to trademark a name varies, but typically starts at a few hundred dollars when filing with the USPTO.
