The company name of a company is one of the most powerful brand values. And as with other corporate goods, it is advisable to protect them. If a business owner doesn’t do this, they run the risk of another company using the name. This can potentially confuse customers and create legal problems.
Formally registering a company as an LLC or corporation provides some protection to the name. However, it’s not as extensive as the protection a brand offers.
How Registering as an LLC or Company Protect a Company Name
When someone registers their LLC or corporation by submitting statutes or articles of association to the state, the company’s corporate name is protected in that state. That means the state doesn’t allow other LLCs or companies to use the name (although it may allow if the nature of the business and industry are so different that the public is not confused).
While this provides some level of security, there is still a chance a company operating as a sole proprietorship or partnership could use the name in the state. While these business owners cannot register the name as an LLC or a corporation, they can still file it as a DBA (“Doing Business As”, also known as a “fictitious name”). So they could potentially offer similar products and services in the market – even within the same county or city.
Registering as an LLC or a corporation does not prevent other companies in the other 49 states from using the name. For example, suppose an entrepreneur registers his business name “Elsa’s Gift Emporium” for an LLC in Illinois. In this case, little prevents another Tennessee entrepreneur from forming an LLC or a business by that name.
Country-level company name protection may or may not be sufficient for a company. This depends on whether the business owner plans to expand the company to other states and the potential impact if another company uses the same name. For example, if someone opens a pet care business that serves customers within 30 miles of their home office, they probably don’t care if another pet care company in another state uses the same name.
But what if you want to expand your business to other states or sell products online and compete with other companies in the US that also sell online? These are examples of scenarios where it is worth investigating federal trademark protection.
Advantages of branding a company name
The US Patent and Trademark Office (USPTO), the federal agency that grants trademarks, states: “A trademark or service mark includes any word, name, symbol, device, or combination that is used to identify and differentiate the mark or to be used goods / services of a seller or provider of those of others and stating the source of the goods / services. “In short, brands help differentiate brands from their competitors.
What is the difference between a “brand” and a “service mark”? In essence, they are the same except that a brand identifies the source of the goods while a service mark identifies the source of the services. The USPTO often uses the term “trademark” when referring to either trademarks or service marks.
If the USPTO approves a company name as a registered trademark, the state and federal owner has exclusive rights to use the name. A trademark prevents others from selling similar goods and services in the United States under that company name.
The main purpose of brands is to avoid confusion in the market. Therefore, protection only applies to a specific category of goods and services. For example, if someone branded their photo studio “Best of Times”, another entrepreneur is likely to be allowed to open a restaurant using the same name.
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How do you register a trademark?
Before filing an application with the USPTO, be sure to search the internet and federal and state trademark databases to ensure that no other company is legally claiming the name. In addition to the USPTO and state websites, there are other tools available online for company name and trademark searches. A trademark attorney can also help verify that the trademark is available and likely to be approved by the USPTO.
The USPTO requires that trademark applications be filed online through the Trademark Electronic Application System (TEAS), which requires an account to be set up with USPTO.gov. Sign-up costs depend on which sign-up option the business owner chooses:
- TEAS Plus: $ 225 per class of goods / services
- TEAS Standard: $ 275 per class of goods / services
Business owners may consider asking their attorney to prepare and file the application on their behalf, or enlist the help of an online business document filing company to ensure the form is fully completed and submitted.
The time it takes to get a trademark approved can range from a year to several years depending on the complexity of the trademark and any issues that arise during the USPTO’s review process.
Once a trademark is approved, it is valid for 10 years. As long as the owner meets all legal requirements, a trademark can potentially be renewed for an unlimited number of consecutive 10-year periods.
The USPTO website states, “Every time you use your trademark, it’s best to use a name with it. If registered, use a ® after the mark. If not already registered, use TM for goods or SM for services to indicate that you have adopted this as a trademark or service mark, whether or not you have filed an application with the USPTO. “
By using TM or SM, you are advising other business owners that you are indicating ownership of the wording, symbol or design. However, without an official trademark registration for the company name with the USPTO, you may have difficulty taking legal action against another party if they use a name that is the same or very similar.
Where can I get more information and help about trademarks?
To learn more about trademarks, we recommend referring to the USPTO’s digital brochure, which has basic trademark facts, considerations for choosing a trademark, the filing process, fees, and more. Also, ask a licensed attorney to determine if your desired trademark can be legally protected and to understand how to maintain, monitor, and protect your trademark.
Your company name is an important part of your brand. So take the protection of this valuable marketing asset seriously.
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