Is Your Company Name Legal?

Naming A Company

If you're naming a company, you should consider the trademark implications of your choice.

Search

At a minimum, check the Internet and the USPTO database of registered trademarks, to ensure that you don't pick a name that's already been registered by another company for a similar type of good or service -- this could cause confusion to consumers.

If you really want to be sure, you should have an attorney do a full search; as trademarks do not have to be registered, other companies may have priority rights over marks that aren't listed in the database. If you do pick a mark that's close to another company's mark, be aware that you may lose the ability to use that name at some point in the future.

Trade Names

The name of a company is a "trade name" -- the name under which a company does business. A trade name can be the legal name of the corporate entity, and it can also be the fictitious or assumed name the company uses to do business in a state.

Both the actual company name and the fictitious business name are trade names. Neither name, by itself, is a trade or service mark.

Relationship Between Trade Mark and Trade Name

Although the name of a company, in and of itself, is not a trademark, the name of a company may become a trademark if the company decides to use the same name in association with the sale of a good or service.

The USPTO will not register mere trade names. If the company decides to call a good or service by the same name, then trademark rights can overlap with trade name rights. For example, the Coca Cola Corporation has the same name as its major product, and therefore both the company name and product name enjoy trademark protection.

Trade Name Registration

If you choose to have an attorney help you choose your company name with a full trademark search, make sure that search also includes a review of state trade name registrations for similar names.

Trade name registrations are the state databases of company names that have been registered to do business in each state, including corporations and fictitious business name registrations. It's wise to request inclusion of these names in your full trademark search.

One you've selected your name and used it to incorporate or form your corporate entity, you'll also need to register to do business in any state in which you have an office -- in addition to the state in which you formed your entity.

If you discover that another company already uses your name in that state, you may register to use another name in that state only -- a fictitious or assumed name, sometimes called a "dba" or "doing business as" name.

Conclusion

Naming a company is a complex and thoughtful decision. In fact, smart naming may require more research than you would complete if you were naming a child. However, with careful thought, you can lower your risks and choose wisely.

Readers are cautioned not to rely on this article as legal advice as it is no substitution for a consultation with an attorney in your state. Based on jurisdiction and time, the law varies and changes.