Imagine launching your dream widget business. You’ve meticulously crafted a memorable, original name, ensuring no one else has claimed it. You’ve invested heavily in marketing and signage, and customers are already raving about your unique brand. You love your business name.
But what if, shortly after opening, you discover a competitor down the street using the exact same name for a similar widget venture? Customers are confused, and your business suffers as potential clients mistakenly patronize your rival.
This nightmare scenario is avoidable with proper corporate name protection.
The first step is registering your corporation’s name. Procedures vary by state, but generally involve submitting paperwork and a fee to the Secretary of State’s office. This prevents other businesses from incorporating under the same name within that state and legitimizes your business as a separate legal entity. It also provides evidence of commercial use when you trademark your name. However, businesses can incorporate in any state, so state registration offers only partial protection.
For nationwide protection, register your business name as a trademark or service mark with the United States Patent and Trademark Office (USPTO). This provides public notice of your claim and allows you to pursue legal action in federal courts to protect your brand. Applications are available on the USPTO website (www.uspto.gov) and can be filed online or by mail. Processing can take over a year, so apply as early as possible. You can check your application status online.
You don’t have to wait for full trademark registration to assert your rights. Use the “TM” symbol after your business name in marketing materials to indicate your claim. Once your trademark is federally registered, use the registered trademark symbol, “®,” for maximum protection.
After registration, you must file periodic Affidavits of Use with the USPTO to prove continued use of the trademark. Abandoning the mark for an extended period can result in its loss.
Finally, actively “police” your trademark. Monitor online and industry activity for unauthorized use of your name. A cease-and-desist letter can often resolve infringement issues. If necessary, litigation may be required.
Protecting your business name from the outset is crucial. It prevents customer confusion and safeguards the goodwill associated with your brand.