Starting a new business can be overwhelming, exciting, and confusing at the same time. No matter the industry, all new companies have to deal with financing, advertising, organization, ownership structure, etc. One area that many neglect is ensuring that the company name is actually available.
There are more than 16 million trade names in use in the United States. Similar names matter, whether they are similar in sound, appearance, or meaning. Similar names in related classes, distribution channels, and customers also matter. You are affected by the use of Common Law (14 million), State Trademarks (500,000) and Federal Trademarks (2 million).
Research is needed to ensure that your business name is legally available and it is best to do this before: opening, expanding, incorporating or designing your logo. After all, why spend all that time, effort, and money on a name that already belongs somewhere else?
These are the 2 most important reasons why research is a must:
* It’s his responsability
It is up to each business owner to ensure that the name they are using does not infringe someone else’s federal or state registered trademark, as well as any prior common law rights. While some government agencies (eg, County Clerks, Secretary of State, US Patent and Trademark Office) will conduct their own investigation, their scope is quite limited.
For example, when filing a federal trademark, the US Patent and Trademark Office (hereafter referred to as the USPTO) performs a search of the federal trademark registry, typically 6-8 months after filing. started the process. However, this search does NOT include state trademark or common law databases such as incorporations, fictitious/DBA names, company directories, domain names, product advertisements, etc.
* It is for your benefit
In an ever-expanding market, competition between companies has become fiercer. Overcoming the hurdle of reaching consumers is only a small step. Now, once the first contact has been made, how to get a consumer to buy and/or come back to you is a bigger hurdle. Brand recognition will be a major asset for you in this area.
Let’s look at it from the point of view of the buying habits of most consumers: multiple visits to different stores, sites, etc. to compare and contrast. Making sure that your name is legally available means that customers will not confuse your products/services with the products/services of another party and therefore ensures that when customers search for your business by name, they will find you and not to your competitor.
Therefore, we have established that thorough research of your company name is a must. The next question is how to do it?
Preliminary research is a great place to start, but keep in mind that any free resources available online are just scratching the surface. Extensive research involves searching the federal and state pending and registered trademark files, as well as the US national common law files. Plus, it’s not just what you’re looking for, but how you’re looking for it. Similarities in sound, appearance, or meaning are important, so when searching on preliminary sites, be sure to look for synonyms, spelling variations, word locations, etc.
Free preliminary sources:
* Your County Clerk – may have an online searchable database
* Your Secretary of State – may have an online searchable database
* USPTO – go to TRADEMARKS section
* Search engines
* Online yellow page listings
* Domain name databases
It is best to leave the aspect of comprehensive investigation to professional firms or lawyers. First though, take advantage of the free resources out there. Then, if the name appears to be available, you can dig deeper by conducting a thorough investigation. As long as the thorough investigation turns out to be clear, you can decide whether to apply for a federal or state trademark.
With the hundreds of details facing the new business owner, the company name should be one of the first details secured. Once he knows that the name is legally available, he can rest assured that he is not infringing on anyone. and let your customers know exactly who you are.