Entrepreneurs, Take Note: Protecting Your Business Name Through Trademark Registration
Do You Have The Legal Right To Use Your Small-Town Business Name?
NOTE: This article is not meant to offer legal advice. Always contact a professional before making any legal decisions.
In a fascinating tale of serendipity, an American businessman opened a small typewriter and office machine store in Europe in the late 1950s and named it "IBM."
Little did he know, the actual IBM would soon come knocking on his door, having failed to secure the rights to their name outside of the United States.
A similar occurrence happened to a business in my hometown of Bozeman, Montana.
A local thrift store called 'Sacks' thought "Sacks Thrift Avenue" would be a great store name.
When New York's department store, Sax Fifth Avenue, got wind of the name, the first call was to their legal department, and a cease-and-desist letter was sent to the thrift store.
A threat to a New York department store by a small thrift shop in Montana seems a little paranoid. But if you let one entity slide, the slope gets slippery.
These two anecdotes highlight a common occurrence in Main Street America.
Business owners invest significant resources into developing a name or trademark, only to discover that someone else already has rights to it in other states or countries.
Some owners may not have intended to expand beyond their hometown or state, only to receive a cease-and-desist letter from a lawyer claiming trademark infringement.
So, how can entrepreneurs avoid these costly and frustrating situations? The answer lies in registering their business names as legally protected trademarks.
A trademark is established when a business name is used to identify a company's goods or services in the marketplace.
For example, Nike is a corporate name and a shoe trademark. Similarly, a pizza restaurant or retail store may use its corporate name on storefronts and may want to consider registering it as a trademark.
You must assess the potential benefits and risks to determine if your business name is worth registering as a trademark.
A small accounting firm with a single office may not require registration, but a multi-location retail shoe store like "Best Foot Forward" should continue reading.
Once you've decided to protect your business name, the next step is conducting a preliminary search to ensure that no one else has already claimed it.
For a reasonable fee, online services like nameprotect.com can search federal trademark databases, state databases, and business directories.
The U.S. Patent and Trademark Office also offers a free database search at uspto.gov.
Assuming the name is available, the next step is to register it as a trademark.
If your business intends to operate solely within one state, registering at the state level with the Secretary of State is sufficient.
However, if you plan to operate in multiple states, it is advisable to pursue federal trademark registration.
The U.S. Patent and Trademark Office can provide a federal trademark registration packet upon request.
Alternatively, services like nameprotect.com can refer business owners to intellectual property attorneys who can assist in preparing the necessary federal registration forms.
The costs associated with trademark registration can vary. At the state level, expect to pay less than $100, while federal registration typically costs $245 and up.
Additionally, if business owners want a service such as Legal Zoom to prepare their federal registration forms, there is a $299 fee. A worldwide search can reach $500. (It's important to note that these prices may vary depending on the states and services required.)
While much of the research and legwork for trademark registration can be done independently, consulting with an attorney well-versed in trademark law is recommended.
They can provide valuable guidance throughout the process.
For more information on trademark registration, visit the intellectual property law section of Nolo.com.
The U.S. Patent and Trademark Office and nameprotect.com also offer basic information on trademark registration.
In conclusion, protecting your business name through trademark registration is crucial for entrepreneurs.
By investing time and resources into this process, you can safeguard your brand and avoid costly legal battles or the need for a name change.
Don't let someone else claim what is rightfully yours – take the necessary steps to protect your business name today.
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