A Trade Name is not a Trademark!

And you need to know the difference. Maybe there would be less confusion if instead of using the words “Trade Name,” we called it by a more accurate term: “Business Name.” We see this quite commonly in our trademark practice, and here’s the usual scenario. A new company or entrepreneur registers a “business name” (say “XYZ, Inc.”) with their home state. The state, usually through the Secretary of State’s office, searches the name, and if it doesn’t find any competing names on the state’s business register that are either the same or confusingly similar, will approve and register the business name. The business owner takes the state’s clean result in the search for competing business registrations as assurance that it’s OK to use “XYZ” as a trademark in its branding and advertising. No! Not true! The state only searches for business registrations, not for product names or trademarks. If there is another company, say the “ABC” company, offering a product called “XYZ,” then it’s “ABC” that owns the trademark, and XYZ, Inc. is looking at a trademark infringement lawsuit if they try to use their business name as a trademark.

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