Trade Name vs. Trademark: An Overview
Trade names and trademarks are identification tools for a business, and they are two separate concepts with differing functions and offering multiple protections. A trade name refers to the name that a business uses. It can differ from the name held as a trademark, which identifies specific brand features in the name, Logo, or slogan that are being used in business.
Using the wrong name for the business can lead to legal conflicts if it coincides with an already existing trademark name.
Comprehending Trade Names: Essential Facts and Factors
“Trade name” is the legal name under which an individual operating as a sole proprietor or an enterprise conducts its operations. This is also referred to as a “doing business as” name.
Requirements for registering a trade name differ from state to state, but in most states, the registration is supposed to be done either with the state or with the clerk of the county. The Small Business Administration provides a website link that indicates the requirements for trade name registration for each state.
The registration of a trade name is an investment in business brand identity, although an unlimited trade name and right to use a trade name cannot be obtained through registration of a trade name. In many states, for example, registering a trade name permits other businesses to operate using the same trade name, and thus you can have several businesses using Joe’s Painting and Roofing in different cities in the same state, for example, Los Angeles and San Francisco.
These are really more for informing the tax collection agencies of your business and have very little, if any, direct relation to protecting your trade name. The purpose of registering a trade name is mainly for administrative and accounting reasons in that you are actually required to file a corporate tax return with the Internal Revenue Service, in addition to your own individual income tax return.
Even though registering a trade name does not carry legal protections similar to registering a trademark, choosing a trade name does have some consideration involved. This is because it marks the first stage in building identity for your business.
Comprehending Trade Names: Essential Facts and Factors
This is considered a more significant stage which can be associated with building brand identity. This can be associated with or part of trade name. This takes the form of names, logos, symbols, or company slogans.
Two easily identifiable examples of trademarks would be Nike’s swoosh logo and Coke’s “Coca-Cola” in its signature script. The reason trademarks can easily be identifiable is due to the presence of the trademark symbol.
Protect your Brand with Trademark Registration
A trademark is a name that requires a separate registration from a trade name and can be registered at the state level, federal level, or internationally. Trademark registration in a state is easier and inexpensive, but it only protects the trademark within that state. To get protection across the country, it has to be registered federally through the USPTO.
It can also be registered as an international trademark. Thanks to the “Madrid Protocol,” this can be done by one application with over 100 member countries. However, this does not necessarily mean that there will be acceptance in all of them. A country’s trademark office will consider whether the mark is qualified for registration in its country.
Benefits and legal Protections
Trademark registration ensures a person or business has exclusive rights to use it. It confirms the trademark was not used by any other business entity. Also protects against other entities infringing on the registered trademark. It also protects a business or person from being liable for any infringement on the trademark that is already registered.
A business can register the trademark themselves, or they can decide to allow an attorney. Who specializes in intellectual property law or trademark registration to take care of this for them. It is an added sense of security if the attorney who is an expert in intellectual property law is the one who takes care of the registration. So that a thorough check can be made to ensure that the trademark has not been registered by anyone else.
What Is One Example of a Trade Name?
A trade name refers to that name which is used for doing business. Examples include the following: IBM, Wal-Mart, Ford, Nike, and so on. Sometimes a trade name may also be a trademark.
What Is the Function of a Trade Name?
The trade name of an organization
Every business organization has to have a name. Trade names are necessary in order for a company to be differentiated from other businesses. It is a kind of branding in itself. It does not have the same protection in law that might prevent other businesses or enterprises from using the same name.
Can I change my business name and retain the same EIN?
Yes. If there is a change of business name and/or address, this does not always mean there will be a change in its employer identification number (EIN). Which is a nine-digit number used to identify each business.
Summary
Trade names and trademarks are easily confused as the two are often the same word. However, the two have different applications in the eyes of the law. Trade names are the names through which a company transacts its businesses. On the other hand, a trade mark is the name or symbol that is used to distinguish particular products or services. One thing with trade names is the fact that they do not possess exclusive rights. However, a trade mark is the only name that provides exclusive rights if it is officially registered.
