A
trade name is the name of your business or company. A
trademark is a name or word or emblem used to identify the goods or services of a company. A trade name may be protected under state statutes or principles of unfair competition. But a name may function as a trademark, and be protected as a trademark, only if it is used to identify its goods or services. Can a name be both a trade name and a trademark? Yes. For example, the name
Sony, when used on a company letterhead, is a trade name. When it is used on televisions, it functions as a trademark.
How does a name acquire trademark status?
By its use in commerce. This an important principle.
TRADEMARK RIGHTS
When you first use a word or mark to identify the product or service you sell, it becomes a trademark and is protected. In the US, if you register the name with your state you gain greater protection within your state. If you register the trademark with the US Patent & Trademark Office you gain greater protection and it's nationwide. When you register a trademark, the registration dates from your first use of the name in commerce, not the date of the registration. Also, in contrast to copyright law and patent law, trademark rights do not derive from invention, discovery or creativity. In other words, it doesn't matter who came up with the name or who created it. What matters is who first uses the name on goods or services in commerce.
The extent of the protection a trademark enjoys depends on a number of factors according to attorney Richard Stim: "the distinctiveness of the mark, the goods or services, the date of first use, the geographic area in which it is used, and the registration of the mark, if any."
—for a detailed discussion of trademark see Stim's book
Intellectual Property, 2nd Ed., chapter 8, entitled
Principles of Trademarks.
Is it possible for two companies to have the same trademarked name? Yes. The name Ace is owned by both a hardware chain and a bandage maker. Delta is owned by both a faucet company and an airline. Target stores (US) and Target stores (Australia) share not only a name but a bullseye graphic. The logos look the same except for a difference in the letter style. Yet there is no connection between the two companies and no infringement. Burger King, a restaurant chain, owns the name Burger King except for in a small area in central Illinois. A mom and pop restaurant owns the name in a 20-mile radius surrounding their restaurant, as a result of a court decision made when the owners of the local restaurant sued the corporate chain for infringement. The local restaurant had apparently been using the name in commerce for a long time in its locale.
http://www.businessinsider.com/burg...-original-mom-and-pop-burger-king-sign-2013-6
TRADE NAME
Myth: corporate or DBA name clearance equals trademark clearance.
When you form a business, you may register a fictitious business name, also known as a DBA name (short for “doing business as”). This is done in your state or county, depending on your state laws. Or, you may register a name for the purpose of incorporation through your state.
This process involves some kind of “name clearance” through which the state approves your name. This clearance has nothing to do with trademark registration. It is mainly for the benefit of the state so they can keep their tax records straight. It's not necessarily done to keep you from using someone else's name. The clearance process is not exhaustive and in some areas, it is entirely possible for two different companies to register business names that are very similar. Capital Corporation and Capital Incorporated, for example, could both conceivably receive approval for their names in a particular state. Potential for confusion? Yes. But remember, such names would not necessarily be trademarks (used to identify goods or services) but are simply trade names, the names of the two businesses.
On the other hand, if two different businesses used confusingly similar marks to identify similar products or services, so that consumers would have trouble identifying which business produced which, then likely one mark is a trademark infringement of the other.
THE IMPORTANCE OF A TRADEMARK SEARCH
If you choose a business name for your new business and your state does not approve it, you can simply choose another.
If you choose a word to use as a trademark it is a more serious issue. You could spend lots of time and money trying to build your brand by using your mark, buying advertising and printed materials, and then find out that the mark is infringing someone else's mark because it's confusingly similar. This highlights the importance of doing a trademark search first. It's even more important to do a search first if you plan to register your trademark at the state level, or, at the federal level with the US Patent & Trademark Office. Trademark application fees are not refundable and, at least at the federal level, are not cheap.
http://signbrad.com/2017/01/24/trademark-fees-go-up-way-up/
How do you do a trademark search? A Google search is usually inadequate. Even a search on the website of the USPTO may not be sufficient. A state trademark registration won't show up on the USPTO search. There are services that can do searches for you and it may be well worth the money. There are other services that do not do searches, but simply fill out the registration paperwork for you. Beware of false claims and prices that seem too cheap. Or, an intellectual property lawyer can do a search and handle the entire process for you. The trademark process is somewhat complicated. It requires you to do certain things at certain times. A trademark lawyer knows the process. An experienced one can even give you advice on your particular choice for a mark. Such advice could lessen the likelihood of a registration denial, or help ensure that the mark you want to use is not a weak one. Trademark protection can potentially last indefinitely if you follow the rules, in contrast to copyright protection, which lasts only till you die (plus an extra 70 years).
Here is a link to a fascinating series of articles on trademark protection by Erik Pelton, a
Washington, DC, area lawyer. In particular, read
Trademark Tip: Words vs Logos. It was an eye-opener for me. I also liked the article,
Why suggestive brand names are best.
https://www.erikpelton.com/resources/articles/
Pelton is an intellectual property lawyer and a former USPTO examiner and seems very knowledgeable.
Brad in Kansas City