Trademark- is yours protected?
Are you using a business name that is owned by someone else?
Who is entitled to a name?
According to trademark law the first person to bring the name to market is the owner. For this reason it is very important to carefully document exactly when you introduced your name to the world and keep careful records of your first sale(s).
With the world becoming ever smaller due to the internet, finding a unique name is more and more difficult. But lets assume you already have been doing business with an existing name for about 5 years and you are looking to expand into other markets. In your best efforts you do a google search and discover there is another business in an abutting state doing the same type of business with the same name you have been using. (Most likely you are aware of this before the google search.)
Don’t panic. trademark law is vast and very complex. You may not be infringing at all. You can begin by going to the US Trademark website and conducting a search and see who has registered your business name if you haven’t already registered it. If you find your competition in the abutting state has registered it let us say 10 years ago you certainly are not entitled to conduct business using their registered name. If you haven’t received a cease and desist letter you may at any time. The more you grow your business infringing upon a protected name the more liability you incur.
When a trademark becomes weak
Also, as a trademark holder they must protect their name or through the eyes of the courts it will become a weak mark. As their mark becomes weaker you may be able to build a case against them if you have other arguments that the mark is weak. For example, if there are other businesses that also use the name. The more businesses using the name the more dilute the mark becomes. Also, a thorough review of the trademark application (available online) may reveal other weaknesses. Trying to declare a weak mark works best for defensive use.
Alternately If you registered your name about five years ago and discover through other means the company in the other state didn’t register their name but brought the name to market before you did they are entitled to it. And other than successful intimidation or a sappy please there is no way to prevent them from continuing to use it.
In this situation it is typically mutually beneficial for both businesses to go on as usual. However when one business is anticipating expansion and will directly compete with a business with the same name something will have to give.
When things become costly
At this point you must weigh the costs. The first option would be to change your business name. When you start adding up the cost of a logo, signs, printed materials, trade show booths, etc, etc and your lost name recognition which you have been building over the years you will quickly realize this will be expensive. In addition to the cost can you be sure that you will select a new name that will be unique and not already in use?
The second option is to approach the company in the abutting state and suggest that they change their name. If they haven’t already pursued you they are not asserting their rights which may be reflective of their other business practices as well.
So far we have been assuming you have been infringing. But what if you do a search and discover that you are entitled to the name? Immediately send them a cease and desist letter. Often this will do the trick as they will realize further action will involve the expense of court and ultimate defeat. Court is the least desirable option for all parties because one party will loose and it could be you. It is important to consider what would happen if you loose your name and are required to stop using it immediately. The impact would be enormous.
Use court as a last resort
Hopefully your letter will enlighten them and they will stop using the name. If they don’t it may be beneficial from a financial standpoint to make a cash offer. Evaluate how costly it would be to go to court and in the worst case loose. And this does happen, judges have been know to make crazy rulings. Start with an offer that is reasonable to you understanding that the next step is to bring the matter before a judge.
When bringing a new name to trade it is very important to research as comprehensively as possible it’s uniqueness. Always avoid common names and consider creating an acronym or other combination of letters that do now appear in the dictionary. It is far easier to prove infringement with a distinct name.
Link to United States Patent and Trademark Office…http://www.uspto.gov/













