What’s in a Name? Trade names, Fictitious Names, and Trademarks Explained
Something as simple as a business name can actually cause a lot of headache and confusion for business owners. Most states allow for several types of names to be registered for a business. These names serve different purposes and can be mistakenly or unnecessarily registered, and the confusion can also spill into trademark strategy. Most commonly, we find a situation where a business has registered a trade name believing it will also establish trademark rights.Here’s what the different names mean:
First, a company’s basic ‘name’ is its actual legal name. At formation, a name must be selected that meets two basic criteria: First, the name must be unique among all records of active businesses in the state registry. Second, it must comply with specific designation rules based on the type of business entity involved. For example, a limited liability company must end its name with ‘LLC’, “L.L.C.”, “Ltd.”, “Limited”, or “Limited liability company”. Corporations have similar designations. A business’s legal name is used for all fundamental legal relationships and government reporting purposes.
A trade name is a nick name for the business, not a trademark. A trade name must also be registered and be unique among active name listings in the state registry, or be given consent by a similar user to use the name in duplicate. Companies use trade names in order to have a more attractive, practical, or descriptive name for non-fundamental relationships. Primarily, this is with the general public – customers, contractors, vendors, etc. A trade name can be put on bank accounts and similar non-governmental listings.
A fictitious name is another type of name that can be registered at the state level. Basically, if a business wants to conduct activities under a name that is different from its legal name but cannot register it as a trade name due to availability or other reason, it can report such use as a fictitious name. Like trade names, fictitious names serve no trade mark purpose and do not by themselves establish trademark rights.
Both trade names and fictitious names are often presented as a d/b/a, e.g. XYZ, Corp doing business as ‘Whatever’
Trademarks on the other hand are sensory devices intended to identify the source of goods or services made available in commerce. A word or phrase that is used as trademark can also match the user’s legal name, trade name, or fictitious name, but is otherwise distinct. Trademarks should be developed and protected independently from a company’s name registrations.
Getting your name(s) right can be more challenging than it first sounds.
What’s in a Name? Trade names, Fictitious Names, and Trademarks Explained
Something as simple as a business name can actually cause a lot of headache and confusion for business owners. Most states allow for several types of names to be registered for a business. These names serve different purposes and can be mistakenly or unnecessarily registered, and the confusion can also spill into trademark strategy. Most commonly, we find a situation where a business has registered a trade name believing it will also establish trademark rights.Here’s what the different names mean:
First, a company’s basic ‘name’ is its actual legal name. At formation, a name must be selected that meets two basic criteria: First, the name must be unique among all records of active businesses in the state registry. Second, it must comply with specific designation rules based on the type of business entity involved. For example, a limited liability company must end its name with ‘LLC’, “L.L.C.”, “Ltd.”, “Limited”, or “Limited liability company”. Corporations have similar designations. A business’s legal name is used for all fundamental legal relationships and government reporting purposes.
A trade name is a nick name for the business, not a trademark. A trade name must also be registered and be unique among active name listings in the state registry, or be given consent by a similar user to use the name in duplicate. Companies use trade names in order to have a more attractive, practical, or descriptive name for non-fundamental relationships. Primarily, this is with the general public – customers, contractors, vendors, etc. A trade name can be put on bank accounts and similar non-governmental listings.
A fictitious name is another type of name that can be registered at the state level. Basically, if a business wants to conduct activities under a name that is different from its legal name but cannot register it as a trade name due to availability or other reason, it can report such use as a fictitious name. Like trade names, fictitious names serve no trade mark purpose and do not by themselves establish trademark rights.
Both trade names and fictitious names are often presented as a d/b/a, e.g. XYZ, Corp doing business as ‘Whatever’
Trademarks on the other hand are sensory devices intended to identify the source of goods or services made available in commerce. A word or phrase that is used as trademark can also match the user’s legal name, trade name, or fictitious name, but is otherwise distinct. Trademarks should be developed and protected independently from a company’s name registrations.
Getting your name(s) right can be more challenging than it first sounds.