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News & Insights

| 3 minute read

Five Trademark Mistakes New Business Owners Make (And How to Avoid Them)

There is no shortage of decisions to be made when starting a new business. From choosing the right location to hiring the right employees, the to-do list can feel never-ending. However, it's essential that the process of choosing a strong and protectable brand name for your new company isn't. Below are five common mistakes we see entrepreneurs make when choosing a trademark and how you can avoid them in the excitement of launching your company.

  1. Assuming that a Secretary of State registration or a domain name registration is enough to secure your rights to the brand name. Ensuring your company is properly formed in its state of formation, as well as registered in any state where it will conduct business, is a key first step for any new company, but it does not give you trademark protection over your brand. State registrars look only to see if the requested name conflicts with an existing company name in that state. Similarly, registering a domain name only gives you the right to use that particular domain name. Neither protects the company name nor similar versions thereof from being used by other companies as a trademark. Using your brand name (which may not exactly mirror the company's registered name) in commerce, and, ideally, obtaining federal trademark registration for it, are needed in order to protect it.
     
  2. Getting attached to a name before confirming if it's available. Coming up with a unique name for a business is often one of the most exciting, "Wow, I'm really doing this!" moments of the process of starting a business. But even when you think you have the perfect idea, try not to get too attached to it until you've done your homework to confirm it is available. The earlier you contact a trademark attorney to run a clearance search, the easier (and cheaper) it is to pivot if needed. Even a quick initial conversation can save you from investing time and money in a brand you may ultimately have to walk away from.
     
  3. Doing a quick USPTO word search and assuming you're good to go. The USPTO database is a great starting point for searching for available marks, but it is just that, a starting point. A simple word mark search won't show marks with common law rights, marks that are only registered at a state level, marks that may sound similar but have different spellings, or even design marks that still may be considered confusingly similar to a standard character mark. 

    A thorough clearance search also looks at variations in spelling and appearance of the word, business name databases, domain registrations, social media handles, and industry-specific sources to build a much fuller picture of what may already be in use within the relevant industry. Conflicts can come from places a basic database search will not uncover, and the potential legal risks from using a particular name are not always apparent at first blush.
     
  4. Picking a name that describes exactly what you do. While you naturally want customers and potential customers to know what your business is about, choosing a generic or overly descriptive name will make it more difficult to obtain trademark protection for the name. The strongest types of trademarks and brand names are those that are creative and unique ('fanciful' or 'arbitrary' in trademark-speak). Trademarks that suggest, rather than describe, a company's goods and services are also more readily protectable. 
     
  5. Putting trademarks and brand development on the back burner. Trademarks and brand name development have a habit of getting moved down the to-do list, but developing a strong brand name protection strategy from the start of your business is a valuable investment. Using a 'placeholder' name and planning to figure out a brand strategy later is a surefire way to create headaches for a business owner and to confuse current and prospective customers.  

Trademarks don't have to be complicated, and developing a brand strategy early is one of the best investments you can make in your new business. Please reach out with any questions – we're happy to help you get started on the right foot.

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insight, intellectual-property-law, seattle, san jose, new york, minneapolis, menlo park, los angeles, las vegas, corporate law, business formation, trademark, domain registration, uspto, ip, intellectual property, business law