Can two businesses have the same or similar names? It’s possible if they operate in completely different industries or are located in separate geographical regions. Since they serve different markets and cater to distinct customer bases, there is minimal risk of consumer confusion or competition.
Your business name should communicate values while being easy to read and understand. Co-owners can decide to include both names or neither.
Moreover, you can use as many business/trading names as you like, but you should avoid using one that is the same as the registered name of a company in the same industry. There cannot be two companies with the same name, as a company registered in one state can be moved to another state.
For most states, two businesses will not be allowed to use the same DBA. Using the same name as another business will typically not be acceptable when:
- You sell different products or services but operate within the same industry as another company.
- The name is in use by a major national brand, regardless of industry.
- The other business registered for trademarks before you did.
This means that when two companies have the same name, the first company to use the name and get it registered has the grounds to argue for ownership of the name. If your company is also the first to trademark the name, it will add more points to your arguments for ownership of the brand.
Can a company sue you for having a similar name?
Some states may have a central registration for businesses operating under a so-called “assumed” name (d/b/a), but mostly this registration is considered a local activity.
What happens if another company uses your name? Another company’s use of your name will likely only become a problem if you’re doing business in that area of the world.
Can someone use your business name? If someone uses your name, showing proof that you’ve trademarked the name could be enough to convince a business to choose something else.
What does Trademark law say about two companies having the same name?
The core guiding principle behind trademark law is to eliminate consumer confusion. One gets legal protections under trademark rights when they register their trademark at federal level.
A trademark lawsuit will require you to prove three things:
- You have registered a trademark or service mark in the name.
- Someone else is using the same or similar name to sell similar goods and services to yours.
- The infringer’s use of the name is confusing customers or diluting the power of your trademark.
What happens if you have the same business name as someone else?
If your exact business name is taken by another company, your state’s Secretary of State will not permit duplications so as to avoid confusion.
Can I trademark a name that is already in use but not yet trademarked?
You can’t file for registration a trademark that someone else is already using if she uses the trademark first.
Can you sue someone for using your business name?
Yes, your business name counts as your intellectual property, so if another business is using your name, you can attempt to raise a claim against them.
Definitions
What is the difference between a trading name and a business name?
A trade mark is a way of identifying a unique product or service and can include your name and logo.
What is a business legal name?
The legal name of a business is the official name of the person or entity that owns a business. If you are the only owner of your business, then its legal name is simply your full name.