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Can a Company Sue for 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. If a business is required to be registered and is not, it may be prohibited from bringing any litigation in any court.
What Happens when 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.
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.
Trademark Law and Similar Names
The core guiding principle behind trademark law is to eliminate consumer confusion in terms of a trademark, a name mark in this case. One gets legal protections under trademark rights when they register their trademark at federal level.
By choosing the same name as another business, you risk being forced to change your name or even pay monetary damages to the other company. Sharing a name with another company can also make it difficult to register trademarks for your own business.
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.
Business Name Registration
While you might not be immediately prohibited from applying for the mark with IP Australia, you should still take care and make sure you’re aware of the ACL.
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.
Legal Aspects of Business Names
A trade mark is a way of identifying a unique product or service and can include your name and logo. Once you register the mark, you have exclusive rights to use it within your industry.
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.
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