A brand identifies goods or services. For example, Microsoft is a company and trademark. Windows is only a trademark. Company names are regulated. You cannot have two names the same within one jurisdiction.
Legalities of Business Names
If two clothing companies had the same name, it could confuse consumers. The name first rule matters. If your business used and registered the name first, you may argue legal right to it.
Name Confusion and Competition
If companies work on unrelated industries, they could share a name. For instance, a tech and clothing company. If both deal with technology or clothing and share a name, it is a big problem. Lawsuits could happen.
When companies unite assets and liabilities for a new entity under one name, structure and objective, it is a merger. Business names should communicate values and brand identity. Co-owners can include both names or none.
If companies are across regions, they can share a name. For instance, “Apple” tech and music companies have distinct industries. “Delta” is both an airline and faucet company. Businesses register trademarks under classes like “clothing” or “software.” With the same name but different classes, it is allowed.
The guiding principle of trademark law is no consumer confusion about a name. One gets protections when registering federally. Key factors include:
- same industry?
- same location?
- which used the name first?
- which registered it first?
With different sectors and locations, no issues. If similar services in one area, it likely won’t be acceptable.