Definitions and Regulations
A brand identifies goods or services while a company name identifies a legal entity. You cannot have two identical company names within one jurisdiction. However, company names and trademarks are different concepts. For example, Microsoft is a company name and trademark, while Windows is only a trademark. Trademarks are regulated federally while company names are regulated locally, such as by the Australian Securities and Investments Commission.
If companies operate in different sectors and locations, sharing a name is typically allowed. For example, Apple is both a tech company and a record label. Different industries can also share names – Delta is used by both an airline and faucet company. Businesses register trademarks under classes, so identical names are permitted if classes differ.
State laws govern DBAs (Doing Business As). Most states allow two DBAs, which is why LLCs (Limited Liability Companies) submit applications. To ensure your business name is available, search the USPTO (United States Patent and Trademark Office) database. However, small businesses with identical names are often allowed if they are in different states and don’t violate trademarks.
Factors Affecting Company Names and Trademarks
The key factor is consumer confusion. If companies sell unrelated products in separate industries or locations, having the same name is usually acceptable. But issues arise if companies operate in the same industry and area, especially if one registered trademarks first. So while the specifics vary, identical names are sometimes permitted, but priority often goes to whichever company used or registered the name first.
Questions and Examples
Can two companies own the same trademark?
It is possible for two businesses to own the same or similar marks (e.g., Delta Airlines and Delta Faucets). The guiding principle is consumer confusion. If the two marks identify different products and operate in different markets, consumers are not likely to be confused.
What are two examples of a trademark?
- Company names
- Product names
With different industries or locations, sharing a name is typically not an issue. The principle is avoiding consumer confusion.