Trade Names vs. Trademarks
What is a trade name? A trade name is the official name under which a company does business. Trade names also register as "doing business as" names or fictitious names. They offer no brand protection or unlimited use rights.
Trade names differ from trademarks. A trademark legally protects and distinguishes products and services from competitors, like the Nike Swoosh.
Registering a trade name has disadvantages for international expansion, as they cannot extend brands internationally like trademarks can.
Registration Processes and Legal Implications
The registration process differs between trade names and trademarks. Trade names register under state provisions based on the business form, while trademarks register under the Trademark Act with federal approval. A registered trademark allows similar trade names, but similar trade names may not get ministry approval for companies.
Trade names provide notice you are using that name but do not prevent others from using the same name. Registering a trade name does not provide exclusive use rights, making it important to understand the differences and choose carefully.
Practical Use and Jurisdictional Variations
You need a trade name when operating under a name besides your legal name. In Washington D.C., trade names file with the DCRA, typically excluding owners’ real names. They offer no brand protection or unlimited use rights. Rules and procedures regarding selection and usage follow jurisdiction guidelines.
While trade names and trademarks sound similar, they differ legally. A trademark legally protects a particular brand. Misunderstanding this difference could cause costly problems later.
Examples and Clarifications
For example, United Parcel Service’s legal name is United Parcel Service of America, Inc., but it uses UPS as its trade name. Multiple firms can use one trade name, but trademarks better protect products and services from imitation.
What is an example of a trade name? For instance, “PepsiCo” operates under this trade name but has trademarks that protect its products.