Naming a Business

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The name of a business may be one of its most valuable assets. Thinking up, establishing, and protecting a business name deserves substantial attention and awareness of legal issues to resolve.

Thinking Up the Name

An ideal name for a business will be distinctive, easy to remember, and suggestive of the most customer-preferred aspects of the business. Additional factors to consider are ease of use of the name by customers and adaptability of the name for promotional purposes. Where the name will be used is an important consideration, and the possibility of different meanings for the name in different languages or countries should be considered.

Establishing the Name

Generally, a trade name is established through use of the name. However, before using the name and to avoid claims of unfair business practices or trademark infringement, various name databases should be checked to determine that the chosen name is distinctive and not already used. County and state offices are likely to compile lists of trade names used by registered businesses. Searches on the Web for the name and for variations on the name should be completed. Services such as Network Solutions should be checked to determine whether similar Web domain names have been reserved, and business information services such as LexisNexis, the Thomas Register, and Standard and Poor's are available for searches.

Trademark Protection

Even without being trademarked, a business name is protected from unfair competition. However, obtaining a trademark for the name raises the presumption that later use of the trademarked name or a confusingly similar name by another business is wilful infringement. That presumption would help to obtain an injunction against further infringement and would support a claim for damages against that other business.

To obtain a trademark, an application is filed with the U.S. Patent and Trademark Office. The application can be filed electronically or on paper. Once the application, samples of the mark, and an application fee are transmitted to the Patent and Trademark Office, the proposed trademark is examined to be sure it is generic, not in use, and not prohibited. The proposed trademark then is published in the Official Gazette. If there are no objections to the proposed trademark, the trademark is registered. The process normally will be completed within a year.