I have an LLC, so I don't have to trademark my business name...right?
Many people don’t understand the difference between setting up their business entity and protecting their name by trademark registration. Many businesses think that setting up the business entity protects the business name.
1. The business entity is typically registered with the state in which the business is located.
The name of the business is submitted to the state and it is reviewed to make sure that no one else in the state has the same name.
In contrast, when applying for trademark registration, the name is submitted to the United States Patent and Trademark Office (USPTO). The USPTO will review the trademark application and search their database to make sure that there is no other name that is confusingly similar to your business name.
So, when a business entity is formed at the state level, it doesn’t mean that your name is protected by trademark registration with the USPTO.
2. A trademark registration is a very powerful piece of business property.
Once your mark is registered, you can prevent anyone from using your exact name (and anything confusingly similar to your name) in connection with the sale of similar goods and services.
Trademarks can be used as collateral against loans. My favorite example of this was in 2006, when Ford Motor Company put their blue oval logo (along with other assets) up as collateral against a 23.5 billion dollar loan (see here).
3. Trademarks never expire.
As long as you continue to use the mark and keep it maintained with the USPTO, you can keep the mark registered. A great example of a long term trademark is Coca Cola®. As long as they keep selling products under this name and keep current with the USPTO, they can continue owning the trademark!
Registered trademarks are also presumed to be valid. After 5 years of registration, a trademark owner may also file an affidavit of incontestability. In this case, the trademark validity cannot be rebutted. This can be very helpful when enforcing your trademark rights against another person or business.
4. Ensures that you can continue to use the name if you plan to expand your operations
I have seen too many times when a first business doesn’t register their name and then another business comes along and registers the same name after the first business starts. The first business can continue using the name in their geographic footprint, but they are prevented from expanding across the U.S. It can be very frustrating and discouraging for the first business if they are hoping to expand.
Oh I cannot forget! The Trademark Registration certificates are very beautiful and look great framed!
If you are interested in learning more about trademarks, click here to join the Pirate Fight Club Facebook group