Because companies are registered at the state level, your firm may have the same name as a business in another state.
However, this might result in trademark difficulties and other complications.
The short answer is: perhaps.
If you choose the same name as another firm, you may be obliged to alter your name or possibly pay monetary damages to the other company. Sharing a name with another firm might also make registering trademarks for your own company difficult.
Trademark rules protect logos, symbols, names, and phrases that differentiate one firm from another, therefore protecting enterprises against unfair competition. The idea is that having two firms with the same name or other distinguishing traits might lead to customer misunderstanding. Because the consumer cannot discern the difference between the two, one firm may lure clients from another.
This may or may not be a problem for firms operating in various states. If you’ve decided on a name that is already in use by an out-of-state company, consider the following before proceeding.
Is the other company in the same industry as you?
Is the other company in the same geographical market as you?
Who was the first to use the name?
Who was the first to register the trademark?
Your responses to these questions will help you decide if sharing your business name with another firm would create customer confusion and who would win a legal battle over the name.
Based on the results of the aforementioned test, there are various situations in which having the same name as another firm is normally permissible.
You work in a totally different industry from the other company.
You work in a completely different geographical market.
Your internet presence and/or e-commerce will not confuse customers.
If you are unclear about any of these concerns, you should contact with an attorney.
When it is not possible to use a similar or exact name
You will not be permitted to use the same name as another firm if there is a risk of customer misunderstanding. Using the same name as another company is usually not permitted when:
You offer separate goods or services, yet you both work in the same industry.
Regardless of industry, the name is in use by a significant national brand.
The other company filed for trademarks before you.
Things may become tricky when it comes to trademarks. You may be the first to use your business name, but another firm may be the first to register their trademark with the state or federal authorities. Most courts will enable you to continue using the name in your market while restricting your company operations within your neighbourhood. The only exception is if you can demonstrate that the other firm was aware of your operation prior to registering its trademark. Willful infringement usually results in a stop and desist letter to the offender as well as the prospect of civil or criminal consequences.
Markets and locations that overlap
When two companies with the same or similar names operate in overlapping markets and areas, the disagreement is usually resolved by an administrative action with the US Patent and Trademark Office or through a lawsuit filed by one of the owners. These disputes may be expensive for companies, so finding a solution to resolve the problem outside of court is advantageous.
Begin with a Basic Search
When deciding on a name for your company, the first thing you should do is put it into a search engine. This is a fast and simple method to discover whether anybody else is using the same or similar name, as well as what that firm does. Once you’ve done this step, you may use a few different tools to find any firms that are already using the name you’ve chosen.
Look through the fictional name database. Your state or county government maintains a registry of all fake business names, commonly known as “Doing Business As” (DBA) names, in use in their jurisdiction. Many small firms may establish a DBA before filing a trademark or utilising their company name.
Check with the business filing office in your state. This agency will hold a list of all registered business entities in your state, such as corporations, limited liability companies (LLCs), and limited partnerships.
Examine the domain names. Another effective technique to discover whether your company name is accessible is to examine if the relevant domain name is already in use. Most domain registrars and web hosting firms offer domain name searches.
Conduct a Trademark Search
After you’ve finished your basic study, it’s time to do a trademark search. While a company is not needed to register its trademarks in order to claim them, those who do are frequently offered greater protection than those who do not. If the name you want to use has already been registered as a trademark in another state, utilising it for your firm may be risky.
The Trademark Electronic Search System is a searchable database maintained by the United States Patent and Trademark Office (TESS). Every trademark registered with their agency is included in this database. Checking the database will also assist to prevent future intentional infringement allegations. In addition, you should check the state trademark databases in any locations where you want to conduct business.
Register Your Business Name
If, after all of this, you discover that your business name is not in use by another company in your state or industry and has not been registered as a trademark by anybody else, you should consider registering it yourself in your state and with the US Patent and Trademark Office. While this is not essential, it will give you with an extra layer of protection if your trademark claim is ever disputed.
Speak with a Trademark Attorney
Trademark law is difficult, so if you have any questions or concerns about your company name, you should always speak with a trademark attorney. An attorney may perform more extensive research and provide professional advise on whether you should use a certain company name and when and if you should register a trademark. Trademark lawyers will also verify that all legal criteria and deadlines are met during the trademark procedure. You may locate the finest trademark attorney for you by searching the American Bar Association or your local and state bar associations.