Not protecting your business name could cost you everything

Not protecting your business name could cost you everything

Your business name is one of the most important aspects of your brand. It is the first thing customers see, and it can make a big impression. That’s why it’s crucial to protect your business name with a trademark.

There are many benefits to trademarking your business name. It can help you build a strong brand identity and prevent others from using your name without your permission. Trademarking can also make it easier to take legal action against anyone who tries to steal or misuse your business name.

If you don’t trademark your business name, you could risk losing it to someone else. Unfortunately, it happens more often than you’d think.

What is a trademark?

A trademark is a legal protection that gives you exclusive rights to use and register your business name across the country. This can be a significant step in protecting your business and its reputation.

It can be a word, phrase, symbol, or design that identifies and distinguishes the source of the goods of one company from those of others. The government regulates trademarks in each country – just because you have a trademark in the UK, it won’t apply in the USA, France, or Canada unless you register in each country separately.

There are many benefits to registering your trademark:

• It gives you exclusive rights to use your brand name across the country

• It helps you build a strong brand identity

• It can prevent others from using your name without your permission

• It makes it easier to take legal action against anyone who tries to steal or misuse your business name

Why is it so important to trademark your business name?

Of course, you do not legally have to trademark your business name. With so many things on your to-do list, it can be tempting to put it off. But if you don’t trademark your business name, you could be at risk of losing it to someone else.

An unscrupulous competitor could start using your name and branding without your permission and begin to damage your reputation. You could also miss out on valuable opportunities to grow your business by confusing your customers.

Think about it this way - if someone starts searching for your company's name and they come across your competitor who has trademarked your name or something very similar, they'll be confused. They'll likely go with the trademarked option because it seems more legitimate. 

The best-case scenario in this instance? They’ll go with your competitor and receive good service. However, it's far more likely they'll be disappointed, and they'll share their bad reviews online and to their social circle. Before long, the name you worked so hard to build has been dragged through the mud, and you have zero legal recourse.

In fact, they can demand you stop using the name, even though you traded with it first. There goes all your hard work.

Registering with Companies House does not protect your name

According to Companies House, “there’s a common misconception that you can stop others from using your business name by registering the name at Companies House. Sadly, this is wrong.”

That’s right – even if you have registered your limited company and have secured your trading name with Companies House, you do not own that name. So, someone can still swoop in and use it, or something very similar to it, for their own competing business.

You can see an example here – a small business owner found another company trying to trademark their existing name. Even though they had been trading for years, they had no trademark – and they could lose everything they’d built.

How to trademark your company name in the UK

If you want to trademark your business name in the UK, you'll need to follow a few simple steps. First, you'll need to search the UK trademark registry to ensure your name isn't already taken.

Once you've confirmed that your name is available, you can apply with the UK trademark office. The application will require some basic information about your business, such as the name and address. 

You'll also need to provide a list of goods and services that your business provides and choose which classes to register it under. The different classes can protect your business name in different contexts. The application fee is £170, plus £50 for each additional class.

After you've submitted your application, the trademark office will review it, and you’ll get an initial round of feedback within 20 business days.

The UK trademark process usually takes around three to five months from start to finish, but it can take longer if there are any issues with your application or objections from other parties.

How to trademark your company name in the US

If you want to trademark your company name in the United States, you should start by searching the registry to ensure your name isn’t already taken.

Next, you'll need to file an application with the United States Patent and Trademark Office (USPTO). The USPTO will review your application and determine if your name is eligible for trademark protection.

The fee ranges between $225 and $600, depending on how you submit your application and how many classes you select. Currently, the wait time for a decision is an average of 7.7 months.

How to choose your trademark name

When it comes time to choose your trademark name, you want to be sure it’s perfect. Perhaps you’ve been trading with the same name for a long time, and it works for you. Just make sure it’s available, and you’re good to go.

However, if you are starting a new company, consider the following:

• Can you get the domain? It’s vitally important to get a good URL. With so many taken, you’ll want to think outside the box to find a trademark name that both suits your business and has an available domain. Remember, you can always use unconventional extensions, like .biz or .ninja, but people really do trust the big extensions, such as .co.uk, .com, and .net. In some cases, niche extensions do work well – websites like www.margatehair.salon or www.londoncreche.kids could work really well.
• Is it available? Of course, the first place to look is the trademark registries of the countries in which you will be trading.
• Does it describe what you do? Let’s face it – some industries are more creative than others. Assess your industry and decide if you want to use something more abstract, like “Blue Cedar,” or you prefer to get down to brass tacks with “Expert Accounting.” Of course, you can always add your profession to your name for clarity. The vague “Blue Cedar” becomes much more useful and memorable as “Blue Cedar Nature Photography.”
• Is it offensive or off-putting? Think about cultural context, spellings, and font. Consider the main ethnic groups in the areas you will be trading and don’t accidentally reference a taboo topic. Also think about your acronym – Pretty Inks Stationary Store becomes a lot less pleasant as an acronym!