Coming up with the perfect business name is hard work. Whether you invest in a professional naming service or brainstorm with your team, the result should be something special: something you want to protect.
So naturally, you’re thinking about copyrighting it, to ensure that fantastic business name is all yours.
I have bad news and some good news. The bad news is that you can’t copyright a business name.
The good news? You can trademark the business name instead. This way, you still protect the name and maintain the exclusive right to use it. No other entrepreneur can swoop in and steal your hard work.
Now, you might be wondering, “What’s the difference between copyright and trademark?” And “Why do I need one instead of the other?”
Let’s look at the critical difference between the terms and explore scenarios where you can use each.
Copyright vs Trademark
A copyright is a collection of exclusive rights that are automatically vested in the author or creator of an original work. The criteria for copyright protection is that the work must be original, creative, and fixed in a tangible medium.
Copyright protects the exclusive right to reproduce a work, prepare derivative works, and distribute copies of the work. Others include the right to perform or display the work publicly.
Copyright is for protecting and claiming rights to intellectual property such as architecture, books, movies, music, photographs, and even computer software. It’s a legal mechanism that ensures that the creative minds behind intellectual or original works get the full credit they deserve.
On the other hand, a trademark is any word, phrase, design, symbol, or combination of any of these elements that identifies and distinguishes the goods and services of one business from the other in the marketplace.
So copyright is for creative and intellectual work, while trademarks are for commercial signifiers.
The word trademark covers both trademarks and service marks. The distinction between both is that while a trademark is used for goods, a service mark is used for services.
People commonly misinterpret owning the trademark or service mark to a good or service as having exclusive rights that prevent others from using them.
The fact is, trademarks only protect you from how others in your industry can use words, phrases, designs, or symbols concerning your specific goods or services.
Let’s say you are using the name “Proton Designs” to differentiate your logo design and branding agency from other agencies in the design industry. Trademarking “Proton Designs” prevents other marketing and branding agencies from using the name, but a business in another industry such as interior decorating may be allowed to use the name without infringing on your trademark.
Now that you know the distinction between trademarks and copyrights, you’re probably eager to learn how to copyright a business name. Let’s explore the trademarking process in detail.
How Do I Trademark a Business Name
There are four key stages to trademarking a business name. Here is a step-by-step guide to the business name trading process, plus what to expect at each point.
Step 1: Deciding If Your Business Needs a Trademark
Not all businesses need to trademark their name. Technically speaking, you don’t need to trademark a business name to get some intellectual property protection.
Once a business starts using a specific (unique) name for its goods and services, it becomes the common law trademark owner of the mark — albeit in that geographic area.
If you plan to maintain a small-scale enterprise serving only your local community, you may not need to trademark your business name. A common law trademark already protects you.
Step 2: Pick a Unique Business Name
For the USPTO to approve and include a trademark in its database, it has to be unique and distinct from other existing marks. This rule prevents customers from confusing one business’s trademark with another.
If you start the trademark application process with a non-distinct business name, the USPTO will likely reject your application. Remember to follow local requirements when choosing a business name.
As you develop a list of potential business names, run them through our free Trademark search to determine whether your intended trademark is the same as or too similar to existing marks.
Once you confirm that your business name is unique, you can proceed to prepare your trademark application.
Step 3: Preparing for Trademark Application
Many see this step as the most demanding step in the trademark application process. At this stage, you need to be thorough and clinical to increase the chances of the USPTO approving your application.
Here’s a list of items you need to produce at this stage:
- Information for Entity Filing Application: name, address, contact, and other relevant details of the business or individual.
- Description of Mark: a good description of what you want to trademark.
- Trademark Classification: the categories under which you intend to register your goods/services.
- Basis for Filing: whether the trademark you are registering is already in commercial use by your business.
- Filing Fee Payment: the total fee will depend on the chosen basis for filing, the number of marks, the type, and the number of categories you are filing under.
Step 4: File and Submit Your Application
As of 2020, all trademark applications must be done electronically via the Trademark Electronic Application System (TEAS).
When you visit the page, create a USPTO.gov account, choose the filing option you want to use between TEAS Standard and TEAS Plus (costs differ between both options because of the different number of up-front requirements), start your application, pay all fees, and submit it.
Your application will be reviewed by a government patent attorney. If there are any issues, you’ll receive an “office action,” which is a letter explaining the reasons for refusal. You’ll typically have six months to address all issues and resubmit your application before another review.
The USPTO will place your application in an online journal for three months to give the public and other businesses a chance to oppose your registration. If no business entity objects to your application, your mark will be approved and become a registered trademark.
State vs Federal Trademark
Should you register a state or federal trademark? It depends on your type of business, the geographic area you want to cover, and your budget for trademark registration. Once you understand the difference between both, you’ll know which is best for your business.
Let’s dig in!
A state trademark — as the name suggests — is a mark you register with your state’s filing office. When you register your business name within a state, that state protects and gives your business exclusive rights to use the mark within its borders.
Some pros of state trademarking include:
- It’s easier, faster, and relatively less expensive to process.
- You get exclusive rights to the mark within the state.
- You have legal rights to sue for infringements in a state court.
- You can use the mark in connection with goods or services you sell or distribute within the state.
- It gives you priority if there’s a conflict with another trademark while trying to register your trademark with the USPTO.
A federal trademark, on the other hand, is a mark registered nationwide via the USPTO.
When you register your business name as a federal trademark, it gives your business exclusive rights to use the mark across all fifty states of the United States.
Here are some benefits of federal trademarks:
- You get exclusive rights to the mark across the country. Other businesses in your industry can’t use the same or very similar marks without your permission.
- Federal trademarks are superior to state trademarks. If a federal trademark was in use before a state-registered trademark, the federal trademark owner can stop the state holder from using the mark. If the state mark was in use first, its use may be restricted to the borders of the state where it was registered.
- You can file an infringement lawsuit in federal court.
- Registering a trademark with the U.S. Customs and Border Protection Service can prevent infringing products from being imported into the country.
- You can use a federal trademark registration as a stepping stone for obtaining foreign trademark registrations.
State trademarks cost between $50 and $200. In comparison, federal marks start from $250 and $350. They can easily reach thousands depending on factors like the filing option, the number of marks applied for, the number of classes of goods/services filed for, and your application filing basis.
Wrapping Up
Trademarking your business name is not the same as copyrighting it, but it’s just as critical for legally protecting your business’s identity. While the trademark application process might seem challenging, with the right information and guidance, you can navigate the journey like a pro.
Whether you choose to register your trademark by yourself or via a trademark attorney, the key is to be thorough and patient. Don’t let the potential costs deter you from taking this crucial step in securing your business’s future. Start your trademark journey today.
Frequently Asked Questions
How much does it cost to copyright a business name?
While you can’t copyright a business name, you can trademark it for as little as $250 or $350 to thousands of dollars.
The total cost of trademarking a business name depends on factors like the filing option, the number of marks applied for, the number of classes of goods/services filed for, and your application filing basis.
Can I copyright my business name for free?
While you can’t copyright your business name for free, you can trademark it for a relatively small fee if you opt for a state trademark.
Should I copyright my company name?
While you can’t copyright your company name, you should trademark it to receive the exclusive right to sell your goods and services under the mark, protect it against infringement, deter trademark squatters, and prevent competitors from registering a similar company name.
