Should I Trademark My Business Name?
Intellectual Property Concerns for Businesses
Intellectual Property (I.P.): A product of the intellect that has commercial value, including copyrighted property such as literary or artistic works, and ideational property, such as patents, appellations of origin, business methods, and industrial processes.
Consider this: You have been operating your business and have a few good employees. You decide that you want to encourage them by making them a part of the business. You put them on the management track by having them work with clients, negotiate deals, and be involved in the management of the company. One day, one of those loyal employees decides to leave. All is well you through a “have a nice life” party and go back to doing business. Six months later one your clients decides not to renew its contract with you. They have found another vendor who is “cheaper” and “more efficient.” Upon some nifty leg work and investigation, you find out that it was Bob the employee who left your business six months ago and whom you bought a really nice parting gift.
You then contact your other clients and find out that Bob has contacted them as well and has made them presentations based on your business model with a few minor changes. Because Bob has little or no overhead and nothing to lose, he can offer prices that you cannot. And because Bob was trained by you, there is a perception of quality that comes with Bob.
Does your business have intellectual property? Does it have any unique information, designs, writings, or methods that are unique to it? Most businesses fail to adequately protect this information because it does not consider the value that is attached to it. For example, how many times have you allowed another business or prospect to take look at your client list? You client list is a valuable piece of property that was accumulated by your business and is important to the survival of the company. What type of processes have you put in place to protect it from employees who leave and go to competitive businesses or start their own business?
Do not let this happen to you, protect your business by ensuring that you have contracts, agreements, and policies to protect your business’ intellectual property. Your business law attorney can assist you with making sure that you have a viable and enforceable contract with employees, vendors, and others who may come to have intimate knowledge of your business and its intellectual property.
The name of your business is one of the most important assets that your business has. This means that before you choose it (or if you have chosen it already), you need to do some investigation for the sake of the business. So many companies die early on because they are sued for trademark infringement. A successful suit could mean that your business now has to stop using the name that it has been marketing since the beginning and pay damages. This is very damaging to a business and I guarantee that things will never be the same after this happens. So what should you do?
You need to conduct a couple of searches. You of course want to see if the name is available in the state and territory that you are doing business. You then what to see if that name has been trademarked on the federal level. There is such a thing as a state trademark however this is not as strong as a federal trademark. In short, a state trademark will protect your business name only in the state where it is registered. The federal trademark will protect your business name in several states without having to register in each state. Also, you can take advantage of the various federal laws that are made to ensure that others do not infringe upon your business name. Last but not least, do an internet search to see if there are any web addresses that utilize your name. This is important because if affects the strength of your trademark because this name may have been utilized for a long time before you started, and they may have what is known as a “common law trademark.”
Protecting your business names is important because it is a valuable asset that has money attached to it. If you decide to sell your business you can use the fact that you have a registered trademark, registered website, and incorporated name to your advantage. The branding of the business name is imperative when you are marketing, contracting, and leveraging your business. Make sure that you consult your business attorney when protecting your business name. Trademark laws can be tricky and if the trademark is not done quite right, you have wasted your filing fees as well as the money you thought you saved by doing it yourself. So, get in the game and find out what is in your business’ name!
Nothing in this article is intended as legal advice and you should consult an attorney before making any decisions.
