Trade Name vs. Trademark
A trade name is the official name under which a company does business. It also refers to as a “doing business as” name or fictitious name. However, a trade name does not provide brand name protection or unlimited rights for use.
International Reach Considerations
Registering a trade name presents disadvantages for international expansion since it cannot extend as an international brand. Trademarks can extend internationally, except in special cases. Applying for a trademark simplifies international reach.
Importance of Registering
You need a trade name when operating under a name besides your legal name. Sole proprietors using owners’ names may not need one. But even slight name changes might require a filing. There are few restrictions when filing a trade name.
Legal Protection and Differences
While they sound similar, legally a trade name and trademark differ. Misunderstanding the difference causes problems later. A trade name is the official business name chosen, whereas a trademark legally protects a particular brand.
Trade Name Registration and Usage
Trade names register under state provisions based on the business form to identify itself during operations and customer interactions. A trademark legally protects and distinguishes products and services from competitors.
Exclusive Rights and Brand Visibility
Registering a trade name gives notice you are using that name. But it does not prevent others using the same name. Trademarks secure brand names legally. Registering both builds brand visibility. Still, trade names relate to formal company names, while trademarks protect brands.