Trade Names Explained
A trade name is the official name under which a company does business, also known as "doing business as" (DBA). It is registered with state authorities and puts the business on the state register for proper tax status and legal rights. However, a trade name does not offer legal brand protection or guarantee trademark approval. For example, "PepsiCo" is a trade name.
Trademarks Explained
A trademark provides legal protection to a brand, identifying and legally setting apart a product or service. It is usually a name, logo, or slogan, such as the Nike Swoosh. Registering a trademark with the United States Patent and Trademark Office operates federally and includes state trademarks, granting exclusive use rights and simplifying international reach.
Registration Process and Legal Protection
Trade names and trademarks both require registration but under different provisions. Trade names register under state provisions based on the business form, providing notice of use but no exclusive rights. Trademarks, registering under the Trademark Act, secure brand names and allow for easier international expansion.
Examples and Cases:
- Names like McDonald’s serve as both trade names and trademarks.
- In Washington D.C., trade names file with the DCRA and typically exclude owners’ real names.
- Registering your name as a trademark gives you exclusive use rights, while a trade name does not.
Understanding the differences between trade names and trademarks is crucial for legal protection and brand visibility. Make sure to conduct a trademark search and understand jurisdiction guidelines before filing for a trade name or a trademark.