Every year, I watch smart, hardworking entrepreneurs make the same avoidable mistakes with their business names, mistakes that can cost them their brand entirely. Here are the five I see most often, and how to steer clear of them.
1. Thinking an LLC gives you ownership of your name.
Registering an LLC with the state only reserves that entity name for internal business filings. It does not grant you trademark rights or stop someone else from using or registering the same name for their goods or services. In today’s era of social media marketing, every business is using the same worldwide platforms to market their business. This means you need a federal trademark registration for your business, or you will likely be duplicated at some point.
2. Choosing a name that sounds like an existing protected brand.
If your name is confusingly similar to an established trademark, even in a different font, spelling or industry, you can face a costly rebrand or lawsuit down the road. Similarity is judged by sound, meaning and impression, not just spelling.
3. Borrowing a pop culture reference for your business name.
That clever nod to a movie, show or character might feel harmless, but major media companies aggressively protect their IP. Using it as your brand name invites a cease-and-desist, or worse, a lawsuit.
4. Launching before running a clearance search.
Skipping a proper trademark clearance search before you print signage, launch a website or file paperwork is one of the riskiest (and most common) shortcuts. A clearance search catches conflicts while they’re still cheap to fix.
5. Believing a purchased domain name makes you safe.
Owning the .com doesn’t mean you own the trademark. Domain registrars don’t check for trademark conflicts, and owning a URL offers zero legal protection if someone else has rights to the name.
The good news: Every one of these mistakes is preventable. A little diligence before launch — and a conversation with a trademark attorney — can save you years of headaches and thousands of dollars.
Whitney Bower is a trademark attorney with a nationwide federal practice. She works with business owners every day to protect their brand names and ideas, helping them avoid costly litigation down the road.
