Your Legal Questions Answered

Congratulations on your new business venture! If your name and logo are unique, you can file an application with the USPTO. The application will require you to provide details about your business, the name and logo you wish to trademark, and the services it will represent. You can apply here.

Once you've applied, you can start using the ™ symbol next to your business name and logo to indicate that you've claimed them. However, you can only use the ® symbol after your trademark has been officially registered.

Even without registration, however, using your business name and logo generally provides you with "common law" trademark rights within your geographic area. These rights are limited compared to a federally registered trademark. Nevertheless, we have successfully sued other businesses that came into the market under common law claims such as unfair competition and misappropriation of trade name.

Here are a few pros and cons to consider when thinking about getting a trademark:

Pros:

1. Exclusive Rights: Owning a trademark gives you the exclusive right to use the name and logo in connection to the goods or services you provide. This can prevent other businesses from using a similar name or logo that could confuse your customers.

2. Brand Recognition: A trademark can help establish your brand identity and make it easier for customers to recognize and trust your business.

3. Legal Protection: With a registered trademark, you have the legal basis to challenge others who may try to use a similar name or logo.

4. Geographic Expansion: While you may start as a local business, a trademark can protect your name and logo if you decide to expand regionally or nationally.

5. Asset Value: Trademarks can become valuable assets that add to the worth of your business. They can be sold or licensed, providing an additional revenue stream.

6. Online Presence: A trademark can help protect your brand name online and make it easier to take action against unauthorized uses, such as domain names that are similar to your trademark.

Cons:

1. Cost: The process of registering a trademark can be expensive, especially if you hire an attorney to assist you. This can be a significant investment for a small business. Since your business is new, you will have to decide if the money is better spent on things like marketing or legal costs.

2. Time-Consuming: The process can take several months, or even years, to complete. During this time, there's a risk that your application could be opposed by other trademark owners.

3. Limited Scope: A trademark only protects the name and logo for the specific goods or services for which it is registered. If you diversify your business, you may need to go through the process again.

4. Maintenance: Once registered, you must actively use the trademark and file regular maintenance documents with the United States Patent and Trademark Office (USPTO). Failure to do so can result in the cancellation of your trademark.

5. Enforcement Responsibility: It's your responsibility to monitor and enforce your trademark rights. This can require additional time and money.

6. Local Focus: If your business is strictly local and you have no plans to expand, the benefits of a federal trademark may be limited. Most small businesses rely on common law rights if they are staying local.

7. Common Law Rights: Without a registered trademark, you still have some "common law" rights to your business name and logo within your geographic area of operation, although these are not as strong as the rights conferred by a registered trademark.

From my experience, most local small businesses do not register for federal trademark protection when they are in a start up phase. In fact, most local businesses do not trademark their name at all.