Key Takeaways

  • A trade name is the name a business operates under, while a brand name refers to a specific product or service marketed by that business.
  • Trade names must often be registered at the state or local level, whereas brand names are typically protected through trademarks.
  • A trade name does not grant exclusive rights like a trademark does.
  • Multiple businesses can use similar or identical trade names, but brand names are protected from infringement once trademarked.
  • Using a brand name that isn't trademarked can leave a business vulnerable to legal challenges.
  • It’s possible to have different brand names under one trade name.

Is trade name the same as brand name? A trade name is used in the course of business that doesn't include the full legal name of the business. On the other hand, a brand name is a name given by an organization to a particular product or service.

What Is the Difference Between a Brand Name & a Trade Mark?: Introduction

Trademarks and brand names can be extremely valuable assets for a business. Often times, a trademark or a brand name becomes just as important as the product or service that the business provides. For example, Kleenex is often used to describe facial tissue. Brand names and trademarks are so important that most companies work hard to protect them from other businesses that are trying to misrepresent or copy them.

Definitions

Brand names will usually identify a specific company or product. A brand name is important because it can evoke positive emotions or images with consumers. Trademarks help to protect a company's brand name. A trademark can be a trade name or registered brand. It will identify the company, their services, or products through a combination of a:

  • Slogan
  • Name
  • Logo
  • Sounds
  • Colors

For example, the Reebok Pump is a registered trademark.

How Trade Names and Brand Names Function in Practice

While trade names and brand names are often used interchangeably, they serve distinct roles in business operations and branding. A trade name, also known as a "doing business as" (DBA) name, is how a company presents itself to the public but is not necessarily the legal name used in contracts or government filings. For instance, a company registered as "Smith Holdings LLC" may operate under the trade name "Smith Landscaping."

A brand name, on the other hand, identifies specific products or services offered by the company. Brands are closely tied to marketing and customer perception. One company can have multiple brand names while maintaining a single trade name. For example, Unilever owns multiple brands like Dove, Axe, and Lipton—each with distinct brand identities, but all fall under one corporate umbrella.

Purpose

The ultimate goal of a brand name is to:

  1. Bring awareness to the consumer
  2. Evoke a delightful response from the consumer

For example, many consumers prefer to purchase a brand name product rather than a generic one because of the perceived value. Upon registering a trademark, the company is able to legally protect their brand name. If any individual or other business attempts to use the brand, or copy it without permission, they may be held financially liable.

Eligibility for Use

Businesses that decide not to trademark a brand name, may have their brand name used by others without their permission. It's important to register your brand name in your home state so that it's protected at the local, city, and state levels. Trademarked names can only be used by others in "fair use" circumstances. This means that other businesses may use the trademark as long as the ownership of the brand, or name, is not confusing.

Limited liability companies, partnerships, or corporations should register at the state level. Filing a "doing business as" (DBA) statement will help protect the name of your business. This is usually completed at the local level.

The U.S. Patent and Trademark Office is the governmental agency responsible for issuing trademarks. You'll need to submit:

  • Your brand name
  • An application
  • Pay the fee

The process can be lengthy and hiring an intellectual property lawyer is highly recommended.

Legal Protection: Trade Name vs Brand Name

A key difference in the "trade name vs brand name" comparison lies in legal protection. Registering a trade name provides limited rights and does not prevent others from using a similar name. Trade name protection is generally restricted to the geographic region in which it is registered and used.

In contrast, a trademarked brand name offers broader legal protection. Once a brand name is federally registered with the U.S. Patent and Trademark Office (USPTO), it becomes a legally protected asset. Trademark registration provides the exclusive right to use the name nationwide in connection with the goods or services listed in the registration. This helps prevent customer confusion and protects brand reputation.

Length of Use

Currently there are no time impediments on the use of a brand name, excluding any constraints that may be monitored at the local level. For example, if your brand and business name are the same and you forget to maintain your business name with state, your business name will become available for someone else to use.

Trademarks are protected for 10 years. They are allowed to be renewed during the fifth and sixth year after registration, and anytime during the year before expiring by filing an Affidavit of Use. There is a six month grace period following the end of the sixth or 10th year, in which the registration for the trademark may be maintained for a fee.

Trade Name vs Trade Mark

The identity of a business is known as its trade name. In order for you to run your business, a trade name will need to be registered with the appropriate governmental body. Essentially, when a business registers their trade name as a corporation or LLP, they are authorizing their business to run under the trade name.

The registration of a trade name does not monopolize that particular name, nor does it mean businesses are allowed to file trademark infringement cases against it. In most states, competitor companies are even allowed to have similar trade names.On the other hand, when a business registers a trademark the company is protected under trade mark law and is able to legally enforce the unauthorized use of their trademark. As previously mentioned, your trade name is not protected by trademark law when it's registered. Therefore, in order to protect it, you'll need to register your trade name under the trademark law.

Risks of Confusing Trade Names with Brand Names

Failing to distinguish between trade names and brand names can lead to costly business mistakes. A business may believe it owns exclusive rights to its trade name, only to face legal action if another party has already trademarked a similar brand name.

Additionally, relying solely on a trade name without securing trademark rights could prevent a company from expanding into new markets if another entity already holds trademark rights in those areas. It’s also possible to lose brand value or be forced to rebrand entirely.

To avoid these issues:

  • Conduct trademark searches before finalizing a brand name.
  • Register brand names as trademarks to secure exclusive rights.
  • Understand that trade name registration alone does not prevent others from using similar names in unrelated regions or industries.

Frequently Asked Questions

  1. What is the difference between a trade name and a brand name?
    A trade name is the business's operating name, while a brand name is used to market a specific product or service. They serve different roles and offer different legal protections.
  2. Can I use a trade name without registering it?
    Yes, but you may be limited in your legal rights. Without registration, others could use the same or similar name, and you might not be able to enforce usage rights.
  3. Is it necessary to trademark a brand name?
    While not legally required, trademarking your brand name offers exclusive rights and stronger protection against infringement, making it a smart move for most businesses.
  4. Can a company have multiple brand names under one trade name?
    Yes. A business can market different products or services using separate brand names, even if it operates under a single trade name or corporate identity.
  5. Does registering a trade name protect it from being used by others?
    No. Registering a trade name does not offer trademark-level protection. To secure exclusive rights, the name should also be registered as a trademark.

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