Trademark Considerations in Choosing a Corporate Name

After you've completed the process of determining whether your desired corporate name is available for use in your state, another set of considerations also comes into play — trademark, trade name,

A Secretary of State's permission for using a corporate name is fairly narrow. It's merely a finding that the name is not the same as, does not conflict with, and is not confusingly similar to any other corporate name registered in that state. Incorporating your company in whichever state you choose does not give trademark protection for your company name. The permission does not necessarily mean that you'll have the legal right to use that name, because federal and state trademark laws may have granted prior rights in your chosen corporate name to a third party, which may ultimately be able to prevent your corporation from using the name, even if the name is available according to your state's Secretary of State.

Key Terms Defined

• Trademark. Any word, symbol, design, slogan, or combination that identifies and distinguishes goods.
• Trade name. The name of a business or company, generally not protectible as a trademark unless used to identify and distinguish goods or services.
• Service mark. A mark used in the sale or advertising of services to identify and distinguish services performed for the benefit of others.
• Distinction between trademark and service mark. The main difference between a trademark and a service mark is whether the mark is used with goods or services. Goods commonly have labels, and services have no place to attach a label. For most other legal purposes, trademarks and service marks are treated equally.