What you should know about business names
In our trademark work, we frequently come across people who are confused about business names. Some believe that if registered as a company or business name, they are secure. However, quite often, they are not nearly as secure as they thought.
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"... if you like fixed costs as much as we do, then you will like Battle's services ..."
G. Moore Brady, Managing Director, Fuschia
You computer is protected! But .. is your brand-name?
A business name is not properly protected if it is registered merely as a business name or company name.
For example, someone opening a new business registered a business name in Ireland. Shortly after they put the sign outside the business, they got a notice from the owner of a registered trademark to stop trading under that name. Their solicitor sought our advice. We had to advise they had no legal title or rights to the name. .. Even though it was a registered business name here. They had to stop trading under that business name.
- If the business name is registered under the Registration of Business Names Act, it is not protected from being copied.
- There are around 20 business names containing the term Village Cabs, and 30 businesses with the name Little Treasures registered under the Registration of Business Names Act. This Act does not stop imitators. It does not give you any assurance that you hold title or rights to use the name exclusively. You could register your name under the Act and still infringe registered trademark rights.
- If you want to protect your brand name, logo or sign you should register a trademark.
Question: - If a business name is registered as a business name, is it protected or as valuable as a registered trademark?
Probably among the most valuable assets in business, ... are brand names.
Some people register a name, logo, brand or sign under the Registration of Business Names Act, thinking this protects their business name like a trademark. It does not. Neither does registration as a company.
The Registration of Business Names Act identifies and records the location of a business, but it does not give you the same rights or powers that can be obtained when you register a trademark. So, people should be more aware that registering a trademark for establishing legal title and exclusivity powers .... you names or logos can become a lot more valuable when they become registered as trademarks.
However, know that registered trademarks are very different from registered business names.
Registered trademarks have some more powerful features than registered business names.
Question: - is a registered trademark better than business name registration?
A registered business name is quite different to a registered trade mark in terms of legal rights.
Registered trademarks are stronger in terms of established legal rights than registered business names.
In Ireland, business name registration comes under the Registration of Business Names Act, 1963. But the business name is not protected by this law.
Businesses in Ireland are required under the Registration of Business Names Act to notify the Companies Registration Office of any such change of business name within one month after the change.
By registering a business name, a business is complying with the requirements of the Registration of Business Names Act. It identifies the address and location of where that name is trading. If a business ceases to carry on business under a name, then the owner is duty bound legally to notify the Companies Registration Office.
It is worthwhile understanding that there are important differences between registration as a business name, and registration as a trademark. One establishes stronger legal rights than the other. When you register a business name it is like the name being recorded in an address book or directory. It identifies where an entity can be contacted, but it is not at all the same as legal title. The "Names" Act does not stop another entity with the exact same name setting up around the corner. The law for registered trademarks is very different. Legal title to names, brands and logos can be legally established when you register a trademark. This legal title can be more powerful in the case of registered trademarks than in the case of registered business names.
For more information, visit our web page, you should register a trademark if ..
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Know that registered trademarks can protect, registered business names don't
In Ireland, business name registration is a regulatory requirement. It is very different from registration of trademarks. Some of the main differences involved in business name registration compared with trademark registration include the following:
- business names MUST be registered;
- business name registration does not convey any special rights;
- several similar business names can belong to different entities;
- there is no monopoly right inherent in a registered business name;
- registering a business name provides little or no protection against it being copied;
- registering a business name does not stop you being sued for copying or using a name that is similar to a registered trademark.
Business name registration v. trade mark registration Ireland
Business owners often confuse business name registration with trade mark registration. It can be worthwhile knowing that they are very different. Some business owners think business name registration under the Registration of Business Names Act provides brand protection, however it does not do this.
If you want protection of your name, logo, brand or trademark, then business name registration under the Registration of Business Names Act is not appropriate. Business name registration under that Act does not add any significant value to your name, and it certainly does not protect it in the sense of possessing the equivalent rights of registered title like property. Under the business names registration process, it is quite common to see different owners registering similar names.
Business name registration is no protection against being sued for copying a registered trademark
For example, about a dozen businesses are registered as names containing the term IKEA in them, and last time we looked there were around 20 using "Village Cabs" as well as 27 entities using "Little Treasures" in their names and
- 3,000 had "RESTAURANT" in the business name,
- 2,000 had "FOOD" as a business name,
- 1,000 had "CAFE" in the business name.
- so business name registration does not guarantee any exclusivity to stop others from copying a business name, or from infringing a business name, or to stop you being sued from the holder of an existing registered trademark.
To really protect a business name, look at turning it into a registered trademark
To protect a logo, brand or trade mark, then the most appropriate approach is to get it registered under trademarks legislation, the Trade Marks Act, 1996 or under Community Trade Marks Regulations, which is quite different to the business name legislation, but which is necessary for trademark protection.
Generally, business names are not brand names, although in principle, they could be brands. For example, John Smith trading as "News Here" is legally obliged to register the business name. The function of business name registration is to record the place of business, and the type of business involved. In effect, one it main functions is to notify consumers and regulators of the address or the place from which a trade or business is operating from. Not much more! Using business name registration under the Registration of Business Names Act has the following attributes:
- No protection for the business name.
- Does not stop someone copying the business name.
- Does not establish title
This is why all businesses should consider trademark registration, which can provide protection of the business name for the particular goods/services.
We have seen examples of business names registered under the Registration of Business Names Act, being forced to change or close, because the owner of a registered trademark could enforce protection of their name or brand.
The difference between business names and registered trademarks include: -
- business names do not have to meet legislative tests like registered trademarks.
- business names can describe the particular goods/services involved.
- business names can be corporate names, names of company divisions, and "trading as" names.
Apart from certain exceptions, the Trade Marks Act, 1996 indicates that registered trademarks cannot exclusively consist of signs that exclusively refer to the kind of goods/services or their quality.
You cannot successfully use business name registration to stop another party from using a similar name (visually, phonetically or conceptually).
In this regard, business names are not nearly as powerful as registered trademarks. Business owners should understand that registered trademarks are much more powerful and can convey significant benefits to holders, far in excess of the registered business name.
Registered trademarks obtain key special rights as a result of being registered, unlike registration of business names. Visit our page that highlights some of the features of registered trademarks.
Know about business names - Great Britain
In the UK, the legislation is somewhat different. Nonetheless, similar cautions apply there. This is mentioned in our business names UK page.
What you really need to know about business names
If you have a brand,
If you want to keep it safe and sound,
you need to get a registered trademark.