A “trade name” is generally defined as the name under which a business operates. A trademark, on the other hand, is a word, phrase, symbol, logo, or other visual or audio device that identifies the commercial source of goods or services. Because so many businesses trademark their trade names, there is a significant overlap between trademarks and trade names.

However, they are not the same, and careful attention to the legal differences is needed. For a trade name, the legal requirements generally come from city, state, and local laws. As noted, a trade name is the name a business chooses to do business under. This is often called its “doing business as” name. This is generally abbreviated as “d/b/a” or “DBA.” Many state and local laws require a public disclosure of d/b/a names, and often, these disclosures must be “of record” by being recorded at the local county recorder’s office. As an example, let’s say that Josephine runs a small business called “Anita’s Nail Salon.” But, the official name of the corporate entity is “Josephine Omnibusiness, Inc.” Thus, Josephine’s business would be called: Josephine Omnibusiness, Inc., d/b/a “Anita’s Nail Salon.”

If there was a lawsuit against the nail salon, the plaintiff would sue using the full name of Josephine Omnibusiness, Inc., d/b/a “Anita’s Nail Salon.” Likewise, if the business signed contracts or borrowed money, Josephine would sign the relevant documents as the CEO of Josephine Omnibusiness, Inc.

Now, as for trademarks, they have their own legal requirements. As noted, trademarks are about an association in the minds of consumers about the source of goods and/or services. Legally, to be a trademark, it must function as a trademark in the sense of creating this association in the minds of consumers. Trade names do NOT need to do this for legal validity and can be obscure and unknown in the minds of consumers.

Of course, many businesses want their trade names to become trademarks. As such, businesses will engage in marketing, promotion, and advertising to create an association between the trade name and the product/service in the minds of consumers. In this manner, a trade name can become a trademark. Thus, in our hypothetical, Josephine would probably not try and create a trademark with the name Josephine Omnibusiness, Inc. Rather, she would try and establish “Anita’s Nail Salon” as a trademark.

Note also that trademarks are a much larger category of things than just trade names. As noted, trademarks can be logos, marks and devices like the Nike “Swoosh” or the McDonald’s “Golden Arches.”

Trademarks are also different in that they have significantly more legal protections than trade names (at least when trade names do not function as trademarks). Trademarks are protected from infringement. This means that a third party cannot use a trademark without permission from the owner of the trademark. If they do, they can be sued for trademark infringement.

Further, there are at the state level and the federal level, registration regimes for trademarks. At the federal level, trademark owners can file applications to have their trademarks registered. This enhances the legal protections and serves as a public record that the trademarks exist and are in use.

Contact the Trademark and Business Attorneys at Revision Legal

For more information, contact the experienced Trademark and Business Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.