People often confuse a trade name with a trademark but while they are related, both mean different things. Here are the key differences.
To legally start a corporation or a company you must file paperwork with the state and include your organization’s name. This name becomes your business’s official identification followed by the type of legal entity registered (such as a corporation or a limited liability company), usually abbreviated in the form of Inc., Corp, or LLC. It is the name under which your business is registered for official government purposes such as taxes. However, if you want to present your customer with a different name, then you can do so by registering a trade name. Trade names can be registered even if it is a non-incorporated proprietor business (self-employed/business owned) this is generally known as DBA name (doing business as).
According to Puerto Rico law, a trade name means “the sign or name that serves to identify a person in the exercise of his/her entrepreneurial activity and distinguishes such activity from other identical or similar activities”. The registration of the trade name in the Department of State of Puerto Rico is optional and confers the registered owner the exclusive right to use the same for commerce in Puerto Rico.
While a trade name refers to the company’s official name presented to customers, a trademark provides a company’s brand of goods and services with legal protection from others.
According to the US Patent and Trademark Office, “[a] trademark can be any word, phrase, symbol, design, or a combination of these things that identifies your goods or services. It’s how customers recognize you in the marketplace and distinguish you from your competitors”.
In essence, a trademark is the sign that serves to distinguish in the market the products or services of your organization (under a particular trade name or not) from those of others. They prevent competitors in the same (or similar) industry from using your trademarked names. The system protects producers against unfair competition from other producers who try to take advantage of the intangible asset and good reputation obtained by the trademark owner without compensation. Generally, the owner only enjoys the exclusive right to prevent third parties from using the trademark in respect of the same products for which the trademark was registered or of products.
Trade names can coincide with the corporate name of a company and with the brand used to identify its products or services in the market, although they are independent. An example is Tesla which is both a commercial name for good and services (cars) and its corporate name (Tesla, Inc.). You’re not required to register your mark. You are the owner when you start using it with your goods or services. You are legally protected, but your rights only apply to the geographic area in which you’re providing your goods or services. By not registering you are missing on broader rights and protections particularly when a competitor challenges the mark’s ownership. If you seek nationwide rights, you’ll need to apply to register the trademark with the US Patent and Trademark Office.
You’re not required to register your mark. You are the owner when you start using it with your goods or services. You are legally protected, but your rights only apply to the geographic area in which you’re providing your goods or services. By not registering you are missing on broader rights and protections particularly when a competitor challenges the mark’s ownership. If you seek nationwide rights, you’ll need to apply to register the trademark with the US Patent and Trademark Office.
Organizations can both register their business name and trademark in Puerto Rico under, the Trademark Act and the Trade Name Act. Registration are done by the owner or representatives of marks and tradename electronically by filing the application online with the Puerto Rico Department of State. Products registered and protected as trademark are described in detail in the registration of the trademark in question. This process is similar in other states.
Marks and names can be registered even if the organization is yet to conduct business. In such cases, registrants file an “intent to use”. The owner of the mark must use the mark in commerce and file a Declaration of First Use within three (3) years of the filing date. In the case of tradename, the owner must certify that the name is used in commerce within the five (5) years of the registration date.
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