Trade Name vs. Trademark: The Main Differences

As a trademark attorney, a common problem I see is that business owners think having an LLC or corporation set up is the only step they need to take in starting and protecting their business, which is where trade names vs trademarks come into play. 

Trade names and trademarks serve different identification purposes and different legal purposes in your brand, but it’s easy to get mixed up about what each of them really means. This guide from a trademark attorney will break down trade names vs trademarks, so you can know when to use each in your business and what each provides. 

Trade Name vs Trademark: The Definitions & Examples of Each

Trade Names: What They Are, Examples, and What to Know About Them

A business’s trade name is its legal operating name. It’s also commonly known as a DBA (doing business as) name. It can also be the public facing name of the company if used consistently for branding purposes.

The trade name is what people know your brand as and how they recognize it. For example, Nike’s legal trade name is NIKE, Inc.

When you’re starting your business, you may file an entity as an LLC or corporation, or create another business structure, and determine the name you want to operate under. If you need guidance on naming your business, you can reference a post I made with a brand designer, Early Object Co. 

It is important to understand that registering your trade name does not automatically protect you from someone else using the same or a similar name. When you register a business name with your state, you are generally checking the state’s records to determine whether the name is available for registration. But state registration is different from trademark protection.

Keep in mind that even the state where you form your entity has limitations on choosing a name that is the same as, or too similar to, another business name already registered in that state. However, that does not necessarily mean the name is available for you to use from a trademark perspective.

A business name can be available for state registration and still potentially infringe someone else’s trademark rights.

Trademarks: What They Are, Examples, and What to Know About Them

A registered trademark provides federal trademark rights that can give you exclusive rights to use your brand name in connection with the goods or services covered by the registration.

While a trade name is the name your business operates under, a trademark is a tool used to protect the brand itself, including brand names, logos, slogans, and other source-identifying elements, from unauthorized use by others in connection with related goods or services. In other words, registering your business name and protecting your brand are two different things.

Common examples of trademarks include Apple’s logo, Popeyes’ “Love That Chicken” slogan, and Louis Vuitton’s iconic monogram.

These trademarks help consumers identify the source of the goods or services they’re purchasing. Unauthorized use of a trademark, or something confusingly similar to it, can potentially lead to a claim of trademark infringement.

When looking at a trade name vs trademark, know that these two things are not registered at the same time, and they have different processes. To learn how to register a trademark, see this guide, and see my services as a trademark attorney here to see how I can help you. 

A trade name can be an important step when establishing your business, particularly if you are forming an entity to separate your personal liability from your business’s liability. However, registering your trade name does not mean you own exclusive rights to the brand.

Without properly protecting your brand name, you could face legal disputes, unexpected expenses, and the headache of having to rebrand later. That’s why it’s important to consider trademark protection early in the process, before you invest significant time and money into building your brand.

Creating a Trade Name and Trademark Strategy For Your Business | Lane Law

The best thing you can do to make sure your business is legal and protected is to work with a business attorney. I know how much time, effort, and energy goes into building a business, and my goal is that you never have to build it from the ground up again when it could’ve been protected with a few steps. 

You can book a discovery call with me here today for guidance on trade names vs trademarks and how to be sure your brand is protected at the highest level.