Can You Have Similar Business Names as Someone Else? A Guide on Business Name

Napoleon

— 8 min read
Can You Have Similar Business Names as Someone Else? A Guide on Business Name

A business name is an identifier that encapsulates your brand essence, offerings, and voice. However, in the business world, the most frequently asked question is whether a business can have a name similar to another. Is it possible for two companies to operate with identical business names?

This guide explores all legal requirements around business names and whether two or more businesses can coexist using the same name.

What's a Business Name?

A business name is an essential legal name for the company, since customers and clients can identify the entity through it. It distinguishes your business from others and assists in creating brand recognition. 

Understanding the difference between legal business names and DBAs (Doing Business As) is crucial.

Registered names are the official names companies use during incorporation with the official registering bodies under which they legally trade. DBAs are also called trade or fictitious names that businesses can use, but are not their legal names.

When Can Businesses use Similar Names?

There are circumstances in business that can use similar names, including:

1. When operating in different industries and geographical locations

Two business organizations may use the same name entirely in different industries or regions. This is because they operate in various niches and target different consumers, so there is little likelihood of confusion among their customers or competition.

2. When you're a sole proprietor

Consider your business structure when confronting someone with an identical or similar business name. If you are operating as the sole proprietor, the name of your business belongs to you but does not have legal protection. Filing for a DBA offers local protection, meaning other people in your location cannot use the name.

Legal action against another business using your name is more complex if you have not applied for a trademark. You may have to alter your business name or select a new kind of entity and register it. If the other business has already applied for or been granted a trademark or a name registration in any state, you will want to choose another name.

3. Differentiating factors

Two businesses can share similar names if they have distinguishing factors that differentiate them. These factors include variations in target audience, business models, product audience and branding elements. The primary factor is ensuring customers easily differentiate between these two businesses.

For example, "Green Leaf" may be a vegan restaurant for eaters interested in healthy foods, but it is also a gardening service business for private homes. Strategic positioning and factors related to the target customer base are influential tools that instill investor differentiation between enterprises.

Two businessmen are allowed to use the same name if they have agreed to or have come to an agreement. This is commonly exercised when one business permits the other to use essentially the same name or an equivalent one. It is essential to clear all the prospects and set the proper paperwork and legal documents to avoid such situations.

When considering a business name close to the existing one, consult a lawyer or trademark consultant to ascertain conformity with local laws and regulations. Becoming familiar with possible situations connected with business names helps you make the proper decision and register the enterprise without facing possible conflicts.

When Can Two Businesses Not Use the Exact or Similar Business Names?

Though companies may be known to have similar names, this is restricted in some cases. Let us discuss cases where using a similar or identical business name is prohibited.

1. Trademark Infringement

Employing a name for another business that has been trademarked is risky, as it can lead to legal battles. Trademarks are exclusive legal rights given to the owner to safeguard its business from competitors and eliminate market confusion. It is advisable to conduct proper trademark searches to ensure that you haven't violated others' intellectual property.

2. Reputation Damage

Suppose the name sounds similar to the other business involved in scandals or has a bad reputation. In that case, the sound-alike name can also bring a negative reputation to your business. Maintaining a difference from negative associations relevant to your brand is necessary for long-term development.

3. Consumer Confusion

Picking a name similar to or even the same as an existing business in the same industry can deceive consumers, harm the brand, and be unlawful. Differentiation is vital for the customers' clarity and fair competition.

4. Regulatory Compliance

There are some special requirements for naming companies in some industries. There may be unique traditions that require the use of legal names or specific names for certain positions for various reasons. Failure to observe the laid down procedures attracts penalties and legal repercussions.

5. Deceptive Practices

Registering or choosing a name close to or the same as another company to defraud the public or ride on the owners' success is wrong and unlawful. It may cause legal consequences, turn the customers away from your brand, and tarnish the brand image of your business.

Why is it Necessary to Check if a Business Name is Taken?

There are legal and practical considerations to selecting a unique company name. Here are reasons why it is crucial to check business name availability before you get attached:

You're liable for legal suits by registering or using a name that embodies the copyright of another business. Aside from legal concerns, it is expensive to have your business renamed. It also requires many changes, including for your business cards, business brochures, corporation signs, domain names and social media account handles.

2. State Law Compliance

Every state requires that a proposed new business name should not be similar to or very close to the existing business. For example, if somebody registers a business under the name "Drop Balloons," it will be unlawful for another company to use a name similar to "Drop Balloon Supplies."

3. Brand Differentiation

An excellent business name should be specific to your business and not easily confused with other companies or competitors. The preferred name makes your brand unique from other brands since it will define your brand.

How Do I know if My Business Name is Taken?

When you begin choosing a name for your business, you will quickly discover no one source of business names to turn to. To identify businesses with names that might overlap with your chosen name, you'll need to research several sources:

1. Check Do Business As Names

One way to check the availability of a business name is by checking DBA's registered under your desired name. Search the name through local and state government databases or use appropriate agents to verify if businesses use your chosen name.

2. Check Trademark Company Names

Trademarks offer exclusive rights to business owners and protect brand identity. There are several large databases you can search to see if any other entity has an existing claim to a business name you're considering:

It will therefore be helpful to conduct a manual search on the internet.

While searching means going through every database can be helpful, nothing compares to a thorough internet search. Depending on your industry and market, thorough research may vary, but the following sources will aid most searches:

  • Google: This is the first step most people employ in an internet search.
  • LinkedIn: Since there are no restrictions on developing business profiles, LinkedIn helps identify the businesses that use DBAs.
  • Yelp: To companies established in a particular region, Yelp reveals the currently present businesses and their trade names in a specific area.
  • Crunchbase: Crunchbase tracks start-up funding from the beginning and can assist you in finding the name of the start-up that is still unavailable on the online resources or official registers.

What Can I do if a Potential Business Name is Taken?

If your business name is already taken, you have two options:

  1. Choose another name
  2. Acquire the rights to the existing name

You can achieve this by contacting the current owner to buy the name and transfer the ownership via the Secretary of State's office.

Alternatively, you can create a licensing agreement to use the desired name while the owner retains ownership. This may include paying a fee or royalty and always entails using a lawyer to draw up and sign the document. Take your time and seek legal advice before making the next move.

How can I Protect My Business Name?

Here are ways you can take to protect your business name.

1. Create a Corporate Entity

Register your business with the Department of Commerce in your state to safeguard it from duplicity from local players and competition from other states. It is not mandatory for one to go to this extent for one to do business. But it is helpful since it is the most legal thing to do and sets a very high bar for people planning to use your name.

2. Make Your Branding Memorable

A strong business brand guarantees that the business name is well ingrained with the services provided, thus eliminating chances of imitations.

 3. Trademark Your Logo and Business Name

You should protect your business by registering the business name, logo, and slogans as trademarks. Although there are certain expenses, the advantages are rather evident–those who try to take advantage of you and discredit you with their low-quality products will not succeed.

Use the professional services of intellectual property lawyers to handle documents, register business names, and combat illegal use by other people. Engaging professional help is a noble way of creating awareness and exercising proper conduct in IP matters.

5. Register Domain Name

Select and register a distinctive domain for your business to easily brand your online presence. This minimizes customer confusion with a similar website and benefits your brand.

6. Register Your DBA Name

DBA is the name under which you intend to carry out your business, and it is good to register it after incorporating an LLC, since state and county laws mandate it. It also helps prevent others from having the same name and assists in the development of easily recognizable branding items.

7. Purchase Diverse Domain Extensions.

Purchasing domain extensions such as ".net," ".org," and ".io" and variations of your misspelt name. Setting up 301 redirects to capture traffic from these domains ensures your customers visit the appropriate site. Renew domains yearly for start-ups and after a couple of years for any established business.

8. Set up Social Media Accounts.

Register your business on the major social networks before you start your marketing, even if you do not intend to use the social account immediately. This helps prevent others from appropriating your name, keeping your online identity safe.

How can I Settle a Business Name Dispute with Another Company?

If you find another business using your business name, domain, or trademark, send them a cease-and-desist letter to prove that you are conversant with trademark law so that they stop. If they do not comply, take legal action to address the infringement and, where it has impacted your company, seek the related damages.

With this knowledge of naming, giving, and protecting your brand, you can proceed further in entrepreneurship.

Can I protect My Domain Name?

Registration and trademarking of domain names are essential, especially for businesses that sell their products online. The principle of trademark protection relevant to company names is also valid for domain names. If another business adopts the same domain name, you may sue for trademark infringement, while they can sue you similarly.

One of the most critical steps in domain name identity is buying the domain and incorporating it into your logo, packaging, and advertisements to establish a connection between the name and the business and discourage competitors from using it.

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Final Thought

Whether you have a business name similar to someone else's can be complex because it depends on certain factors and legal considerations. Although businesses can coexist using the same name in certain circumstances, you must navigate these scenarios carefully to prevent reputational damage, legal conflicts and confusion.

To protect your business, register your business name, set up social accounts, purchase domains and trademark your business slogans and logo. By using the above steps, you are sure your business identity will remain distinct and legally protected.

 

 

 

 

 

 

 

 

 

 

 

 

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