Establishing A Company Name In The Legalized Way
Legal aspects surrounding companies demand serious attention and vital consideration. When coming up with a company name, small business owners must look into the trademark and the legal issues that might pose a problem in the name of the brand or company. Therefore, it is important to consider the legal implications before prioritizing a specific name for the brand. Company owners must be ready to fight trademark infringement filed by other companies, without their knowledge.
But before coming into such discussion, one needs to know the meaning of the word “trademark” in the world of business. Trademark is quite often used in business which is why it has lost its real meaning. It is nothing but an indication of a brand. By means of a trademark, people can find out the source of a product or service. Therefore, trademarks are significant for brands and are important in deciphering its meaning.
A company has its brainchild in the form of business names, product names, logos and brand names. Through these identities, it creates a distinct image of its products and services, and more commonly of itself. By attaching a trademark, companies assure that these symbols are not used by any other companies to defame them. However, in the real scenario, since thousands of companies compete with each other, many tend to possess identical trademarks without one’s knowledge. This gives rise to legal battles between companies. Whereas large and giant companies have funds to fight these battles, small companies more often surrender. Some legal issues in company name trademark are as follows:
- Often, there are brands and companies who operate in similar line of business offering same products and services. Along with such similarities, companies can also have same outlets and target audience. In such cases, the similarities are tightly weaved and the company names sound similar. This also creates great confusion among the customers. Courts therefore give their verdict looking after the nature and type of business.
- There are legal cases concerning the strength or weight of the trademark. According to the trademark law, the trademark of a company that includes but is not limited to its name, the company or product logo and the symbols and designs used; are often said to be the mark. These marks could be subjective, suggestive, descriptive or generic. It ranges from strongest to weakest. Stronger the mark pertains to the business, tighter is the protection of the mar under law.
- Another legal issue includes the proof that companies need to submit to show actual evidence that their target base of consumers are confused about the company with other companies. There have been legal battles where customers post their feedback online and offline and state about their confusion. This matter of confusion is used in the court to favor the cause of the complaining party.
- Often the marketing media of companies happen to be similar, which gives rise to disputes. Courts evaluate the websites and assess the mediums of communication.
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