Trademark law can be a tricky area to navigate, especially when it comes to similar products with similar names. If you choose a name that is too close to that of a competing company, they may accuse you of infringing their trademark rights. This can be a difficult situation to navigate, especially if the two companies are based in different states and operate in different industries. If you believe that a confusing similarity exists between your company and another, and that this similarity has caused confusion or is likely to cause it, you can take legal action.
The most common outcome is for a court to require one of the companies to stop using that name through a court order. In situations like this, where neither can prove their superiority, courts will ultimately adjust one of the brands to reduce the risk of confusion and allow both companies to continue operations with minimal interruption. The risk of confusion is usually determined by factors such as the similarity of brands, the relationship between products or services, and the geographical location of companies. Since the first person to use the company name gets the go-ahead, trademark registration would be a completely accurate database of who owns what brand. It can also show how it can affect your company by confusing your customers about the association between your company and another entity that uses the same name. If you think that your company and that of a competitor have similar names that may lead to confusion, and you want to protect your name from being used by another person in the future, contact a Foster Swift lawyer for more information.
Even if the two companies work in the same industry, there is not likely to be confusion between the two companies if the nature of that industry makes it unlikely that a consumer will accidentally negotiate with one company when they intended to negotiate with the other. In addition, protecting your company's nicknames is just as important as protecting your official name. To determine if your business name is at risk, you must determine if your name or the first few words of your name are already in use. If so, visit the state's business name database page and use the “search by entity name” field to enter your company name and perform the search. Your company knows the value of its name and, like any other asset, must take steps to protect it from being used by another person. To do this, you must show that your company and the other company that shares the name have very similar or related business activities, and that the name causes confusion among customers.
If this is true, then there is a possibility that consumers may be confused as to which company they are dealing with. The Michigan Supreme Court explained that a word acquires secondary meaning when the general public associates that word with a specific company so closely that its use by another can create confusion about whether the companies are related or not. If this is true in your case, then you may have grounds for legal action. Ultimately, if you believe someone is infringing on your trademark rights by using a similar business name, it's important to seek legal advice from an experienced attorney who can help you protect your rights.
