Trademark Myths That Confuse Small Business Owners
"The heart of the intelligent acquires knowledge, and the ear of the wise seeks knowledge” (Proverbs 18:15)
The name of your business, slogan, and products can feel deeply personal. Perhaps it reflects your mission, your creativity, or the values you hope to bring to your work.
But when it comes to trademarks, a few common misconceptions can lead business owners to make costly assumptions. Here are five myths worth clearing up.
Myth No. 1: “If I register my LLC, I own the name everywhere.”
False.
Registering an LLC generally means that your business entity can use that name under the rules of the state where it is registered. It does not automatically give you trademark rights throughout the United States.
Business name registration and trademark rights are different things. In fact, another business may have trademark rights that conflict with your use of a name, even if your state allowed you to form an LLC using it. Before becoming too attached to a name, it is wise to search for potentially conflicting trademarks and business uses.
For a helpful starting point, the U.S. Patent and Trademark Office's trademark basics guide explains the difference between business names, trademarks, and other forms of intellectual property.
Myth No. 2: “If I bought the domain, I own the trademark.”
False.
Purchasing a domain name does not automatically give you trademark rights. A domain name and a trademark serve different purposes: A domain directs people to a website, while a trademark identifies the source of particular goods or services.
In some circumstances, a domain name may also be used as a trademark. But simply registering a domain does not create trademark rights, and owning a domain does not necessarily prevent another trademark owner from challenging your use of it.
So before you build an entire business around a domain name, do some homework.
Myth No. 3: “You can trademark any word or phrase.”
False.
A trademark can be a word, phrase, symbol, design, or combination of these things, but not every word or phrase is legally protectable as a trademark.
For example, a term that is generic for the goods or services being offered generally cannot function as a trademark for those goods or services. Other marks may be difficult or impossible to register because they are too descriptive or because they are confusingly similar to an existing mark.
In general, more distinctive and creative marks tend to be easier to protect.
Myth No. 4: “A trademark gives me total ownership over a phrase.”
False.
Owning a trademark does not mean you own a word or phrase in every possible context.
Trademark rights are connected to the goods or services associated with the mark. The central question in many disputes is whether another use is likely to cause consumers to be confused about the source, sponsorship, or affiliation of the goods or services.
That means two businesses may sometimes use the same or similar words without infringing on each other’s rights, particularly when their goods or services are sufficiently different. For example, “Delta” could be used by one company for faucets and another for airline services because customers are unlikely to assume the two businesses are related.
Myth No. 5: “I need a lawyer immediately for every trademark dispute.”
Not always.
Receiving a concerning email or discovering that another business is using a similar name does not automatically mean you are headed to court. Depending on the situation, a business owner may first need to gather information, review the other party’s trademark rights or determine whether there is actually a meaningful likelihood of confusion.
That said, some situations do warrant prompt legal advice. A trademark application refusal, a cease-and-desist letter, a lawsuit, or a dispute involving a significant part of your brand can have serious consequences.
It is important not to panic (but also do not ignore the issue).
Understanding Trademark Basics Helps You Avoid Confusion
As Catholic women and business owners, we are called to approach our work with diligence and integrity. We cannot reasonably be expected to hold expertise in every area of the law. But we can take the time to seek knowledge, ask good questions, and recognize when professional help is needed.
As Proverbs 18:15 reminds us, “The heart of the intelligent acquires knowledge, and the ear of the wise seeks knowledge.” Understanding the basics of trademark law will not make every business decision simple, but it can certainly help you avoid preventable mistakes and evaluate potential problems.
Alyssa Grasinski is a legal writer, editor, wife, and mother who is passionate about helping businesses communicate clearly. She earned her Juris Doctor in 2019 and now works with law firms and business owners through her writing business, Claritas Vox, providing blog writing, website copy, ghostwriting, and editing services. Alyssa and her husband, Michael, have five children on earth and one in heaven. She can be reached at alyssagrasinski@gmail.com or https://www.claritasvox.com/