Can Two Companies Run Businesses with The Same Name

The company you form as an entrepreneur affects your legal entitlement to your business, including your business name. The names of corporations are quite important. They serve as important marketing tools as well as brand statements. Many companies, large and small, spend a lot of time and money promoting their names so that customers recognize and remember them, even if they don’t register their trademarks. It can be unpleasant to discover that another company is utilizing “your” name. Assume, however, that your business name is identical to that of another incorporated company. There may be grounds for a legal dispute in that instance, and you may be unable to use the business name legally. Consider your buyer if you’re worried about your company having the same or similar name as another company and you’re unsure about the rules. The claim to a business name is largely based on customer confusion and whether or not having two names that are almost identical will bother them. There may be no issue if you and another company have similar names but are not in the same industry or field.

Let’s imagine your business is in the technology sector, and another business with the same or similar name is in the construction sector. In this circumstance, the chances of a consumer misunderstanding are slim. If two companies operate in the same area or industry, such as two clothing brands with the same name, it could be a problem. The “name first” criterion is another thing to consider. If your company was the first to use and register the name, you may be able to establish legal ownership. If your company is the first to trademark a name, you will have a stronger claim to it. The Trademark Electronic Search System, or TESS, of the United States Patent and Trademark Office allows anybody to search trademarks for free. While searching for straight name matches is rather simple, searching for trademarks can be difficult, and you may require assistance to conduct a thorough search. To be comparable, marks do not have to be identical. If two names seem or sound alike, for example, they are likely to be similar. While checking trademark status, look for alternate spellings and word ends, as well as precise matches. It is possible to have similar registered trademarks if the goods and services are unrelated, such as Delta faucets and Delta airlines. Clothing and shoes, as well as coffee and croissants, are examples of connected goods and services that are often sold together. Registering a trademark is one of the choices. It gives you trademark rights to your business name, as well as the legal capacity to sue for trademark infringement on a provincial or federal level if necessary. Make sure you have the necessary trademarks and incorporation for your business name to safeguard your brand. For registering trademarks you can also take help from an intellectual property lawyer to the legal processes smooth and easy.

Cease and Desist Letter:

As a warning, send a cease-and-desist letter to any company that uses your name, trademark, or domain name. It will show that you are aware of trademark law and that you do not want the word to be used.

Legal action

If they do not answer correctly and the violation continues, you may take extra-legal action to prove that the Infringement has caused your company harm. You, as the injured party, may be entitled to damages depending on the severity of the infringement.