Trade names
A trade ame is a name that is used to identify a product or sercice. The name is also knwn as business name or brand name. In general it can be said that the trade name is the name under which a company does its business. This name is useful for others to recognize the product or services offered by the company by its trade name. Other things such as commodity, service or process is also identified through the trade name. This name also distinguishes the company from other operators in the field. The trade name is essential for any organization even if it is not a business establishment.
The non-profit organizations, religious bodies, and such entities also have their own trade names so that they are distinctly identified from others by their unique trade names. The trade marks are different from trade names. They are used on the products or their literature and communication materials for identification. They are logos or symbols which are prominently displayed on the products, letter heads and such material used the by company.
Benefits of Protection of trade name
The trade name regulations are created for the purpose of protecting four different interests of businesses. The laws give protection for the investments made by the original company by way of money, intellectual property, and creative work. The unauthorized use of a reputed company?s trade name in a deceptive way can spell severe damage to the original company that has the legal right to use the trade name, by causing business loss. Secondly, the trade name infringement destroys the goodwill and trust of the customers that the company has built all along.
The substandard products sold through trade name violation tarnishes the image of the real company as the consumers are made to believe them to be the products are from them. This law protects the company from losing its goodwill and reputation and fair business practices gained through years of honest, original work. The third purpose served by the regulations is that they ensure that the trade name is etched clearly in the minds of the public and stays stable through the superior quality of the products or services of the company owning the right to that particular trade name. By emphasizing that the trade name reflects the superior quality of the product, the consumers recognize a quality product by its trade name. This is the fourth advantage of the law is to motivate the companies to engage in healthy competition through fair practices.
Obtaining and protecting the trade name
Any business or organization has to follow these three steps to get and protect it from being misused by others:
1. A thorough search should be conducted to find a trade name which is not already in use by another firm. If such a name is used, it is punishable under the law. The trade name therefore should not be a similar word or similar sounding and or similarly spelt word. Through this search one can avoid repetitive or similar names. Names which are undesirable can also be avoided by searching for a suitable trade name. The trade name directory and guidelines should always be consulted before embarking upon the task of registering a trade name.
2. After selecting the trade name which is not in use already, the trade name has to be registered with the Trade name Registration Authorities, which works under Government department. This name is a unique name which does not resemble any other company's name in anyway is vital to its success and authenticity and reputation.
3. It is essential to monitor and protect the trade name which is registered with the Government department. By knowing the trade name rights and the regulations governing trade names and about infringement the organization can protect the trade name from misuse. This misuse can cause severe damages not only monetary but also loss of image and goodwill. The company should be watchful and seek legal recourse if their name is used in any manner that affects their business or reputation. Therefore it is essential to keep a constant vigil on the misuse of their trade names.
Trade names and the Law
The trade name laws are framed under the common laws for prevention of unfair competition. There violation of trade names and trade marks are clearly distinguished in the common law. These laws stipulate that the use of the trade names or trade marks should be completely different from the ones used by a present company and should not resemble it in any way, through appearance, size, and shape or color etc.
The laws dealing with trade name violations are very stringent and stipulate severe punishments for infringement of trade names and are defined very clearly. If any dispute arises out of such infringement, the original owner of the trade name has to prove its ownership and right to that particular trade name with proof and is still operating with the trade name. He has to prove that the other party has violated the law by using a similar trade name in a deceptive manner. The right to use a certain trade name is given to the first party who approaches the department for registration with that trade name. In some states, even without registration of the company in the particular trade name, it can acquire the right by public use, which proves beyond any doubt that the company has gained reputation in the public eye through the continuous use of that trade name. Such a convincing demonstration can make the authorities to award the right of protection of the trade name to the company.
Federal law dictates that only through prolonged and continuous use of the individual name as the trade name and gaining public acceptance can a company have legal protection of trade name. Irregular and intermittent use of trade names cannot be sanctioned the right of protection under the law. After the company has proved that it has the right to the trade name, it should prove that the other party has fraudulently used a similar trade name to cheat the public by making them believe that they are the original company.
Similar or same trade names used in different fields of business or activity do not qualify for this protection as these two can co-exist without any problem as they do not do the same business and therefore do not affect the other ?s business in any way, and that there is no confusion in the minds of public about their trade names or businesses. It is also permissible under the law to have similar trade names in different geographical markets and the new company does not affect the goodwill or business of the original company. Fancy and uncommon trade names get better protection than the most common or widely used names.
Other Articles
