Difference between Trademark and Company Registration

A Company name also known as business name and trade mark are different aspects and have different propositions which shields and supports business in different ways. Wherein a business name identifies the business, registering the business name doesn't give one full rights over that name, which is done by a trade mark. The characteristic variance between the business name and trademark is the fact that a corporation can transact business with the same name as that of another existing business. Registration of the business name abstains others to use the business name within the same state but not in another state. For an exclusive use of the business name, trademark should be registered.

What is a Company Name?

The business name is ordinarily a name, a way to identify a business, entity, or individual. The business name is restricted to the states which have different laws on how different the names must be from other business names within the sates.

While some states have a feasible notion as to the business names and require the name to be easy, unique and easily identifiable.

For instance, filing of "Transamerica Airlines, Inc." is unobjectionable even though the name "Trans-Americas Airlines, Inc." already exists.

Other states impose stringent guidelines that restrict the name from being deceptively-similar, which confuses the customers as to which corporation is which and to prevent unfair competition.

For instance, filing of "Transamerica Airlines, Inc." would be too similar to "Trans-Americas Airlines, Inc." that would confuse and mislead consumers on which corporation is which).

Per contra, it is not a mandate as to the business name to be different from business names in other states.

In fact, a corporation can transact business in another state where its business name is being used by another company by registering for a "dba" (doing business as) or Assumed Business Name or trade name (depending on the state).

• A business name is the name under which a business is operated.
• Registration of a business name registers it nationally. One time registration is required even if trading in multiple states.
• Registration of a business name that is identical or too similar to a business name registered to another business or company cannot be done.
• A business name does not give any legal rights to that name. This means that if the business name is used by others for their business, no right accrues to stop others from using the name.

What Are Trademarks?

Trademark is a property, much the same as any other tangible property, wherein the owner of a trademark has exclusive rights to the trademark which abstains another individual from using the trademark.

A trademark is not circumscribed to a business name and is inclusive of a phrase, logo, symbol, design, image, or a combination of these elements which should not be identical to any other trademark.

A trademark is not circumscribed to a business name and is inclusive of a phrase, logo, symbol, design, image, or a combination of these elements which should not be identical to any other trademark.

On the other hand, a mark can use the same words as another mark as long as it is not deceptively similar. By transition or change in the font, the font color, addition of a different image, the mark may be trademarked by the federal government.

The trademark cannot slander or bring disgrace to the value of another trademark or obscure the consumer's perception of the trademark with another.

The application process of trademark is intricate because of the inclusion of the exclusive rights and goes under a scrutiny for a period which lasts for six months.

The property rights engrossed under trademarks can be enforced by both federal and the state government.

• A trade mark preserves legally a name and bars others from trading or transacting business with it.
• Once registered, the owner gets exclusive use of the trademark in the registered state.
• A trade mark is secured for an initial term of 10 years.

Registration

Trademark registration is an intellectual property registration under Trade Marks Act, 1999.

Trademark registration provides ownership of intellectual property, rights to exclusive use of the trademark and legal protection in case of trademark infringement. Words, slogans, business name, numerals and more can be registered under trademark.

The trademark symbol can be placed next to the logo or business name once the application is filed with the trademark registrar.

Company registration creates a separate legal entity or an artificial judicial person which enables the company to transact business on its own name and have property both movable and immovable property on its own name. The registration can be completed within 20 days.

Once a company gets registered, ministry of corporate affairs does not permit any other company to be registered with a similar name as per the Companies Act, 2013. 

However, name of a business can still be used only by others if trademark registration is not obtained.

Registration of a company provides protection against registration of another company with a similar or an identical name.

For instance, Astar Technology Pvt.Ltd.is a registered company then an LLP named Astar Technology cannot be registered, but Astar Technology can still be a name for a brand of a software.

It is therefore recommended that business name also be trademarked. For exclusive use of the business name it should be registered as a trademark.