What’s the Difference Between A Trademark, Service Mark, And a Trade Name?

(This article originally appeared on sarahsshepard.com)

When it comes to starting a business, often one of the most exciting, and important things to do, is choosing a name. Akin to naming a child, this will be the name the business you build is known as and how people will recognize it.

So, is it as easy as just choosing a name that sounds catchy or clever? Actually, there’s a lot more that goes into it, and choosing the wrong name can have certain legal ramifications.

When choosing a name, you should consider things like Trademarks, Service Marks, or Trade Names. The reason for this is that your chosen name might infringe on another organization’s trademark which can cause you a lot of headaches, and costs, in the future. Not only that, but you should also consider them to decide which will effectively protect your intellectual property.

So, what do all these terms mean? It can be confusing, but with this guide, we aim to demystify the differences between these three terms and give you some guidance on which may be best for you.

What Is A Trademark?

So, what exactly is a trademark? Simply put, a trademark is specifically a name to identify a business. It can be any word, name, symbol, or device, or a combination of these which is used or intended to be used to identify and distinguish your business from that of your competitors. Here, think of things like Google, Apple, or Samsung. So, in simpler terms, your trademark is your brand name.

For a valid trademark with nation-wide use, you’re required to register it at the federal level. This then guarantees you the exclusive use of the trademark and that it wasn’t already being used by another business. Also, it provides legal liability protection against someone who subsequently claims that you’re unlawfully infringing on their trademark.

Now, this all may sound confusing, but our Huntsville trademark attorneys will be able to assist you with the registration of your trademark.

What Is A Service Mark?

Similar to a brand name or logo, a service mark identifies the provider of a service. Also, like a trademark, a service mark may consist of a word, phrase, symbol, design, or some combination of these elements. It also protects you against competing businesses from using names and insignias that could potentially confuse customers.

Because of these similarities between a trademark and a service mark, the term trademark is commonly used to describe both forms of intellectual property. The difference, however, is that a service mark is specifically applicable to something intangible that is provided by one for the benefit of another.

This can be, for example, a major carpet cleaning company that uses a service mark in its marketing efforts because it performs a service rather than offering a physical product. So, if your business is going to provide a service to your customers you may be better off by registering a service mark rather than a trademark.

Like a trademark, though, a service mark should also be registered to give you the protection you need. If there’s still any doubt, you can contact our local Huntsville intellectual property lawyer’s office for more advice on service marks.

What Is A Trade Name?

Although it sounds very similar to a trademark, there is an important difference between the trade name and the trademark of a business.

A trade name is simply the official name under which your business will do business. As such, it’s commonly referred to as a doing business as (DBA) name.

Registering a trade name is an important part of establishing your brand and recognition in the marketplace but, unlike trademarks, it doesn’t provide legal protection against the use of the name by someone else.

This, in effect, means another business will still be able to use your brand name in its business. Also, unlike trademarks or service marks, most states require registration either with the state government or through a county clerk’s office. In Huntsville, this may be done through the Alabama Secretary of State’s office.

Final Thoughts

Knowing the difference between these terms is essential when you’re choosing the name for your business and you want to establish your brand in the market. You should understand the protection and implications each gives you as well as the process required to register them. This understanding will allow you to choose the right one, considering your goals and needs.

If you need more information about these concepts or want to know how you would go about registering them, feel free to contact us and our Alabama business lawyers will be more than happy to assist.