Company name trademark infringement is a very expensive crime that many people don’t even know they commit until it’s too late. It takes a lot of work to get a business up and running, and just when you start to make money, the worst possible thing to happen is someone coming in and telling you that they own the trademark and now you owe them money. As a business owner, this is by far the worst thing that can happen to you and it happens to so many businesses as they are starting out and finally starting to make money that it just crushes those businesses. With just a little bit of work and research when you are starting a company, you can easily avoid these mistakes and make a lot of money, and keep it, in the long run.
Searching for trademarks
Before you name your company, you should do a little bit of research on what trademarks are already out there for companies of similar names. If your company name is really close to another company’s trademark, then there is a possibility for infringement and conflicts may arise as time goes on. Your company’s name and the products that you sell are what customers see when they buy from you, so making sure that you have a good company name that isn’t infringing on another company’s trademark is super important and is getting harder to find every single day. The first one to use the trademark is the one that gets to keep it, and they can sue if someone else infringes on that trademark.
Registered trademarks have a lot of legal backings to them, and you will be protected under the law if someone decides to infringe on the trademark. When you are creating a company, then it is highly recommended that you register it under a trademark. This can also help you as they can easily find out if you are infringing on someone else’s trademark, but before you register, you should have already done your research.
Many companies, especially those that do not have registered trademarks, will hire name monitoring services that will give you notifications of companies that register with similar names, that way you can shut them down if they are going to be competing or damaging your company’s name. There are many different things that people can do that can damage your company’s name, such as registering a domain and changing one character and posting obscene content. While this might not directly hurt you, it can hurt your brand as people can easily confuse you with that domain. Trademark monitoring is super important and if you don’t have it, you are at risk of competition and confusion with other companies.
Penalties for company name trademark infringement
Company name trademark infringement is pretty serious and can hurt your company greatly if you accidentally infringe on someone else’s trademark. The biggest thing that can happen is you have to change your company’s name to something else, which can lose a lot of clients if they aren’t informed of the name change. Other penalties for company name trade mark infringement can include having to pay the original trademark owner large sums of money for any damages that you might have caused in taking business away fromthem through the use of their name.
When you are starting a company, make sure that your company name is easy to remember, represents the products or services that you sell, and most importantly, avoid company name trade mark infringement.