Company VS Trademark registration - What is the difference?

A very common question we receive from newly founded companies is why they should register a trademark even though you already have a company registered with the same name. What is the difference?

Let us say that you have created the company with the name “xxzzyy” which is registered with your local government – great! But what does this mean in terms of protection? This means that you own the sole rights to the company name “xxzzyy” within your defined industry and country.

It means that if someone tries to register a company name that is similar to yours and within the same industry, you can prevent them, which is excellent for clients since they will not be confused by similarly named businesses.

But what would happen if another company tried to trademark the name “xxzzyywithin your country? If it is the same industry you can oppose their application, and have it shut down due to the likelihood of confusion even though the term will be used as a trademark and not as a company name. So far so good!

However, as mentioned above, a company name registration only means you have the right to use the name as a company name, not as a trademark for your products and or services on the open market. Even though you can stop others naming their trademark “xxzzyy” with a company name registration, others can also stop you from calling your products “xxzzyy”. A soon as you start to market your name you run the risk of committing trademark infringement on an existing trademark registration.

When using the term “market” it does not only mean to advertise your brand, but it can also be enough to register a domain name such as xxzzyy.com. This means that tons of companies, often unknowingly, face the risk of committing trademark infringement.

Now, let us say that you want to sell your products to a different country than the one you have registered your company name. In this case you have no rights whatsoever and often it can be very complicated and expensive to start a new company within each country you are selling your products and services to. Even if you do not infringe on someone else you can not protect your brand in anyway and stop others from using your brand name.

Therefore, a trademark registration is a great solution. You get the sole rights to your brand, you can market and operate within the countries you have it registered with, you can stop others from using your brand name and you can minimize the risk of committing trademark infringement and it is very cost efficient.

The team behind digip have over 20 years of experience within the trademark industry and we love helping customers obtain a great trademark protection to a market competitive price. Do you have a company but do not have a trademark registration? Book a meeting with us today and let’s evaluate your situation together.