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When starting your company, there are many things to do – a business plan, getting funding and investors, and of course developing a marketing strategy. While these are important, an often overlooked or underestimated thing to do is trademark clearance.
Many people think that if they can secure their company name in a state corporate filing (such as an LLC) then they automatically have exclusive rights to their company name. Not so! Relying only on the LLC name as a green light for the company’s name can be an expensive mistake with long-term repercussions.
What is trademark clearance anyway?
Trademark clearance is a deep-dive to make sure that the business name or brand does not infringe on existing trademarks – or is confusingly similar to create a situation where the trademark mark holder may object to your business’s (or product/service) name.
Trademarks are source identifiers. Put another way, they tell the consumer that the good or service is from a particular provider. Imagine going to a convenience store for a beverage and finding shelves of beverages, but only some of them were authentic. You would not know which one to choose for fear of getting a fake beverage of dubious origin. This is why trademarks are so important to our economy (and our safety). They are a valuable asset that tells consumers that your company is the source of trademarked products/services. Plus, trademarks help build brand recognition and customer loyalty.
If you fail to do a proper clearance before launching a business you risk legal disputes, loss of brand reputation, and financial setbacks down the road.
Here are several reasons why trademark clearance should be the first thing you do when starting a company:
- Avoid Infringement Lawsuits: Without conducting trademark clearance, you risk using a name that is already protected by someone else’s trademark or is confusingly similar. This could result in costly legal battles, including cease and desist orders, injunctions, and damages for trademark infringement. Don’t let these suits drain your resources, disrupt business operations, and tarnish your brand’s reputation.
- Build Your Own Brand Reputation: Building a strong brand reputation takes time, effort, and investment. Using a name that is already associated with another company can undermine your brand’s credibility and trustworthiness in the eyes of consumers. By conducting trademark clearance, you can avoid inadvertently adopting a similar or exact brand name that may harm your reputation.
- Secure Your Own Exclusive Rights: Trademark clearance ensures that your chosen business name or brand is unique and available for use without infringing upon the rights of others. Registering your trademark provides you with exclusive rights to use the mark in connection with your goods or services, thereby safeguarding your brand identity and market position. It also deters competitors from using similar names that could cause confusion among consumers.
- Prevent Expensive Rebranding: Discovering trademark issues after launching your business can be costly and disruptive. You may be forced to rebrand your business, which entails redesigning logos, updating marketing materials, and notifying customers and stakeholders of the change. Rebranding can erode brand equity, confuse customers, and weaken market presence, resulting in lost revenue and diminished competitiveness.
- Expand Your Mark Globally: Think big! Conducting trademark clearance not only protects your brand domestically but also facilitates international expansion. Registering your trademark provides valuable rights and protections in foreign markets, enabling you to enter new territories with confidence and establish a global presence. Failing to clear your trademark could hinder your ability to expand internationally and expose you to legal risks in foreign jurisdictions.
Trademark clearance is a critical step in the early stages of starting a company that should not be overlooked or underestimated. You simply cannot rely on the state registration of an LLC name as clearance to use your company’s name nationwide. Avoid the pitfalls by having a trademark clearance done by a legal professional – not just for your company name, but for new products and services as well.
It’s not worth it to plow ahead, risk trademark infringement and damage to your brand when you can instead build your own strong brand and set yourself up for long-term success. Compared to the potential cost for inaction or false steps, trademark clearance is a no-brainer. You should be free to focus on growing your business and establishing your brand – not fighting legal battles and doing damage control.
Ready to protect your brand and ensure your company’s success from the start? At The Patent Baron, our skilled trademark lawyer is here to guide you through the trademark clearance process, helping you avoid legal pitfalls and secure your brand identity. Don’t leave the future of your business to chance. Contact us today to get started on securing your exclusive rights and building a strong, recognizable brand that stands out in the marketplace. Call The Patent Baron now and take the first step towards safeguarding your business’s future!
