Dispute Over the Name of a Business
When starting a business, you want to make sure nobody is already doing business under the name you want. This is important for two reasons. First, you want your company’s name to be unique, so that when your customer hears it, the customer thinks only of you, not someone else.
But even more importantly, you want to avoid infringing on another business’s registered trademark or name. Why? The consequences can be severe. The owner of the mark can sue you and your business in federal court and seek to:
- Recover damages for the confusion you caused in terms of lost business,
- Disgorge your profits from doing business under the name in question,
- Make you pay the plaintiff’s attorney fees, typically upwards of $350 per hour.
Plus, if a court finds your conduct was intentional, you could face a claim for punitive damages.
What Things Get You Into Trouble Over a Name
Here’s how the United States Patent and Trademark Office describes it:
To support a trademark infringement claim in court, a plaintiff must prove that it owns a valid mark, that it has priority (its rights in the mark(s) are “senior” to the defendant’s), and that the defendant’s mark is likely to cause confusion in the minds of consumers about the source or sponsorship of the goods or services offered under the parties’ marks. When a plaintiff owns a federal trademark registration on the Principal Register, there is a legal presumption of the validity and ownership of the mark as well as of the exclusive right to use the mark nationwide on or in connection with the goods or services listed in the registration. These presumptions may be rebutted in the court proceedings.
The court will look to whether the Defendant’s conduct tended to cause confusion or dilute the value of the plaintiff’s mark.
What To Do If I’ve Been Sued?
If you have already been sued, click here to learn more, from the United States Patent and Trademark Office. Click here to return to frequently asked questions.
Contact a Lawyer About Business Name
Feel free to contact a Pittsburgh lawyer at our firm to incorporate your business and help you with any business name in Pennsylvania.
Click here to contact us today!