Protecting Your Brand

Business Names vs. Trade Marks

People often think that registering a business name with the Australian Securities & Investment Commission (ASIC) results in ownership of the name or a right to use it.

Wrong!

WHAT IS A BUSINESS NAME?

Put simply, it’s the name of your business. Unless you use your own name as the name of your business, you must register it to satisfy legal requirements, but the purpose of the registration system is simply to enable the public to identify who is behind a business. The Register is a source of information, but does not provide ownership of the name or the right to use it or stop others from using it. In fact, even if you use a registered business name you can infringe on the rights of others and find yourself in a costly dispute.

WHAT IS A TRADE MARK?

Put simply it’s a ‘badge of origin’. It can be a word, logo, phrase, packaging style, colour, sound, scent, or shape (or a combination of these) – anything which distinguishes your products and/or services from those of other traders.

Trade mark registration is important. Your trade mark is the backbone of your brand and registration gives you protection and leverage.

It turns an intangible asset into tangible property, which you can exploit, license, and sell.

You get ownership and exclusive rights – a bundle of rights you can enforce against others who come too close to the look of your product or service.

By default, your registration can automatically block registration of the same and similar marks and you will have a defence to allegations that you are infringing the trade mark registrations of others.

Registration of a trade mark gives you ownership of it, and a way to preserve its integrity and value. If you sell your business one day, the strength of your trade mark rights will play an important role in the transaction.