You recently became aware that another business is using a similar name to your company. Maybe it’s identical, or maybe it’s just very close. Either way, you’re wondering if this is a violation of your intellectual property rights.
It may be, but there are a few different things to consider. In some cases, it is legal for businesses to have similar names.
What type of businesses are involved?
First and foremost, it may depend on what type of company you run and what type of business is using the similar name. For instance, with corporations, using the same name is usually not allowed. However, with business partnerships and sole proprietorships, both businesses may be able to operate under a similar name without issue. So you need to consider how your company was structured and how the other business was set up to see where these legal regulations apply.
Will it cause consumer confusion?
The second thing to consider is whether consumers will actually be confused by the names or not. For instance, maybe the other company is in a different country or a different state, so it’s unlikely that consumers would ever get the two small businesses confused in the first place. Or maybe they work in a very different industry. Perhaps your business is an automotive repair shop and the other company is a tech firm. Consumers aren’t going to mistake the two, so it may not be a legal problem.
That said, issues with intellectual property rights can get very complex. Be sure you know what steps you can take on behalf of yourself and your business.