Trade Name vs Trademark- Know the Difference

Pet gets confused between the Trademark and Trade Name as they measured similar. However, the pact is both the Trademark and Trade Name are different, and both are equally essential for a business. One should know the difference between Trade Name vs Trademark to decide whether they are in need of Trade name or Trademark Registration. In this write-up, you will get to know the Trade Name vs Trademark, which thoroughly elaborated.

What is a Trademark?

Before we discuss the difference between Trade Name vs Trademark, lets us first understand the meaning of Trademark and Trade Name. It is a brand name that consists of a logo, name, word, symbol, or combination of colours. It has differentiated the products and services of one company from others. The Trademark Registration safeguards products and services under the Trade Marks Act, in which any illegal use of any registered Trademark is an infringement of the law. Therefore, one should check before using it whether the brand name of the Trademark is available or already registered by any other individual.

Trade Name – Meaning

Trade Name is used to provide an identity to any firm, LLP, or any company. Such firms or companies have to carry on the business under a specific name. At the time of Company Registration, it is compulsory to deliver a unique or distinct Trade Name where one can use any trade name.

Moreover, it is compulsory for the LLP or a company to use a trade name that is dissimilar from any present LLP or company. The Ministry should not approve a Trade Name is similar to those being used by any other entity or LLP incorporated with MCA or Ministry of Corporate Affairs.

Difference Between Trade Name vs Trademark

Following are some points that differentiate Trade Name vs Trademark:

• Regulating Authority:

1. The regulating authorities for both the Trademark and Trade Name are dissimilar. The Trade Name get registered under different Act as per the business form. For example, an LLP, Company, and firm are registered under MCS (Ministry of Corporate Affairs) controlled by the Companies Act and Limited Liability Partnership Act, respectively.
2. The Trademark gets incorporated under the Trademark Registry and controlled by the Trademark Act. If a Trademark is to be owned by a company or an entity, then one has first to register the company (its Trade Name), and Trademark Registration can be done after that.

• Asset Creation:

1. The Trade Name is just the company’s name. The company carries on business activity and enters into an agreement under such name. It performs as an administrative meaning where all other tax registrations, filings are done under the Trade Name.
2. But, on another side, the Trademark is an intangible asset of a company. It adds some value to a business or a company and also creates goodwill in the market for the company. Trademark is used for distinguishing the products from other products, where one cannot enter into the agreement in the Trademark name or brand name.

• Registration Process:

1. The regulatory authority is different & hence, the process of registration of Trademark and Trade Name is altogether different. The Trade Name is incorporated under the various acts depends upon the type of business. But, all the forms of Trademarks are registered under the Trade Marks Act^[1]. Any Trade Name can acquire registered except in the case of the entities and LLPs. In the LLP and company, the Ministry doesn’t approve of a similar name.
2. If the Trademark is successfully registered with any name, then the Ministry will not consent to the same Trademark for an LLP and a company, where the registration time also differs. A Trade Name is incorporated in around two weeks; however, registration of a Trademark takes at least 3 or 4 months.

• Renewal Event:

1. The Trade Name, once registered, is registered perpetually. There is no need to renew the company or business registration.
2. However, the Trademark is valid for ten years only. If it’s not renewed within the prescribed time period, then one may lose the Trademark, which permits others to use a similar brand name.

• Legal Protection:

1. To protect the brand name, one has to take registration under the Trademark Act. It furnishes legal protection for illegal use of the brand name where one may file a suit against such person.
2. However, if the person has only registered the Trade Name and not the Trademark, then the other individual may use that Trademark. In this case, one can file suit against others; however, that requires proving that one party is continuously using such a Trademark and Trademark usage affects that person or individual. Therefore, the load of proof is higher.

Conclusion

Regardless of sounding similar, the significance of both terms is dissimilar. They are independently defined under the law, where each of the terms serves a distinct purpose. There is no direct relation between Trademark and Trade Name. Each can be registered separately and delivers different rights. It should be well-known that a Trade Name represents “doing Business” while a Trademark represents the Trademark of the products or services. The best example for Trade Name vs Trademark is “Paytm”, which is a Trademark, and its Trade Name is “One97 Communications Limited”.

Read our article:What are the Legal Differences Between a Brand and a Company?