What are the Legal Differences Between a Brand and a Company?
Karan Singh | Updated: May 25, 2021 | Category: Trademark
If you desire to create an outstanding brand and a company, you should know the legal differences between a brand and a company. In this article, we will explain to you the legal differences between a brand and a company and the requirements of naming a brand and a company.
There are two separate entities that are commonly experienced in marketing. The primary legal differences between a brand and a company are that a company is an artificial individual in the law’s eye and it performs as an individual and file a case, make an income, or appear in front of constitutional authorities, whereas a brand is an intangible asset established by the value & performance of the company. In simple terms, a company carries out some business, whereas a brand is created by the successful functioning of a business.
Table of Contents
An Overview of Trademark
Trademarks are unique signs, logos, or names that are used to recognise a company’s products or services from another company. They can be signs, name, logo, words, designs, or pictures. It is essential because it distinguishes your products from the competitions. It can be linked with your product or your brand. Trademarks are categorised as Intellectual Property and hence are safeguarded from infringement. Trademark and their rights are safeguarded by the Trade Marks Act, 1999[1].
To get Trademark rights protection, an individual has to obtain a Trademark Registration. It is vital to get Trademark Registration because it prevents others from using or copying your mark and misrepresenting other products with your marks. Trademarks aid the consumers to identify the brand and the value of a brand in one look like the logo, a tick sign in Nike, etc.
Unlike Patents, Trademarks doesn’t have a specific limitation period. A Patent expires in twenty years, and a Trademark Registration is valid for ten years from the registration date. However, unlike Patents, a Trademark can be again renewed for another ten years.
Legal Differences between a Brand and a Company
Usually, peoples get confused between a company name and a brand name. They think that the brand and company name is one and similar. However, that’s not the case; a brand is something that provides people with the image or an idea of a company through its particular products or services. It is measured as one of the most precious company’s assets.
However, the name of the company is a name linked with an organisation whose main focus is to attain some profits in the business field. It is an incorporated name of the organisation. Similarly, the name of the company is a legal name under which the sole owner or the partners decide to carry any business activity. The name of a company always ends with a suffix. It should also be noted that different brands can also belong to a single entity.
Below is the table where you can check the legal differences between a brand and a company:
| Brand | Company |
| A brand recognises a logo, word, symbol, mark, or name that people use to distinguish one product from another. | It is mentioned as the legal company or an organisation which attracts in business that is products/sells products or services. |
| A single brand cannot be held by more than one entity or a company | One company can own numerous brands. |
| A brand is something that is created via customer’s expectations and viewpoints. | A Company is an organisation that produces or promotes its products or services. |
| A brand name is used to differentiate the products or services of one company from another company | The name of the company is used to differentiate one company from the other company. |
Fundamentals of Naming a Brand
A brand name helps clients recognise and distinguish between the products of parent companies or entities from other entities or companies. Brand names are protected by a Trademark or Service Mark from a certified agency or a Government Agency. Moreover, brand names should be perceptible and attractive in nature. A brand name should be chosen by the observance of the following points.
- The brand name should be unique or distinctive and stand out from the competition;
- It should be simple to remember, pronounce and recognise.
Fundamentals of Naming a Company
All we have names, and it is an essential part of our identity. Similarly, when a company is established, a name linked with it for its identification and this name is called the company name. It contributes gives to the marketing of the products of the company. While naming a company, you should keep some essential points to remember:
- The company’s name should be distinctive or unique, and it should present the mirror image of the product’s quality;
- Further, the company’s name should have a creative aspect to catch the customer’s attention;
- The name of a company should be legally available.
Conclusion
We hope you have acknowledged the legal differences between a brand and a company, as we mentioned above. Sometimes, a brand name is similar to the company name, and at times, a brand name linked with a company tends to get more popular than the company’s name.
Read our article:An Overview of Madrid Protocol in India
