Trademarks 101: What Entrepreneurs Should Know

Trademark mistakes can be costly, but they’re also easy to avoid with the right knowledge. Whether you’re launching a brand in Boulder or Kansas City or expanding your business elsewhere, understanding trademarks is critical to protecting what’s yours and avoiding infringement issues.

This guide covers the basics of what every business owner should know.

(Confused about IP? Learn the differences between copyrights, trademarks, trade secrets, and patents here.)

What is a trademark?

Trademarks exist to protect consumers by ensuring that brand names, logos, and slogans reliably indicate the source of a product or service. For example, when someone buys a laptop with an Apple logo, they trust that it was made by Apple, Inc.

Businesses benefit from trademarks as well. Once a business obtains rights, it can prevent competitors from using confusingly similar marks that could mislead customers. Protection applies to business names, logos, slogans, colors, scents, and even unique sounds—like Darth Vader’s breathing used to sell action figures.

How do you secure rights?

The first person to use a mark on a specific good or service within a geographic area obtains common law trademark rights. However, these rights are limited to the area where the mark is actively used. To secure nationwide rights, a business must either be the first to use the mark nationwide or obtain a federal trademark registration through the USPTO.

Other important aspects of trademark protection:

• Searches: Since rights stem from use, it’s always wise to conduct a trademark search before choosing a business name to avoid conflicts.
• Strength of Your Mark: Generic names like “BBQ Shack” cannot be protected. Descriptive names like “Holiday Inn” are difficult to protect. Suggestive names like “Coppertone” and arbitrary names like “Apple” (for computers) are much stronger.
• Goods/Service Classes: Rights are limited to specific goods or services. This is why Delta Faucets and Delta Airlines can coexist with the same name.
• Length of Protection: As long as a mark is used in commerce and registrations are renewed, protection can last indefinitely.

What constitutes infringement?

Trademark infringement occurs when a business uses a confusingly similar mark on related goods or services, creating a likelihood of consumer confusion. This can result in legal action that forces the infringing party to either shut down or completely rebrand.

To avoid infringement issues:

• Monitor the market to stop unauthorized use of your trademark.
• Conduct proper research before selecting a business name or logo to ensure it doesn’t infringe on someone else’s rights.
• If in doubt, consult a trademark attorney before investing in branding.

Trademarks are one of the most valuable assets a business can own. Taking the right steps early can prevent expensive disputes and protect your brand’s identity in the long run.

*This article is general in nature and is not legal advice.