It’s crucial to pick the appropriate legal structure when launching a firm to safeguard both the enterprise and its founders. LLC and trademark are two words that are frequently used in this context. But what do these expressions actually signify, and how do they differ? Explore now.
Limited Liability Companies (LLCs) are a sort of legal structure that provide their owners, sometimes referred to as members, with personal liability protection. An LLC can keep assets, enter into contracts, and run businesses since it exists independently from its owners. An LLC is a common choice for small business owners because its members are not individually responsible for the debts or legal problems of the company.
A trademark, on the other hand, is a picture, word, or phrase that identifies and sets one good or service apart from others on the market. By prohibiting others from using the same or similar marks that can lead to customer confusion, trademarks provide businesses with legal protection. The United States Patent and Trademark Office (USPTO) grants the only right to use a trademark in connection with a good or service upon registration of the mark.
The proposed mark being too similar to an already existing one is one of the most frequent grounds for trademark refusal. If the USPTO determines that a mark may lead to consumer confusion, it will reject the application. Use of generic or descriptive phrases, derogatory or scandalous marks, or markings that are too similar to official insignia are further grounds for rejection.
Trademark registration is typically less expensive than patent registration in terms of cost. While the cost of registering a trademark with the USPTO ranges from $225 to $400 per class of products or services, the cost of registering a patent can reach thousands of dollars. It’s important to keep in mind that trademark registration costs can vary based on the application’s complexity and whether legal counsel is necessary.
A product name’s trademarking fee can also differ. Businesses may need to engage a trademark attorney to help with the application process; the USPTO charges a cost of $225 to $400 per class of products or services. Depending on the degree of sophistication, the attorney’s costs can go from a few hundred to several thousand dollars.
In conclusion, an LLC and a trademark are two distinct entities with distinct functions. While a trademark is a symbol or phrase that defines and sets one good or service apart from others in the market, an LLC is a legal framework that shields business owners from personal liability. The cost of trademarking a product name might vary depending on the intricacy of the application and whether legal counsel is needed. Trademark registration is often less expensive than patent registration.