A trade name is something like “Nike.” The brand name that the sportswear and footwear business utilizes on the market is this one. However, “Nike, Inc.” is the business’s legal name. Since a trade name is typically shorter, more memorable, and simpler to understand than the legal name, it is advantageous for marketing and branding purposes.
If a business owner registers a trade name with the proper state agency, then using it is legal. Trade names are registered with the Secretary of State’s office in the US. It is crucial to remember that using a trade name does not give the company legal protection. This implies that the original business may not have any legal remedy if another business continues to use the same or a similar trade name.
Can a trading name be sued? No, is the response. However, if another business uses a similar trade name, logo, or design that could mislead or confuse customers, the business owner has the right to file a lawsuit for trademark infringement. For instance, if a brand-new manufacturer of athletic wear adopts the term “Nike Sports,” the original Nike corporation may file a lawsuit against them for trademark infringement.
A lone proprietor may use distinct trading identities for various business ventures. It’s crucial to remember that each trading name needs to be registered separately. A sole trader that offers both apparel and shoes, for instance, is permitted to use two different trade names, such as “Fashionista Clothing” and “Soleful Shoes.”
Does a trade name correspond to a DBA? Yes, it is the answer. DBA, which stands for “doing business as,” is another expression that’s used to describe a trade name. A DBA allows a business owner to advertise their brand and carry on operations under a name other than their actual legal identity. A DBA needs to be registered with the relevant state agency, just like a trade name must.
In conclusion, a trade name is a practical marketing and branding tool for companies. It is crucial to realize that it does not offer legal protection and to register it with the relevant governmental body. A DBA is another term for a trade name, and a business owner may have many trading identities for various business ventures.