The name under which you run your business is very important for recognition and findability in the market.
The name under which you run your business is very important for recognition and findability in the market.
The name under which you run your business is very important for recognition and findability in the market. This plays a big role both physically and digitally. Without findability, no customers. That is why the choice of trade name, i.e. the name under which you present your company to the outside world, is essential. Trade name law protects this name and helps you prevent competitors from confusing your customers by using an identical or similar name.
A trade name is the name under which a company goes public and by which it distinguishes itself from other companies. This can be a simple name or a creative or unique business name. It is important that a trade name is sufficiently distinctive and does not mislead consumers.
A trade name that is descriptive of the company’s activities, such as ‘Amsterdam Bike Shop’ or ‘Bakery The Hague,’ can be attractive. By indicating in your trade name what you do, you increase the public’s chances of finding you and knowing immediately what to expect. However, on the other hand, a descriptive trade name enjoys less strong protection. This is because descriptive names are necessary for other entrepreneurs to correctly designate their own services or products. Descriptive trade names can therefore only enjoy protection if there is actually a likelihood of confusion due to the use of a similar name by another party in the same industry and region.
Unlike trademark law, trade name law does not require registration. Protection arises automatically as soon as you actively use the name for your business, for example by mentioning it on your website, on your shop front, or in your business communications. Trade name law is territorially limited. Given that many companies are also active online, this often generates discussion.
The extent of your trade name protection depends on several factors, such as the geographical scope and prominence of your business. For a local business, protection typically applies within the region where the business operates, while a national business may enjoy broader protection. The more well-known your trade name is, the greater the scope of protection it can enjoy. Trade name law protects against the use of a name that may cause confusion among the relevant public, taking into account the degree of similarity between trade names, the nature of the businesses, and the region in which they operate.
As the right holder of a trade name, you have the right to prohibit others from using a name that may cause confusion among the public. Whether there is infringement depends on the degree of similarity between the trade names and the overlap in activities and region. For example, consider the confusion that could arise if two restaurants in the same city have almost identical names.
A domain name can be an essential part of your corporate identity, especially online. While registering a domain name gives you the exclusive right to use that specific web address, it does not automatically mean you are protected under Trade Name Law. Domain name registration and trade name use are separate concepts. If your domain name matches an existing trade name of another company and can cause confusion, it can lead to legal problems. It is therefore important to check carefully that your domain name does not infringe on existing trade name rights.
Always check carefully that your trade name is not already in use or too similar to another company’s name. Also, your trade name must comply with the Trade Name Act and must not infringe on any existing trademarks.
If you have a question about Trade Name Law, please contact Guldemond Advocaten.
