Picking The Right Name For Your New Business
Starting a new business is exciting. One of the most enjoyable elements is choosing a name for your new venture. It’s something a prospective business owner can labour over for weeks, I know I did! With the perfect name picked, time and money is then spent registering the name and investing in brand assets such as a logo, website and business stationery. It’s essential the name you choose is not similar or the same as another trademarked name. You don’t want your time and hard earned money to be wasted.
To demonstrate what can happen if you choose a business name similar to another’s, I will share a true life story.
Trademark horror story
In the lovely central west town of Mudgee there was a bakery established in 1990 called McDonald’s Bakery (using the owner’s family name), some three years before McDonald’s launched their McCafe brand in 1993. McDonald’s Bakery was locally known as McDonald’s and the hamburger giant known as Macca’s. McDonald’s Bakery waited until 2007 before attempting to register the trademark Mudgee Bakery Cafe McDonald’s Bakery. The trademark application was unsuccessful.
McDonald’s Bakery had built a very successful business over the 17 years it had been trading under that name and all of a sudden, when McDonald’s/Macca’s objected to the trademark, they had to cease using the name. The value of the goodwill generated by the business name, over 17 years, evaporated, not to mention the time and money spent on the brand itself.
To avoid your own trademark horror story, here are answers to the questions we’re most frequently asked.
FAQ: Can you get a business name registered without the trademark check?
Yes. Business names and company names are registered through ASIC. ASIC doesn’t perform any trademark checks and so long as a name is not the same or too similar, it will allow the registration.
For example, not so long ago ASIC allowed the registration of “Accounting with Heart” which is similar to, but not the same as “Accounting Heart”, a registered trademark. An email was sent to the business name owner asking them to cease and desist from using the name. The business name “Accounting with Heart” is no longer registered or in use.
FAQ: Do we need a trademark check?
No, but it is best practice to check for any trademarks that may exist on your preferred business name.
FAQ: If we need the trademark check, how would we go about getting this sorted?
You can check for a trademark on the IP Australia website, however we recommend using a trademark specialist to check if there are any trademarked names that are the same or similar. We are only too happy to make a recommendation for a trademark attorney should you need one.
FAQ: Can we lodge our own trademark application?
Yes. However, again we recommend a specialist. They are doing this all of the time. It is likely that they will save you time and money in the long run. Your efforts would be better spent on other aspects of your business that you are familiar with.
If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with Sonia one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.