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Can two companies run businesses with same name?

So you’ve established a company and are eager to adopt the fantastic business name you’ve always envisioned. But first, you want to make sure you have a distinctive business name and that no other company can use it. Is having the same company name as another firm a smart idea if it is allowed?

Let’s take a deeper look at the business naming, including what it means to have the same name as another company and how to handle this potential business dispute before you go through the process of trademarking a name or entirely altering it.

Q1. Is it possible for my Business to have the same name as other Businesses?

The legal entitlement relating to your Business, including your business name, is affected by the company you create as an entrepreneur. The names of companies are crucial. They act as essential marketing tools and brand statements. Even if they do not register their trademarks, many firms, large and small, spend a lot of effort and money promoting their names so that customers identify and remember them. It may be quite aggravating to learn that another firm is using “your” name. Nevertheless, suppose your company name is identical to that of another incorporated firm. In that case, there may be reasons for a legal dispute, and you may be unable to utilize the business name lawfully.

Q2. What criteria apply to trade names that are too close or identical?

If you’re anxious about your company having the same or similar name as another firm and you’re unclear about the regulations, think about your buyer. The claim to a business name has much to do with customer confusion and whether having two close or identical names would irritate them. If you and another company have similar names but aren’t in the same industry or field, there may be no problem.

For example, let’s say your company is in the technology industry, while another company with the same or similar name is in the construction industry. The likelihood of customer misunderstanding is low in this scenario. It might be a problem if two firms operate in the same area or industry, such as two clothing labels having the same name.

Another factor to consider is the “name first” rule. If your company was the first to use the name and register it, you might be able to prove your legal ownership of the name. If your firm is the first to trademark the name, you will have a greater right to utilize it.

You may want to know-  E-Filing of Trademark Infringement Cases in Dubai: New IP Gateway

Q3. What is the best way to see if the company name I want is already taken?

The USPTO’s Trademark Electronic Search System, or TESS, allows anybody to search trademarks for free. While searching for straight name matches is relatively simple, trademark searches may become tricky, and you may need assistance to do a complete search. Marks don’t have to be identical to be comparable. Names may be similar if they appear or sound the same, for example. Look for different spellings and word ends, as well as precise matches, while checking trademark status. If the goods and services are unconnected, such as Delta faucets and Delta airlines, it is conceivable to have similar registered trademarks. Clothing and shoes, or coffee and croissants, are examples of related commodities and services that are comparable or frequently sold together. As a result, if you come across a similar mark, you should check to see if it has been registered for similar products or services.

Q4. What can I do to keep my company’s name safe?

One of the options is to register a trademark. It grants you trademark rights to your company name and the legal ability to fight for trademark infringement on a provincial or federal level if necessary. To protect your brand, make sure you have the required trademarks and incorporation in place for your business name.

Q5. What are my options for resolving the same tradename conflict with another company?

  1. Cease and Desist Letter: Send a stop and desist letter to any company that uses the same name, trademark, or domain name as yours as a warning. It will establish that you are aware of trademark law and do not want them to use the term. 
  2. Filing of Legal actionIf they do not respond correctly and the violation persists, you may pursue additional legal action to establish that the Infringement has harmed your firm. Depending on the severity of the Infringement, you as the injured person may be entitled to damages.

Why choose HHS Lawyers and Legal Consultants

It is prudent to report the trademark infringement to ensure that no one else impersonates the owner. It is recommended that you file your infringement complaint immediately upon becoming aware of the Infringement to protect and enforce your trademark rights in the UAE. It enables your business to develop a sustainable brand identity capable of enhancing its reputation.

As one of Dubai’s leading law firms, HHS Lawyers and Legal Consultants provides our valued clients with trademark enforcement services. Our trademark attorney possesses extensive experience prosecuting trademark infringement lawsuits. Our knowledgeable and experienced trademark representatives can assist you with the following:

  1. Bringing an action for trademark infringement by drafting cease and desist letters or legal notice in advance of the lawsuit.
  2. Any questions about the validity and Infringement of third-party trademarks.
  3. Resolving your dispute with the other party amicably and out of Court.

M. Al Khatem

Trademark & Intellectual Property

M. Al Khatem is a senior Trademark and Intellectual Property (IP) expert in HHS Lawyers. He has handled some of the firm’s complex, high-profile cases – many involving the protection of trademark and IP rights.