You started your new business a year ago, and it has been fairly successful. Wanting to find out what was being said about your company online, you decided to search for your business name.
To your surprise, you found that another business either has the same name or one that is very similar. You are worried that this could harm your company, especially if the other business appears first in search results. Is it actually legal for them to operate under the same name?
The business structure
First and foremost, consider what type of business structure you used. In some cases, such as with an incorporated business, your name may be protected. In other cases, such as with a sole proprietorship, there are no automatic protections. Whether this situation violates your rights may depend on the business structure you used when you initially set up the company.
Consumer confusion
The next thing to consider is that these cases often revolve around the idea of consumer confusion. Businesses are not supposed to use the same or a similar name to deliberately mislead consumers into making purchases.
However, in some cases, similar names may be allowed if consumers are unlikely to be confused. For example, if you run a clothing company and the other business is a tech company, consumers are unlikely to accidentally purchase products from the wrong business because the companies operate in completely different industries. It may become an issue if both businesses are in the same industry and the similar names could cause significant consumer confusion.
What are your options?
As a business owner, you want to protect your intellectual property. If you encounter these types of conflicts, be sure you understand what legal options are available to you.