Is Your Company Name Legal?

Trademarks Explained
The Purpose of Trademark Law
How does trademark help a consumer to identify a good or service? Consider this situation: a consumer wants to buy Calvin Klein Inc. jeans, and in doing so, she wants to know that they're designed or endorsed by Calvin Klein Inc.
The consumer has in her mind certain associations with the Calvin Klein business, based on advertising and her experiences with the company. For instance, when she bought a pair of their jeans in 1995, the zipper didn't work and the company replaced them without question. She also knows the brand's advertisements, which associate images of youthful hip people with the clothes. So when she sees Calvin Klein products, this consumer thinks of quality customer service and a hip image.


Trademark law allows Calvin Klein to stop other companies from using the Calvin Klein name or logo on products that are produced by someone else. If another company were allowed to freely use the Calvin Klein name, this could injure Calvin Klein Inc. How?
another company could sell at a lower cost because it could take advantage of the advertising by Calvin Klein without having to spend any money for such recognition
another company could offer good or services of lesser quality, which consumers would then associate with Calvin Klein Inc. -- thinking it was the source of the bad products or service, and
another company could make more money by either selling more goods at a lower price, or selling products at higher prices. Either way, they'd enjoy much lower overhead, as they wouldn't have to pay to produce and deliver high quality product, good customer service, and advertising.
These examples are the heart of trademark infringement.
When considering if there is "trademark infringement", the main question a court considers is whether the average consumer would be confused as to the source of the good or service.
What is a Trademark?
A trademark is a word, phrase, symbol or design, or combination of words, phrases, symbols or designs, which identifies goods or services. A service mark is the same as a trademark, but it identifies and distinguishes the source of a service, rather than a product.
Normally, a mark for goods appears on the product or on its packaging, while a service mark appears in advertising for the services. A "tm" on a product indicates unregistered trademark rights and an "®" indicates a registered mark. It is illegal to place an "®" on a mark that does not have national registration.