Lets talk facts.
Another Business Has the Same Name As Mine. How Screwed Am I?
The short answer is, “it depends.” It depends on (1) Whether the other business is in the same industry; (2) Whether the other business is in the same geographical market; (3) Who was using the mark first; and (4) Who registered the trademark first.
Let's go over a few basic assumptions:
- This post is equally informative for other kinds of trademarks as it is for business names. Thus, you could substitute "slogan," "logo," or "trade dress" for "business name" in any of the examples below.
- None of the examples below apply to "very famous marks." For reasons described in my basic trademark law post, very famous marks are treated differently under the law. If you've named your business after a very famous mark, it would be a good idea to pick a new name. Even if you had a good argument as to why you were not infringing the very famous mark, the other company could certainly outspend you on attorneys' fees and court costs. My advice is just don't go there. It's not worth it.
- All of the examples below assume that your business name is eligible for trademark. Obviously, the first step when looking at a trademark problem is to determine whether the alleged marks are even protectable. "Best SEO" is not a protectable mark, so you can't keep someone else from using it and they can't keep you from using it. It's purely descriptive. The examples below assume there is at least some potential for trademarkability and that the only remaining question is who trumps who with conflicting marks.
Remember, it is possible for two businesses to own the same or similar marks (e.g., Delta Airlines and Delta Faucets). The guiding principle is consumer confusion. If the two marks identify different products and operate in different markets, consumers are not likely to be confused. However, if the business operate in overlapping markets and have similar names, there are a series of factors we must consider to determine who has priority.
1. Does the business claiming infringement operate in the same industry as your business?
Remember that trademark's guiding principle is "do not confuse the consumer." Thus, if it is really unlikely that the other business's customers are going to be confused because you have the same name, then there really isn't a trademark issue. One of the factors courts look at to determine likelihood of customer confusion is whether the two businesses are in the same industry.
If your business name is identical to another SEO business, then you could be screwed; It certainly requires caution! However, if you provide SEO/M services and the business claiming infringement designs cookware or provides financial services, then there is really not a trademark issue. You're not screwed.
If the other business does website design or traditional marketing, the issue is arguable. It's possible that customers may get confused by the names. You should consider settlement.
2. Does the business claiming infringement operate in the same geographic market? If your customers are in different geographical areas, there is less likely to be customer confusion because you don't have the same customers. For example, in the old days, a traditional Californian marketing firm was not competing for customers in Florida. Thus, you could have AAA Marketing in Florida and in California without any infringement concerns. They both had a right to the trademark.
However, this kind of traditional analysis has become complicated by the internet. If your business is online and the other business is online, then you may be screwed because your markets may overlap. Exercise caution and analyze the other factors carefully.
If the other business is a traditional marketing firm based out of Florida that has not done much business over the web, then you're probably less screwed. You may be forbidden from performing marketing services in Florida. (Ever wonder why you can’t eat at Burger King anywhere 40 miles south of Chicago?) However, you could use the same name and offer marketing services everywhere else.
3. Which business was using the business name first?
If after looking at the two questions above you've determined that the other business shares your market, then you need to determine who was using the business name first. Trademark rights are established on a first-come, first-serve basis. You want to be the first business to have used the mark so that you can establish yourself as the senior rights holder. If you started using the business name before the other guy, then you're in great legal shape (assuming you can prove it!). On the other hand, if the other guy used the business name first, then you're pretty dang screwed.
4. Who registered the business name first?
This question is related to the third factor, above. In a perfect world, before registering a trademark, you conduct a thorough search of your market to make sure that nobody other than you has been using the trademark. Thus, in the ideal world it would never be the case that you have registered the trademark, but someone else was using it before you. Because the first person to use the business name gets dibs on it, the trademark registry would be a completely accurate database of who owns what mark. Unfortunately, life is messy and sometimes people register trademarks that were being used by other businesses first.
If you start using the business name first, but the other business registered it first, then you still have the right to use the name, but only in the market you were operating in at the time the other business registered the name. Thus, you're only sort of screwed. You basically have no right to expand your market. The business who federally registered the name has priority everywhere else and can prevent you from using the mark in new areas. Thus, it's never too late to register your trademarks!
If the other company registers the mark before you even started using it, then you are very screwed. By registering the name, the other business puts you and everyone else on constructive notice that it owns the mark. Thus, you may find that a competitor has already registered, so settle the claim quickly and efficiently.