Business Name Registration

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A corporate or business name often is one of the most important and valuable assets of a business. A business’s brand is almost always associated with its business name, representing the quality of the business’s goods and/or services, and thus accruing goodwill and a positive reputation in the market amongst consumers.

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In B.C., a business owner may register a business name (or a trade name) for their business by submitting a name request application to B.C. Registry Services. B.C. Registry Services will then check the availability of the proposed business name and determine whether it is valid for registration. This process typically ensures that an identical business name does not already exist, but does not consider business names that might be confusingly similar therewith. The business name registration permits the use of the registered name for identification purposes.

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Using Trademark Registration to Protect your Business Name

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While you as a business owner may have your business name approved and used in the course of your business, the registration of your business name does not guarantee that you have legal rights to use the name. For example, if your business name is confusingly similar to an existing business name or trademark with earlier rights, there may be others who may seek to stop you from using your business name under allegations of passing off or trademark infringement.

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Further, the business name registration does not permit you to stop anyone else from using the name (without registration), or something similar. Overall, business name registrations do not entail the same level of protection as holding a trademark registration, particularly when it comes to preventing others from using confusingly similar names for their goods and/or services. A business name registration is certainly not equivalent to a trademark registration in Canada. Without a trademark registration, you would be forced to rely on common law rights to prevent someone from using the same name or something confusingly similar, which can be tough to do.

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If your business strategy entails the use of your business name as a trademark, specifically to identify your goods and/or services, it is almost always best to take precautions and apply for a trademark registration of the name. Business names are not always used as trademarks.  For example, your business name may be “JACKS LTD.” but your products may be marketed under a different trademark, such as “JACKO’S RODS”.  The former would be your registered business name, whilst the latter may be eligible for trademark registration.  A business name is typically only eligible for trademark registration if you are using or have a bona fide intention to use the business name as a trademark, to identify your goods and/or services. You do not want your exclusive right to use your business name as a trademark to be compromised because you did not register.

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Generally, trademarks serve a different purpose than business names. Where registration of business names are used to identify a business, they do not grant proprietary rights to the names, while the registration of a name as a trademark grants you said rights. In Canada, a trademark registration gives the owner the exclusive right to use the trademark (which may be a business name) in association with the goods and/or services. For a business, this would mean having the exclusive right to use the registered trademark in association with the goods and/or services of the business and allowing the trademark owner to prevent others from using the same or a confusingly similar trademark in Canada. This protection is nationwide and exclusive in association with the goods and/or services in the registration. On the other hand, if another entity applies and registers a trademark using your business name, you may be forced to change your business name to avoid infringing their rights.

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In addition to protecting your business name,  also consider protecting your website or domain name, logo, business slogan and various names of products and/or services, particularly where such marks are used to distinguish your goods and/or services from those of others, for the same reason.

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Summary

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In view of the potential value of a trademark, registering your business name ought to be strongly considered.  Indeed, for start-ups, a review of the Trademarks Register may be worthwhile to ensure no confusingly similar trademarks are registered before securing a business name.  For more established corporations, trademark registration should be considered earlier rather than later.

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