For the last three years, you’ve been running your own business, and it’s been growing steadily. You’re excited about what you’ve built and you’re starting to get some name recognition. You know that branding is very important for the future of your company.
That’s why you’re concerned when you notice that there is another business operating with a very similar name. Is this a violation of your intellectual property rights? Can you sue the other business for using a similar name?
The role of consumer confusion
Possibly, but it really depends on the situation. There are cases in which it is fully legal for companies to have similar names. This can happen if those names aren’t likely to cause consumer confusion.
For example, perhaps the other company is in a different state or a different country entirely. In that case, it’s unlikely that your consumers would confuse the two. There are some exceptions to this for brands with worldwide recognition – Apple, Meta, Google, etc – but most small businesses operate locally.
Another example is if the other business operates in a completely different industry. If your company provides SEO services and the other company is a fast food chain, consumers are not going to mix the two up. Both Delta Faucets and Delta Airlines are allowed to coexist, for example, because they are so different.
What do you need to do next?
So, what do you do if you think that the similarity in names will cause consumer confusion? Maybe it’s another local business in your area or operating in the same industry. If so, then it’s very important to know about all the legal steps you can take to protect your company and your intellectual property.