Giving a company or a new product a name is often one of the most exciting moments in any business project. After weeks, or even months, of work, the time comes to present the brand to the market, design the logo, launch the website, create social media profiles, and start attracting customers.
Frequently, the entire strategy is built around a name that people like, conveys the company’s values, and appears to be available. But there is a mistake that continues to be made far too often: assuming that, if nobody known uses that name, it can also be legally used.
The reality is very different. A trademark may be registered even if the company does not operate in the same city, has no online presence, or is little known. Using it without carrying out the necessary checks can lead to significant legal and financial problems.
That is why, before investing in a corporate identity, it is advisable to make sure that it can actually be used.
A more common mistake than it may seem
It is common for self-employed professionals and small businesses to choose a name after simply checking that the internet domain is available or that they cannot find any references on Google. However, neither of these checks guarantees that the trademark is available.
Trademark rights arise from registration, not popularity. This means that a company may own a perfectly valid trademark even if it has little commercial presence or operates in another autonomous region or even another country, depending on the scope of protection.
Imagine a company in the food sector that has just launched a new product range. It has invested in packaging design, manufactured thousands of units, distributed them to its customers, and launched an advertising campaign. If months later it receives a complaint because its trademark conflicts with an earlier one, it may be forced not only to change the name, but also to withdraw the products from the market, redesign all the packaging, reprint it, and update its communications. In addition to the financial impact, such a problem can delay the commercial launch and affect customer confidence.
You do not have to copy a trademark exactly
There is a common belief that there is only a problem when two trademarks are identical. However, industrial property regulations go further, as a conflict can arise when there is a likelihood of confusion for consumers.
In other words, a trademark may infringe another trademark’s rights even if some letters are changed, the logo design is modified, or different colours are used. What is assessed is whether an average consumer could think that both products or services come from the same company or from companies that are connected.
For example, small variations in the name, similar pronunciation, or a very similar visual identity may be enough to create a conflict.
When do problems usually arise?
One of the most concerning aspects of these conflicts is that they often emerge when the company has already made a significant part of the investment.
It is common for everything to appear to be working correctly during the first few months and for the problem to arise later, when the business activity begins to gain visibility.
The most common situations are:
- During the trademark registration application process, when a third party files an opposition.
- When launching an online store or website.
- When selling on digital platforms or marketplaces.
- When participating in a national or international trade fair.
- During a commercial expansion process.
- When starting to export products.
- When a company that owns an earlier trademark detects its use and files a complaint.
At that point, the cost of rectifying the situation is usually much higher than what it would have cost to carry out a prior analysis.
How can you reduce the risk before launching a brand?
The good news is that these problems can be prevented relatively easily by incorporating certain checks into the brand creation process.
Before starting to use the brand, it is advisable to:
- Carry out a preliminary search in official databases of registered trademarks.
- Analyse not only identical trademarks, but also those that have graphic, phonetic, or conceptual similarities.
- Check that protection is sought in the appropriate classes of products and services.
- Assess the geographical scope in which the business will operate, both currently and in the future.
- Check the availability of the internet domain and the main social media profiles.
- Seek specialist advice when there are doubts about the viability of the registration.
These steps make it possible to identify potential obstacles before making significant investments in communication and marketing.
Prevention is always more cost-effective
Building a brand requires time, creativity, and investment. It is one of a company’s most valuable assets because it embodies its identity, reputation, and customer trust. Precisely for this reason, it is advisable to make sure that this identity can be used with full legal certainty before presenting it to the market.
Copying a trademark, or using one that is too similar without being aware of it, can result in financial costs, wasted time, and significant commercial problems. By contrast, carrying out a preliminary analysis and correctly planning trademark protection is a simple decision that provides legal certainty and allows the company to grow on a solid foundation.
Having personalised support, such as that offered by the Economic Office of Galicia, can be key to successful implementation. Request specialised advice free of charge and take advantage of the resources available to drive your business forward.
