Often confused to be the same, a trademark and a company name are actually two different concepts with different registrations. A trademark is categorized as an intellectual property for the business whereas a company name is the entity of the brand among the public.
There are some major differences between the two since they are completely exclusive affairs. Some people confuse the trademark for the company name and end up registering only the company name without any trademark rights.
Mentioned below are the points of differences between trademark registration and company registration to be kept in mind for any business.
A trademark is a company’s intellectual property which needs to be registered to have the rights to sue any infringement cases. Words, images, symbols, slogans or taglines, etc. are counted as trademarks. It can be anything that a business uses to get recognition among the public. Trademark registration gives your business a distinctive quality from the competitors.
The trademark registration process is long and usually takes around 12 months to complete. However, once it is done, the trademark is applicable for a period of 10 years and can be renewed afterwards.
It is valid across the entire country. Even though, it is not mandatory to get your trademark registered; it is advisable to register your trademarks in the case of securing the rights for any infringement activities.
A company registration involves the creation of a separate legal identity for a company. Any business name is registered under the Companies Act 2013 and creates a separate identity for the ownership of property and transaction of money.
The process is done through a centralized registration process and does not take much time. It usually gets complete within 15-20 days if all the documents are present. Once registered, the company name has no expiration.
It does not need any renewal, unlike trademark registration. A company can have numerous trademarks for various purposes and products. But there can be only one trademark for its logo or name. This registration helps the company to undertake its business activities under the registered name.
Trademark registration VS Company registration
- Once the company name is registered, the Ministry of Corporate Affairs will not allow any other business to acquire a similar name. However, if a trademark is registered, then there is no insurance that a similar trademark will not be registered. Therefore, trademark searches have to be conducted to come up with a unique and catchy trademark.
- The time of the process of registration for the two affairs differs. The process for trademark registration is very long and can last up to the period of 12 months. But the registration for the company name is very quick and easy. It can be completed within a month.
- If the company name is registered without the registration of a trademark, it can have adverse effects on the business. If the trademark is already existent in the market, then it can lead to infringement lawsuit against your company.
- The company trademark is not essential but recommended. It is not mandatory to register a trademark. However, it is compulsory to register a company name to carry out the business activities and transactions under the registered name.
- Trademarks include any words, slogans, symbols, images, etc. It is anything that gives an entity to the business. However, a company name is just a word or a set of words that gives recognition and legal entity to the company.
- The company name registration does not involve any searching process since companies are allowed to have similar names. But a rigorous research is required for choosing a trademark before filling out the registration form.
There are chief differences between trademark registration and company registration. They should not be confused with each other. It can have really harmful effects upon the business causing a complete disruption of the business’s position in the market.
The company’s name is a necessity for starting a brand but trademarks registration is a matter a choice. If the company registers only the company name and no trademarks, then it doesn’t have any legal rights over infringement cases.
Trade marking is even more important than branding the company name. You can not only create a separate and attractive identity for your brand but also gain protection from rival companies.
About the Author:
Lokesh Sharma is working as Marketing Manager at QuickCompany.in a Leading website for Trademark Registration in India