Choosing a business name
There are a few key things you need to consider when choosing a name for your business. Before you go to the expense of engaging design companies to prepare your branding concept, here are a few important legal checks you should undertake that may save you a lot of money, time and trouble down the track.
- Do any other businesses already use a similar name?
This may sound obvious, but in a world full of social media entrepreneurs, you would be surprised how many new businesses pop up daily. Your searches should include:
- General internet searches
- Company names
- Business names
- Domain names; and
- Social media handles
- Is the name restricted in any way?
Did you know that certain words and expressions are restricted from use in business? This can be for many reasons including, for example, because they may mislead customers. Check the full list of restricted words at www.asic.gov.au When considering the restrictions, you should note that they also apply to
- Words or expressions that have the same or a similar meaning,
- Abbreviations of restricted words or expressions, and
- A restricted word that is embedded in a name
Has anyone trade marked the name or something similar already? Just because your business name is available to be registered as a business name does not mean that your business name does not conflict with a name that is already registered as a trade mark. This means that before you register a business name, it is important to check to see if it or anything similar has already been registered. Note that similar trade marks may be able to coexist when in different industries and where the risk of consumer confusion is low. If in doubt you should seek legal advice. If you are planning on expanding your business overseas in future do your checks need to be conducted of overseas trade mark registries? To check if there is an existing trade mark for your business name or something similar in Australia there are resources available on the website maintained by IP Australia at www.ipaustralia.gov.au. We can also assist with conducting clearance checks for clients.
- Is it a name that is not going to mislead or offend people?
Check if the name could be misunderstood, especially in other languages or if you plan to use it in other countries. Check that your names doesn’t convey a different message than its intention. If you don’t you may find yourself facing complaint by the ACCC or Consumer Affairs.
- Does it need to be registered and if so, where?
After you have decided on your business name the next step is that you will likely need to register it. There is no requirement to register if you or your business partner are trading under your first name and surname but in all other circumstances you will need to register the trading name. A business name is registered nationally with the Australian Securities and Investments Commission (ASIC). This allows your business to operate in any State or Territory in Australia. For more details visitwww.asic.gov.au Registering a business name doesn’t give you exclusive rights or proprietary rights in that name. Only the successful registration of a trade mark can give its owner such exclusive rights. You should also consider registering your business name as a trade mark. Lastly, you should consider choosing a business name that you connect with and that will grow with your business. If you require any assistance with registering your business name, a trade mark, any intellectual property related matters or any other legal matters, and are looking for a lawyer to help you, please contact us for assistance.