Understanding the Use of Brand Names in Company Names

The internet has made it easier than ever to start a business, but it also comes with a myriad of legal considerations, particularly when it comes to the naming of your company. One of the most frequently asked questions is whether it is permissible to use a brand name in your company name. This article aims to provide a comprehensive overview of the legalities and SEO considerations surrounding the use of brand names in company names.

Legal Perspectives on Using Brand Names in Company Names

Legalities related to using brand names in company names vary widely depending on location. However, generally speaking, there are often no special rules about the use of the word 'brand.' For instance, there is a company known as 'The Brand Power Company,' which is an advertising agency. This demonstrates that while the word 'brand' can be used, there are specific legal considerations to keep in mind.

Using the name of another company's product as the name for your own business can potentially lead to legal issues such as trademark infringement. Trademark infringement occurs when a business uses a mark (a name, logo, or slogan) that is similar or identical to another company's trademark, leading to customer confusion. For example, if you were to name your hamburger company the same as another well-known quick-service restaurant, it could result in legal issues.

Guarding Against Legal Issues

To avoid these legal complications, it is crucial to conduct thorough research and consult with a legal professional. While the legal fees associated with these issues can be high, ensuring that your business name does not infringe on existing trademarks is essential for long-term success. If your product or service is generic (such as a hamburger, cheeseburger, fish sandwich, or white glue, petroleum jelly), you are generally safe. However, if your product or service has a specific name only associated with one company (such as Coca-Cola), you should be very careful.

Anyone can register a company under a name containing a brand name of another company without paying any commission to the brand owner. However, once the company is incorporated, the brand owner can sue it if there is a chance of success or a substantial business need. If the brand is a well-known, created word, or operates in the same industry as the company in question, the likelihood of a successful lawsuit is higher.

SEO Considerations for Company Names

From an SEO (Search Engine Optimization) perspective, your company name should be unique, memorable, and easy to spell, pronounce, and type. A catchy brand name not only aids in gaining visibility online but also increases the likelihood of customer recognition and, consequently, sales. While it is quite common for companies to use brand names in their names, there are certain conditions that must be met for this to be appropriate.

Firstly, the use of a brand name must not create confusion among customers regarding the company's products or services. Secondly, you should check if there are any existing trademarks that are identical to the one you want to use. Lastly, the name you choose should not be in use by another company. Meeting these conditions can provide a sense of security when using brand names in your company names.

Best Practices and Recommendations

If you decide to use a brand name in your company name, you should ensure that it is not already trademarked or registered. You can incorporate the brand name as a significant part of your business name, such as the middle or end of the name (e.g., BCBGMaxMara), or place the brand name at the beginning (e.g., Urban Outfitters).

My advice is to always consult a lawyer when you are unsure about the appropriateness of your proposed company name. Legal advice can provide you with peace of mind and ensure that your business is protected from potential legal issues.

By following these guidelines, you can effectively navigate the complex world of legal and SEO considerations when choosing a company name that incorporates a brand name, ensuring the success and sustainability of your business.