Similar Trademark Names: Is it Legal to Use One?

No, it's not allowed. Only unregistered business names are permitted to be used in India. As a result, one of the most important things to do is to check for availability before deciding on a business name. The specifics of using an already-existing company name make sure that no one else's register a brand name is used inadvertently. By the time it's all over, you ought to know a lot more about shielding your company from legal trouble

Whether you're just starting out or an experienced business owner, it's imperative that you safeguard your brand and intellectual property against infringement by third parties. Many traders frequently find it challenging to understand the specifics of trademark laws and other aspects of intellectual property.  It is worthwhile to take a moment to educate yourself on how to preserve your business's most important assets, which might be the brand you have and the goodwill that you cultivate.

The purpose of registering a trademark is to protect unique identifiers (such company names and logos) that you personally use to set your goods and services apart from competing ones. Unlike certain other types of intellectual property, trademark registration does not have a lifespan limit, so you could essentially have this protection indefinitely. You can come across other company names that are similar to yours when deciding whatever to name your company or what unique brand to offer as a new product.  Many times, these results left people feeling discouraged, but it's advisable to speak with an experienced trademark professional to learn all of your legal choices before deciding on giving up on your decision.

Is it possible for two companies to share the same name?

No, your business cannot use a name that already belongs to another business. Pursuant to the Companies Act, 2013, the Ministries of Corporate Affairs shall prohibit the registration of another Company or LLP with the same name after it has been granted. If a trademark is not registered, however, other people may still use the company name.

An example of this would be that XYZ Tech LLP is not eligible for registration unless XYZ Technologies Private Limited Company is. Still, the program can still be branded under the name XYZ Tech. An LLP or company that is registered protects the registration of another LLP or company with the same name but a different one.

What Trademarks Are Similar To Each Other?

Trademarks that are easily confused for one another that already exists are known as similar trademarks. Here, "similar" refers to something that is almost identical. This refers to a mark that is sufficiently similar to another that the typical consumer is likely to be misled or confused by it. In this case, the application examiner will merely take into account the "probability"*, raising the possibility that it constitutes a reasonable confusion. The Company Act of 2013 states that a company names cannot be identical to or confusingly comparable to a registered brand. Thus, in order to stop a corporation or limited liability partnership (LLP) with the same name from being formed, any entrepreneur with an innovative company name idea can register their trademark.

A consequence of utilizing an already-existing company name

Should another business be employing a name that is identical to yours, you might nevertheless be allowed to use it when you can demonstrate that the market will recognize it. Generally, this boils down to whether or not the products or services that the two businesses provide are comparable enough for customers to mistake them for one another.

However, you can run into issues if you attempt registering a brand name that is too close to one already in use by an established business. The other company may bring a trademark infringement lawsuit against you or lodge an objection alongside the state. It is vital to give your business a name that is distinctive and easily recognizable in order to steer clear of any legal issues.

How Can I Recognize the Same or Similar Trademarks?

There are several levels of review that your trademark registration application will go through. Here, the mark and the application process will be closely examined by the Trademark Officer (examiner). When examining the mark, an expert must consider the following factors when determining whether two trademarks registration are similar or identical.

1. Similarity in structure.
2. Visual similarities.
3. Similarity in phonetics.
4. Similarity between corresponding goods or services.

Uniqueness of the registered trademark In addition to keeping an eye on these points, the person who examines needs to: 

1. Examine the marks thoroughly.
2. Remember the public's capacity and factor in average intelligence.

In accordance with Section 11 of the Act, he will deny the application on relevant grounds if he believes that there is a chance that the public will confuse the two marks for one another.

Does registering a trademark prevent its use by other companies?

It's crucial that you don't get in touch with the other party directly if you find out after registration your mark that someone else is using an identical company name. We strongly suggest that you request that a trademarks attorney look into if any infringement has really happened, rather than attempting to resolve it on your own. To assess if infringement has taken place, there are a number of important considerations. If the other party is offering products or services that are similar to or linked to those that are protected by your trademark registration, it will be one of the first things they investigate. It is improbable that businesses operating in diametrically opposed industries will be infringing upon one another, so you cannot expect to sue the other party for using the name of their company infringing upon your rights.  In addition, it's possible that the other dealer was using the registered a brand name before you did, in which case they might argue that your use of it is lawful.  We are able to thoroughly assess the circumstances and offer guidance regarding the viability of your claim of trademark infringement.

To put it simply, trademark infringement happens when someone uses a sign that is so identical to yours that it will confuse consumers in the marketplace as a trademark of the same or similar kinds of goods or services that are protected by your registered trademark.  Because it is not always the case that there has been an infringement, it is crucial to obtain competent counsel in these kinds of instances. It is possible to have identical company names in different industries without confusing customers. Businesses with similar names in different but related categories can cause some blurring of the distinctions. You can stop other individuals from using names that are confusing to customers in the marketplace by registering your brand / business name—or any other distinguishing sign you employ—as a trademark. This gives you the legal right to use the name in connection with the product or service that you have specified. If you don't register your trademarks, you might not be able to stop people from using names that are confusingly similar.

If a Different Company Files a trademark application for a Name That Is Similar to First, What Should I Do?

You can still be able to register the trademark that is identical to someone else's even if they do so before you. First, if an application is still pending, you will have the chance to object to the registration for two months following IP announcement of its approval.  You won't have another opportunity to object to it, though, since you missed that window.  But keep in mind that they might not be able to restrict you from using the company's name if you have been observed using it before the other party. Even when there is a mark that is similar in the trademarks database, you can still get registered trademark if you are the previous user or a legitimate concurrent user. It can be difficult to provide proof for this, therefore you might want to think about hiring a trademark expert.

To ensure that the name you choose—or one that is similar—does not already exist in a similar or related category for the services or products that you plan to offer, your best bet is to conduct market research.  The name you choose for your company should ideally be as distinctive and easily recognizable as possible. Consult a trademark expert if you learn about a comparable company operating in your industry to guarantee you have the best chance of defending your registered brand before the competition tries to outwit you.