Duplicate business name issues

I personally would steer clear of using a business name and/or domain name of a company already in existence or which has question marks attached to it.

I had much the same experience with a domain name that was available as was the company name on Companies House' register, but when I google searched to see if there were any Trade Marks or Registered Names, I came across two companies of the same name - one in the US and one in Australia. Even though I could have gone ahead, I decided against doing so because I didn't wish to confuse my customers, at best, and invite trouble, at worst.

I found a much better business and domain name after a few minutes' further search which is not used by anyone and has a high volume search but relatively low competing pages.

James

And there's the rub - pretty narly to find out in court the free legal advice wasn't sound advice

What you are doing above is justifying by defining "reasons" that it's OK to use the name. Maybe it's fine. But businesses don't have to race to the web to be allowed to use their business name and a company trademark applies across state lines. Don't talk yourself into a legal hole. Check trademarks and if there's any doubt, spend few bucks for an hour of a specialized attorney's time.

Finding out exactly where you stand before you spend time and money is much smarter than having a wall fall on you later.

kay

No problem. However, it is not free advice. It is just much more affordable. The way JustAnswers is setup, allows for professionals in a certain field (like law) to provide advice to people for a lower rate than it would usually cost if you were to walk into a (let's say) lawyers office and take up an hour of their time.

As always, sound advice from Ms Kay.

You must and will do what you think is best for yourself and your business.

If I were you, though, I'd buy the domain name that you like so much and then approach the existing business of the same name and offer to sell the domain to them at premium rate.

But I'd still detach myself from this "inspiring" domain/business name because I believe that prevention of potential damaging legal problems far outweighs any attachment to a mere name. I had my fingers burned, even though I was legally in the right and the other party was forced (by me) to drop their threatened action.

It was my confirmation name to which I was much attached. Being aware that the name was also in use by a very famous and ancient university college in Oxford, I did what any wise entrepreneur would do. I consulted a solicitor who advised me that whilst the college may not like it, they wouldn't have a legal leg to stand on, particularly if I didn't set up business in Oxford.

I started my bricks and mortar company in another city, altogether and was involved in a business as diverse from their activities as one can imagine. No one in their right mind would have confused my company with that of the august college.

Yet, after three trouble-free and glorious years of trading and just on the brink of clinching a deal with a venture capital company, I received a letter on a heavy parchment paper, from an army of barristers acting for this college with a "Cease and Desist" notice. Not only that, they claimed that I was "passing off" as their client's business and was bound to cause confusion in the minds of their international and national student base.

Not only that, they demanded that I hand over to them all my client data, my applicant data, all my invoices, all my bank statements, all proceeds from sales to date - you name it, they demanded it.

Naturally, I called up my legal chap and demanded that he "sort it" but it was not until the president of the college kindly agreed to see me for an informal chat (which was very cordial, incidentally) was the matter resolved to our mutual satisfaction and action dropped.

Of course, I continued to use the name (because he admitted that the college did not have "exclusive right of the use" of the name) but as my company was due to be incorporated as part of the venture capital investment agreement and I'd already decided to alter the name slightly to describe more accurately our proposed new business expansion, the college was happy to say no more on the subject. I received written confirmation to that effect within a couple of days of that meeting.

But. The cost to my peace of mind and to my business during those eight long and stress-laden weeks was incalculable. Since I was the major revenue generator, my company's sales dropped by 75% during that time and beyond (it takes time to build up momentum) and it very nearly cost me the investment deal I was working on.

Even though the college had no right to the claims made against my company, the cost to my company, even before the matter went to court, was more than I would have been prepared to envisage paying in lost revenue and peace of mind, however justified I may have been in using my own name for my business.

So I speak from experience when I say, if in doubt, DON'T!

James

It's not as "tall order" an order as you may think. Just spend a few hours keyword researching until you find something that a) describes your company's operation; b) has large volume searches and c) has relatively low competing pages.

There's nothing stopping you using the name that you like, even if there are other entities in the same/different state or outside the US with the IDENTICAL name (provided they are not Trademarked or Registered).

BUT... you have to decide whether or not you are prepared to accept the flak that MAY result if those companies decide to take action. Even if they have no just claim, can you afford the time and money to fight that claim? Would you be prepared to lose all the hard work you put in establishing your website business only to see it go down or have your business stall while you are firefighting?

These are questions any business person needs to ask themselves before embarking on using identical company names, even if the orginal company didn't have the foresight to buy the domain name for themselves.

James