Important Insights To Know On Trademark And Trade Name

This article provides the important insights to know on trademark and trade name. More often than not, business owners think that registering a trademark is unnecessary because they have already registered their trade name or company name with the Companies Commission of Malaysia (CCM). Without realising the differences between a trade name and a trademark, business owners believe that trade name registration with CCM will prevent other entities or business competitors from using the same trade name, thereby dispensing with the need for the registration of a trademark.

But is that true? Certainly not. It is nothing but a misconception to think that a trade name is similar to a trademark. In this article, we will explore the main differences between a trade name and a trademark to clear up any confusion.

What is a trade name?

A trade name is the distinct name used by a business entity for incorporation with CCM, serving as the legal name for the entity. The proposed trade name, such as ‘Good Day Restaurant’ or ‘Kedai Dobi Sunshine,’ requires approval from CCM before the business entity’s incorporation.

The trade name will be utilized in all contracts and invoices issued by the business entity. Additionally, it is often displayed on the business storefront, becoming the primary way people refer to the relevant business.

What is a trademark?

A trademark is any visually representable sign capable of distinguishing goods or services of one undertaking from those of others. This includes letters, words, names, signatures, numerals, devices, brands, headings, labels, tickets, shapes, colours, sounds, scents, holograms, positioning, sequences of motion, or any combination thereof.

While there are instances where a trade name overlaps with a trademark, it is evident that a trademark goes beyond a mere trade name. Acting as a marketplace source indicator, a trademark is fundamental for brand recognition, allowing clients to differentiate the brand from others. It is noteworthy that the most impactful trademarks establish a seamless connection in the consumer’s mind between the goods or services and the business offering them.

Why is trademark registration important?

Essentially, trademark registration is crucial beyond registering a trade name. Upon registration, a trademark provides protection for a minimum of ten years and renewable upon expiry. This protection prevents competitors from copying, imitating, or making slight modifications to the same trademark design. Such safeguards are essential to avoid confusion among business consumers, ensuring they aren’t misled into thinking that the goods or services are of a similar quality to those offered by the original business entity.