Q: Can I use the word muggle in my company name? I’m selling chocolates
A: If you hope to benefit off of the potential intellectual property of another, you may be opening the door to legal action. Whereas using the name "Southwest" when referring to a chocolate company might not give you an issue, referring to a new airline and using the term "Southwest" may likely invite a legal dispute. However, if the chocolate company's main product are chocolates shaped like airplanes, you may still have an issue.
Thus, whether you are likely to be infringing on the trademark of another depends on the specific facts. You want to get your business off in the right direction. Consult a trademarks attorney about the specific facts of your situation to help you determine whether your name is likely to give you issues or not.
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