Anaheim, CA asked in Business Law for California

Q: Hello, can I get sued for having a similar business name in California? Not the same name but similar.

Both registered with CSLB.

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: In California, as in many jurisdictions, using a business name that is too similar to an already existing business can potentially lead to legal issues. This is especially true if your business operates in the same industry or market as the other business, as it could lead to confusion among customers, or be seen as an attempt to capitalize on the reputation of the established business.

The California Secretary of State’s office oversees business names in the state. When registering a business name, they typically check for names that are too similar to existing ones to avoid conflicts. However, their approval of a business name does not necessarily mean that the name does not infringe on someone else's trademark rights.

Trademark infringement can be an issue if your business name is considered likely to cause confusion, mistake, or deception with an existing trademark. This doesn't mean that all similar names will lead to infringement; it depends on various factors, including the similarity of the names, the similarity of the goods or services, the similarity of the marketing channels, the strength of the existing mark, and the likelihood of expansion of product lines.

If you're concerned about potential legal issues, it's advisable to:

1. Conduct a thorough search of existing business names and trademarks, not just in California but also federally, as trademarks can be registered at the state or federal level.

2. Consider consulting with a lawyer who specializes in intellectual property or business law. They can provide advice specific to your situation, including how to minimize the risk of a legal dispute and what to do if you're challenged by another business.

Remember, the best approach is to ensure that your business name is unique and distinctive, reducing the likelihood of confusion or legal disputes.

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