Making a name in the proverbial sense is one thing, but choosing a name for your business is also important.
Trade names, company names and brand names are often used interchangeably. Yet they may differ from each other and serve different functions. What exactly is the difference? We are happy to explain that for you.
What is a trade name?
The trade name is the commercial name under which your company participates in commerce. This name makes your business known to the general public and distinguishes it from others.
The right to a trade name requires no formal registration procedure, but belongs to the one who is the first to have one visible, public and continuous use of it, for example through the website. Of course, it may be useful to have the trade name registered with the Crossroads Bank for Enterprises anyway, so that you can prove its first use.
When you have first use on a trade name, you can prohibit your competitors from using that name, to the extent that its use is confusion creates with your business. This protection applies only within the area in which your trade name is known and can vary depending on its fame. So the more well-known the trade name is, the greater the protection.
Important: Are you no longer using the trade name? Then your protection expires. So keep using your name active use To avoid this.
What is a brand name?
Although a brand name is known to the general public just like a trade name, it has a different function. A brand name distinguishes certain products and services of your business, while your trade name serves to distinguish it from other businesses.
For example, consider Pepsico: this company includes brands such as Pepsi, Lay's and Quaker. However, it is also possible for the trade name and trademark to coincide. Consider Coca-Cola.
When choosing a trade name, at least consider registered trademarks and vice versa.
Unlike a trade name, the use of the brand name does require a official registration. A registered trademark creates a monopoly: others may not use your brand name in the region of protection. For example, if you register your trademark at BOIP (Benelux Office for Intellectual Property), the protection applies in the Benelux countries.
Through the European SME Fund's IP vouchers, SMEs can get a refund asking for (part of) the registration fee.
What is a corporate name?
The company name (or corporate name) is the official name which is used in the corporate documents of your legal entity (such as the articles of incorporation) and serves to identify your company.
The rights to a corporate name are not automatically obtained by its mere first use: the protection arises only from its publication in the Belgian Official Gazette!
Whoever acquires a corporate name first has the exclusive right on the use of this name throughout Belgium. Other legal entities cannot choose the same company name and may be forced to change the name and pay damages if the company name is too similar.
Unlike the trade name, the company can only one corporate name possess.
The corporate name and trade name can coincide perfectly, but this is not necessarily so.
Always check availability
Choosing a name? Always do a check first. You can use the Crossroads Bank for Enterprises (CBE). and the Belgian Official Gazette (BS) Check whether your desired trade or company name is already in use.
Are you working with Titeca for your incorporation? Then we will be happy to do the check for you, whether or not in consultation with the notary.
Have questions?
If you have any questions after reading this article, please feel free to contact with us.
