Legal Question in Business Law in Georgia

Business Name / Non-Compliant Business

I recently formed an LLC in Michigan. I did search business name databases prior to choosing my business name. However, I just found out that there is another LLC in Georgia with the same exact name.

Though we are located in two different states, my business is an Internet business and will have a presence in Georgia and all 50 states. The other thing about the LLC in Georgia is that they did have the name first but their status is active / non-compliant.

I read somewhere that if a business is non-compliant, you can use their business name and I need to know if this is true.

They have not trademarked the name and it appears that their business is local only but of course you never know whether or not they have plans to expand outside of Georgia.

Also, the type of business that each of us is in is not exactly alike but is similar. We are both providers of educational services.

So, I just need to know if I can use the name, legally, of an LLC which is active but non-compliant.

Thank you!

clh


Asked on 6/23/09, 3:06 pm

2 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Business Name / Non-Compliant Business

You have multiple issues and some misinformation. The "non-compliant" designation simply means they have not paid the annual registration for 2009, which they can cure at anytime during the year (and really anytime before the Secretary of State takes action). Only when a company is voluntarily, judicially or administratively dissolved can you register the same name in that state.

Your other issue is an intellectual property one that is much too complicated for this type of forum. However, I can tell you that registering a trademark (there is no such word as "trademarked") is not required for protection of a name as long as the name is being use in commerce and is not an infringement itself in the same industry and geographic location. So, there is a good chance that your company will not be able to use the name in Georgia, at least. You should speak with an intellectual property attorney to determine your rights to the name.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 6/23/09, 3:35 pm
Sarah Grosse Sarah Grosse, Esquire

Re: Business Name / Non-Compliant Business

I will try to clarify the intellectual property portion of this question.

There is a very common misconception that one may register any business name as a trademark. This is not necessarily true. Trademarks are not necessarily business names, and business names are not necessarily trademarks. Trademarks, also called 'brand names' and 'logos', serve as unique identifiers of the source and quality of goods and services to the relevant consuming public. Business names, aka commercial names, identify business entities. If goods and/or services are offered for sale to the relevant consuming public under the same name as the business name, then the business name also happens to be a trademark name. For example, XYZ, Inc. is company that manufactures and sells products under the brand names (trademarks) BUZZ, ZIP, and WINK. XYZ, Inc. may register and own the trademarks "BUZZ", "ZIP", and "WINK" for the particular goods they are used in conjunction with. However, XYZ, Inc. cannot register the name "XYZ, Inc." as a trademark if it does not use that name as a brand name of any goods and services.

From a trademark perspective, you want to be concerned with the brand names of educational materials and services which are already in use and/or registered as trademarks - regardless of the trademark owner's business entity name. Trademarks need not be registered as prior use gives the owner common law rights to the mark. Trademarks which are only used in one state may be registered in that particular state. Trademarks which are used in 'interstate commerce' (multiple states), may be registered with the United States Patent Trademark Office (USPTO). Registration with the USPTO gives the trademark owner exclusive rights to use their trademark in the entire country, regardless of whether they actually sell in the entire country. In all cases, using 'confusingly similar' trademarks for 'confusingly similar' goods and/or services is infringement of the trademark owner's trademark rights.

For an investigation into use of a particular trademark name, you should retain an experienced trademark attorney. You can obtain a search of common law, state, and federal trademarks from several reputable services, but only an experienced attorney will know how to interpret the results properly.

I hope this information was useful. Good luck to you.

Sarah

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Answered on 6/23/09, 4:31 pm


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