Legal Question in Business Law in New Jersey
Re: Protection of Sole Proprietorship Business Name
Hello.
If I set up a business name under a Sole Proprietorship, is that name (business name) my
property and protected from anyone else using it with an LLC designated added?
Thank you.
2 Answers from Attorneys
As a franchise attorney I can tell you if all you have is a sole proprietor business name, you only have common law rights to the name in your immediate trading area. Anyone else outside this area is free to use it. You should look into getting the name registered, if possible, as either a trademark or service mark. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney
Franchise Foundations APC
Registration of a business name does not create any rights in that name in itself. The only requirement is that the name is unique to the registrar. In New Jersey, proprietorships are still registered with the County Clerk who does no checking as to whether the name is confusingly similar to an LLC or corporation name that is registered with the State. No one checks with any national records. The intellectual property value of a business name, like a trademark, is acquired through its use in connection with providing particular goods or services. Although a trade name and a trademark may be exactly the same [words], they are separate legal concepts. In order to secure the rights in a name, which is desirable prior to investing a lot in it, you should consult a business lawyer who will be able to inquire about your particular situation and advise you as to how best to secure and protect the rights that you may have. This area if law is not easy to understand and you should seek the help of a professional if there is a lot at stake for you.
My firm handles matters of this type. If I can be of further help to you, call or email.
See also: http://info.corbettlaw.net/lawguru.htm
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