How to protect a business name
Unincorporated businesses like sole traders and general partnerships have limited legal protection over their business names. Whether they operate under a personal name or a distinct trading name, there is a risk that another business could legally start using the same name, as there is no exclusive right or registration process for unincorporated business names in the UK.
The passing off law may provide some level of protection against others using a similar business name if it causes confusion and damages the original business’s reputation. For more robust and comprehensive protection, registering a trademark is an effective approach. However, many business owners opt to form a limited company, as this legally protects the business name by preventing others from registering a company with the same or a very similar name. The options and strategies for safeguarding business names are discussed further below.
Check if your preferred business name is available
When starting a business, it’s essential to check if your desired business name is already in use. Begin by using the Companies House name availability checker to see if the name is taken. You can also use free tools like Startxpress’ online company name checker, which delivers same results.
This check is crucial not only when forming a limited company but also when establishing a sole trader business or general partnership. Ensuring the name isn’t already in use helps protect your brand and avoid potential legal issues.
You can conduct additional checks by:
- Searching online to see what results appear – this may reveal whether another sole trader is already using the name or if there are any negative associations.
- Checking the trademarks database and trademarks journal to find out if someone has registered or applied to register a similar or matching trademark in the UK.
- Entering the name on social media platforms like Facebook, Instagram, and TikTok.
- Searching the domain name database to verify if the domain is available for your business website and email addresses.
A registered company or another business might already be using the name or a similar one. To avoid legal complications and potential confusion, make sure the business name you choose is unique.
Set up a limited company to protect your business name
Registering a company name with Companies House is one of the most effective ways to protect your business name. This option is available to sole traders and general partnerships, even if you don’t intend to trade through the company (though you can if you wish).
Once registered, no other UK company can use your company name. However, you must follow specific company name regulations, including restrictions on certain sensitive words and expressions.
To protect a business name, it’s essential that the chosen name is neither identical to nor “too similar” to an existing company’s name:
- “Same as” name: This occurs when the only difference from an existing name is (i) certain punctuation or special characters, or (ii) words or characters that are commonly used in company names or are similar in appearance or meaning.
- “Too similar” name: If a complaint is made that the chosen name closely resembles an existing company name, Companies House will review the case. If they determine the name is “too similar,” the newly registered name may need to be changed.
To protect a business name, you can form a limited company through Startxpress UK Company Formation Packages. This includes a London registered office, a London service address.
Protect your business name with trademark registration
Trademark registration offers another way to protect your business name. A trademark can include words, sounds, logos, colors, or a mix of these elements.
When you register a trademark, you gain exclusive rights to market and sell products with that mark. You can also stop others from using similar marks to promote their products.
After selecting a business name, search the trademark register to see if anyone has already registered a similar or matching trademark.
Additionally, review trademark applications accepted in the past week by checking the following:
- the Intellectual Property Office’s online trade marks journal – for UK trade marks and international trade marks that include the UK
- the Guernsey online trade marks journal – for Guernsey trade marks
If everything looks good, you can apply online to register a trademark and protect your business name. To proceed, you’ll need:
- details of what you want to register – e.g. the words you want to use
- the personal or business details of the intended owner of the trade mark
- the types of products (known as ‘classes’ and ‘terms’) you intend to use your trade mark for – read the guidance on what to do before applying
Once your business name is registered as a trademark, you can:
- take legal action against those who use the name without your permission (including counterfeiters)
- put the ® symbol next to your business name – this shows that it’s yours and warns others against using it
- sell and license your brand
Your trade mark protection will last for 10 years. You’ll need to renew it every 10 years for it to remain in force.
How does the law of ‘passing off’ protect my business name?
The common law of “passing off” is the only automatic form of name protection for unincorporated businesses. It applies to unregistered or “common law” trademarks—marks that businesses use to differentiate their products from competitors without registering them with the UK Intellectual Property Office (UKIPO).
Passing off happens when someone, either intentionally or unintentionally, presents their products as those of another person or business. This misrepresentation can harm the other party’s goodwill and result in financial or reputational damage.
This is especially relevant for competing businesses in the same industry targeting the same customers.
Here’s how it works:
If an established business (X) has built up “goodwill” (such as brand reputation and customer trust), a new business (Y) should not be allowed to present itself as X, for example, by using a similar name or mimicking its branding.
For example, if business X sells apples under the name ABC, business Y should not try to deceive customers and gain market share by also using the name ABC to sell apples. However, if Y sells oranges, it can legitimately use the name ABC because it would be hard to claim that Y is exploiting X’s goodwill when offering a different product.
The law of passing off is complex and often challenging because proving the intent to exploit goodwill is not always straightforward. As a result, unincorporated businesses often choose to form a limited company for greater protection of their business name.
Securing domain names
Registering a domain name is another effective way to protect your business name. Keep in mind that registering your name as a company or trademark doesn’t automatically grant you rights to the corresponding domain. Owning the domain allows you to use it for your website and business emails, helping to establish your brand identity and making it easier for people to find you online. Imagine the frustration and issues that could arise if someone else registered your business name as a domain.
It’s also wise to secure domain names with various extensions, such as .com, .co.uk, and .net. This adds extra protection and reduces the risk of others misusing or hijacking your business name.
Monitoring for infringements
Monitoring for any infringements related to your business name, domain names, trademarks, and overall brand is crucial. You can do this by regularly searching:
- the Companies House search service
- the trade marks database
- domain name registries
- search engines (e.g. Google)
- social media platforms
- online marketplaces
Managing these ongoing checks internally can be difficult and time-consuming. Instead, consider using a professional brand or trademark monitoring service. These providers will handle the work for you, detect any infringements related to your business, and advise you on how to address them.
Do you have any other questions?
To protect your business name in the UK, consider registering it with Companies House, obtaining a trademark, and securing relevant domain names. These steps help establish legal ownership, prevent others from using similar names, and protect your brand identity. Additionally, monitor for potential infringements regularly to ensure continued protection.
For more details on safeguarding your business name, visit the Startxpress Help Center and Blog. If you need further assistance, feel free to reach out to us at support@startxpress.io!
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