What’s In a (Corporate) Name? (And How Can I Appeal Rejections?)

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It happens to even the most diligent companies.  You file to register your corporate name in a state where you’re seeking to do business, and before the ink has even dried on the application, you receive notice that your application has been rejected because your proposed name is allegedly too similar to the registered business name of a third party in the state.

You’re distraught – perhaps you had even performed a trademark search to clear the name, and that search didn’t reveal evidence of any use of conflicting names in the marketplace. This was supposed to be a breeze, and a delay could present serious business interruption costs.  How can this happen and what can you do?

The bad news first – sometimes, conflicts like this are unavoidable.  States’ practices vary as to how frequently they remove old or inactive corporate name registrations from their books, meaning your application could be blocked by a company that’s no longer doing any meaningful business in the state, or perhaps never was.  The state may offer little information about the refusal grounds or the blocking party (sometimes, it won’t even issue a written letter) – so obtaining something substantive is often the first step.

The good news – in many (if not most) states, there are formal or informal processes in place to appeal the refusal.  One potential means of appealing is by arguing that no confusion is likely to arise between the parties’ uses of their respective names.  The factors in making that determination often mirror those applied in trademark law – for instance, differences in the names, differences in the businesses, geographic proximity of the parties, etc. – but not always.  Usually, the governing state statute will be posted on the Secretary of State’s website, so you can see what the factors are.

Another potential option is obtaining the consent of the blocking party.  Many states will withdraw refusals if you submit a consent – but be warned, this can be risky.  The blocking party may demand money in exchange for its consent.  And if you have already been using the name, the blocking party may sue you for infringement.

Often, the best way to evaluate your potential options is to call the Secretary of State’s office.  You may be told that the office cannot provide legal advice, but usually you can learn at least what options are available and what the relevant laws might be.  Then, if the path forward isn’t clear, a lawyer or third-party service provider may be able to help.

 

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

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About the Author: Tore T. DeBella

Tore T. DeBella is a partner in the firm's Intellectual Property Practice Group. Tore’s practice focuses on trademark clearance, portfolio management and enforcement, as well as information technology and data privacy/security strategy and compliance. Tore’s unique blended practice offers significant value to his clients, as he is able to counsel on both the “brand value” and “data” implications of various cutting-edge technological issues like social media, website policies and terms, keyword advertising and domain names.

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