Choosing the right business name
- Jo-Anne Hui
- 8 June 2010
Calli Brown and Linda Anderson of Mums On The Go. Photo credit: Anthony
Geernaert
A name that sticks in people’s memories and just rolls off the tongue is pure gold for any budding business.
Lessons from a startup
Who: Calli Brown and Linda Anderson
Company: Mums on the Go Guide Pty Ltd
(nee ‘Yummy Mummy
Guide’)
Years in this business: Yummy Mummy Guide – 1 year. As Mums on the Go – a few weeks!
Years this business has been online: Just launched
“We were inspired to launch a business with a strong online focus as a way to connect with large audiences easily.
Before we registered a domain name, we thought it was just about buying one that was available and knowing that a ‘.com.au’ had to reflect our business name. But after going through the process, we learnt that just because the web is easy and accessible, you shouldn’t be too relaxed about your intellectual property. We were also surprised to find that many of the domain names we liked were taken and the owners of them thought they could sell them for a fortune.
We were oblivious about securing our IP until the Kick Start panel with Nett, when it was suggested we should think about these issues. We then applied to trade mark the name Yummy Mummy Guide, which was rejected. It came as a complete shock! We were then put in the situation of either proceeding unprotected or changing our name so we could be covered. It was a tough decision as we were six weeks out from launching, but we opted for the change, as we believe this business has great potential for growth.
At the time, we were shattered. It was like having to re-name a child. For the first couple of days we actually felt disorientated. If we weren’t Yummy Mummy Guide, who were we? Could we love this new name or business as much as our last? Were we going to identify with it as much?
If think you can become a medium to large business based on a unique concept, trade mark with the assistance of a Trade Mark lawyer. And don’t do it six weeks out from launch!
Do you need a Trade Mark?
Mums on the Go turned to Rebecca Stalenberg of Mark Your Territory ®
for help. She shares some of her advice here.
“Trade Mark infringement is a huge risk if you choose to operate under a name that is substantially identical or deceptively similar to an already registered Trade Mark. If you were sued and lost, a court could order you to change your name, plus award the other business damages, an account of profits and their legal costs incurred – potentially between $50,000 and up to over $250,000!
A Trade Mark is the only way to gain ownership of your brand. By its definition, a Trade Mark is a special sign used to distinguish your goods or services from other traders. So without a Trade Mark, another business can pass themselves off as your business, which can steal your clients and harm your reputation. Instead of spending thousands of dollars fighting in court, secure a Trade Mark for a fraction of that.
Here are some tips on how to go about trade marking your company name.
- First, search to avoid any potential infringement on earlier names.
- Be unique in your proposed name. Don’t just add an extra letter or use phonetics to attempt to change an earlier name.
- Try to secure all the domain name extensions first and similar phonetics. If you can’t, this usually means someone is already using those words for their own business.
- Lodge your application before launching and follow it through to registration to secure an asset and legal right.”
What are the top brand risks businesses face?
Nett asked intellectual property law firm Davies Collison Cave to identify the top brand and IP risks offline and online. Sally Foreman, Senior Associate in Trademarks for DCC, shares some insights.
“Brands or Trade Marks enable people to indentify a business' product or service and are powerful and valuable business assets. They communicate the core values of a business' product or service and foster customer loyalty. Risks brand owners should be aware of include:
- The importance of initially selecting a brand/Trade Mark that is unique, registrable and enforceable and not already in use by a third party.
- Ensuring that the selected brand/Trade Mark does not infringe a third party's rights in an existing brand/Trade Mark. It is imperative that brand owners ensure protection is in place in a jurisdiction before launching a product or service in a marketplace.
- Protecting the brand/Trade Mark. Businesses should consistently monitor and pursue third party infringers of a brand/Trade Mark.
- Misuse of a brand/Trade Mark by its owner. Businesses should ensure that a brand is used consistently in its proper form, that is "as a Trade Mark", to prevent the brand/Trade Mark from becoming generic.
- Cybersquatting of a brand. Businesses should register domain names which correspond to a brand/Trade Mark, even if only for defensive purposes, to prevent cybersquatting.
- Misuse of brands or Trade Marks as Google Adwords by third parties. It is important to register brands/Trade Marks with Google to prevent third party use of the same as Google Adwords.
- Misuse of brands/Trade Marks as usernames on social networking websites ("SMW"). To reduce the risk of misuse of brands/Trade Marks on SMWs, brand owners should register their brands/Trade Marks as usernames on SMWs including Facebook, YouTube and Twitter.”
Want to choose the perfect domain name? Here's a free e-book from Netregistry on how to do just that.
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