If you believe registering your business name will stop other businesses using the same name, you’re not alone. Many small business owners are operating under this popular misconception, which could prove a costly experience, both financially and emotionally.

In 2009, the Sensis Small Business Index showed that 31% of small businesses were not aware of the intellectual property (IP) in their business. This figure indicates a significant portion of Australian small businesses are potentially failing to secure their IP and protect their interests in today’s market place.

Although a lot of businesses go to a lot of trouble in securing their fixed assets by installing alarms and securing their premises, they often leave one of their most valuable assets, their name, brand and image vulnerable. No one wants to be placed in the situation of being forced to re-brand, wasting advertising dollars and creating confusion for their client base.

A trade mark registration means you own that mark and can take action should a competitor infringe your trade mark. So if your brand, logo or image is important to you, registering a trade mark is a good idea.

Only a trade mark registration will provide you with ‘ownership’ of the name of your business right across Australia. Through registering your trade mark and ‘owning’ your name, you can take steps to protect your reputation and the goodwill that you have built up in your business.

Real Life Case
In 2004, Lush Puppy’s retail stores launched with much bravado, as Channel 10’s small business program, Bread TV, followed Kristy’s start up journey. With this exposure, Lush Puppy had a huge beginning, selling out of many products within the first couple of weeks.

After this exposure, Kristy Andrusko was sent a letter by the legal advisor of another business informing her that her business name was infringing another company’s registered trade mark, and that legal action would result if she didn’t cease trading under the Lush Puppy name.

"The irony of the situation was that when I first set up my business I kept thinking to myself, I’m going to have to trade mark the Lush Puppy name so no one rips me off, then someone sends me a letter saying that I was trying to rip them off," Kristy said.

"I didn’t even know that this company existed, let alone have any intention of ripping them off, so I was devastated when I received the letter!"

"I didn’t even stop to think that I might be infringing a registered trade mark with my Lush Puppy name. I assumed that when the business name search was done, I’d be told if it would cause any problems," Kristy said.

"It wasn’t until I looked at how I should have set up my business, that I saw “The next couple of months went by in a real blur,” Kristy said. “I was extremely embarrassed about the situation, and didn’t know what to do."

But Kristy showed tenacity, deciding to move forward from her mistake and re-brand Lush Puppy, leaving no intellectual property stone unturned along the way.

“I had to think of a new name really quickly so I could get my stock redesigned and manufactured,” Kristy said.

A good strategy to consider is to register both a trade mark and a business name at the same time prior to launching a new business venture.

Tips for registering a trade mark for a new logo, slogan, product or business

• Remember not everything can be registered as a trade mark. Generic terms that other businesses have a need to use, such as Classic, can be hard to register as a trade mark. Common surnames and geographical place names can also be difficult to register.
• Brainstorm a range of ideas or potential names to increase the chances of securing one that you want.
• Always search the trade marks database and check out other goods and services in the market to ensure you aren’t infringing on someone’s existing IP.
• IP Australia’s TM Headshart service is easy to use and provides you with a response within five working days.
• If you have any doubts, get professional advice.

More information
IP Australia’s TM Headshart service only costs $90 per class of goods/services to have your trade mark assessed for registrability and you receive a response within five working days.

You can access the service by visiting www.ipaustralia.gov.au.

Information provided by IP Australia, Australian Government.