You Can Be Sued for Using Your Own Business Name Without a Trademark

July 4, 2025

The Truth Entrepreneurs Never See Coming

It sounds shocking—but it’s real. You can actually be sued for using your own business name if someone else has already registered it as a trademark. Even if you’ve used the name for years, if another company completes the trademark registration before you, you could face legal consequences. This isn’t a scare tactic—it’s how trademark law works in the United States.


At Masterly Trademarks, we help entrepreneurs avoid this exact nightmare. Company name trademark registration isn’t a formality. It’s a legal defense strategy that could save your business.


Using a Business Name Is Not the Same as Owning It

You might assume that forming an LLC or launching a website gives you full rights to your brand name. Unfortunately, that’s not true. Legal ownership under trademark law comes through official registration with the United States Patent and Trademark Office (USPTO).

Without a registered trademark, your business is vulnerable to:

  • Lawsuits for trademark infringement
  • Cease-and-desist letters
  • Forced rebranding, website shutdowns, and loss of market trust


And in many cases, courts side with the registered mark, not the one who used the name first.


Common Law Rights Are Weak Legal Ground

You may have limited protection through common law trademark rights if you've used your trademark name in business. However, those rights only apply regionally and are difficult to enforce. If a competitor registers your name federally, your rights could vanish.

Common law protections do not:

  • Appear in the public records
  • Grant nationwide trademark protection
  • Allow for border protection or enforcement beyond local courts


That’s why filing a trademark application through the USPTO is critical.


The Trademark Registration Process Is the Real Power Move

To truly own your brand, you must go through the official trademark registration process. This involves submitting your trademark application to the trademark office, a federal agency of the department responsible for protecting intellectual property.

Steps in the registration process include:

  1. Conducting a comprehensive trademark search
  2. Choosing the correct class for your goods or services
  3. Filing with appropriate government filing fees
  4. Responding to any office actions from the examining attorney
  5. Receiving a notice of allowance and submitting a statement of use, if applicable


Skipping these steps or attempting to file alone using platforms like Trademark Engine or Rocket Lawyer often results in errors, final refusal, and wasted time.


Real Business Owners Don’t Rely on Free Searches

Many small business owners rely on basic tools or a “free” trademark search to check availability. But these don’t perform a comprehensive search that includes:

  • The full USPTO database
  • Common law search across digital and print sources
  • International and regional use by other businesses


At Masterly Trademarks, we perform an attorney-led federal trademark search to uncover risks that generic platforms miss.


Trademark Infringement Doesn’t Require Intent

Even if you unknowingly use a name that someone else has registered, you can still be accused of trademark infringement. Courts don’t need to prove bad intent—just similarity and likelihood of confusion. In these cases:

  • You could be sued in federal court
  • You may have to pay trademark cost damages
  • You could lose your business name entirely


That’s a major risk for any startup or small business.


Cease-and-Desist Letters Are Just the Beginning

Receiving a desist letter from another company is more than a warning—it’s the first step toward legal action. If they own a registered trademark and you don’t, you’re already on the defensive. Even if you respond, the burden of proof often falls on you.


Our trademark registration service ensures you never face that situation unprepared.


The Danger of Overlapping Business Names

Thousands of new companies launch every month. Without proper trademark monitoring, it’s easy to choose a name that’s already taken in another industry or state. You won’t know until you:

  • Try to scale or enter new markets
  • Get flagged by another company’s law firm
  • Receive a court summons over your branding


Don’t wait until your growth triggers a legal battle.


What Trademark Registration Actually Gives You

When you register a trademark, you receive:

  • National rights to your trademark name
  • Public notice through the USPTO and Trademark Official Gazette
  • Legal authority to block others from using similar names
  • The ® symbol, showing that your name is legally protected


You also gain access to customs border protection, allowing the U.S. government to stop infringing goods from entering the country.


Trusted Legal Services vs. Filing Alone

There’s a reason serious entrepreneurs turn to professional trademark services. Filing through a law firm like Masterly Trademarks means:

  • Full oversight of the application process
  • Proper classification and wording
  • Timely replies to office actions
  • Reduced risk of rejection or final refusal


And we stay with you after registration, offering ongoing trademark related services like enforcement and monitoring.


How Much Does It Really Cost?

The filing fee for a trademark starts around $250 per class, depending on your application. Add to that the uspto fees, additional fees, and possible corrections later—and DIY quickly becomes expensive.

Our standard package covers everything you need, including:

  • Search and clearance
  • Filing with the trademark office
  • Response to examining attorney feedback
  • Access to ongoing legal services


Compared to the cost of a trademark trial or losing your business name, registration is one of the smartest investments you can make.


What Happens If You’re Sued for Using Your Own Name?

If a company with a registered trademark sues you, you could be forced to:

  • Change your business name
  • Reprint marketing materials and packaging
  • Lose domain and social media handles
  • Pay damages and legal fees


In some cases, you may not even be allowed to sell under your name while the case is pending. The Arizona Supreme Court, among others, has upheld rulings against unregistered users.

A digital graphic with a dark navy background features bold white uppercase text stating:


Startups Are Especially at Risk

Small businesses and early-stage entrepreneurs are the most likely to skip trademark registration, often because they don’t think they’re “big enough” yet. But that’s exactly when you’re most vulnerable.


The minute you start promoting your brand name, you’re open to scrutiny. Protecting your name now saves you thousands later.


The U.S. Flag Means Federal Protection

Registering with the USPTO gives you rights under the states patent and trademark system. That means you’re not just protected locally—you’re protected nationally. With federal protection, you stand behind the U.S. flag, with legal rights in all 50 states.


Let Masterly Trademarks help you claim that protection.


Trademark Filing Is More Than Paperwork It's Legal Protection for Your Entire Business

Many entrepreneurs assume that forming a business entity is enough to protect their brand. But without proper trademark filing, your name is still open to use—or even legal challenge—by one party who files before you. The trademark office, an agency of the federal government, doesn’t automatically protect unregistered names. It takes deliberate action through the filing process to gain legal rights. A qualified trademark lawyer ensures your application is filed correctly, especially for industries like entertainment services where name confusion is common.


Masterly Trademarks provides more than a basic package—we tailor our services to your specific trademark needs, handle USPTO charges, and offer ongoing guidance. For further information on how a trademark protects your brand, our team is here to walk you through every step with the precision and insight your business deserves.


Choosing the Right Trademark Class Is Key to Full Brand Protection

When registering your business name, selecting the correct trademark class is one of the most important steps. Each class represents a specific category of goods and services, and choosing the wrong one can leave your logo, name, or brand exposed. For instance, an approved mark for clothing (Class 25) doesn’t protect your name if you later expand into tech or consulting without an additional filing. Every example of brand protection begins with matching your application to the right class—and that starts with a clear understanding of your business’s scope.


At Masterly Trademarks, we ensure your application includes the proper address, covers all relevant classes, and meets all USPTO standards. Whether you're selling products, offering licensed content, or launching a service-based business, we help you file with confidence and protect every element of your brand from day one.


What Are the Best Trademark Registration Services?

Trademark registration services help people keep their business name safe. The best services do things like:

  • Help you fill out forms
  • Make sure no one else has your name
  • Send the name to the government


They help protect your name so only you can use it.


Don’t Wait to Be Sued Take Control of Your Business Name Today

Your business name is valuable. It’s part of your brand identity, your marketing, and your trust with customers. But without company name trademark registration, you’re risking everything. At Masterly Trademarks, we guide entrepreneurs through the trademark registration process step by step—so you never face a legal threat unprepared.


Contact us at (972) 236-5051 to book your free consultation. We'll answer questions, review your trademark risks, and help you register before someone else does.


Make the smart move. Own your name before someone else tries to take it.

(972) 236-5051

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