Intellectual property (IP) is an essential part of running a business, but it’s also an area rife with misconceptions. Believing these IP myths can leave your business vulnerable, leading to unnecessary risks, costs, or even legal disputes. At National Business Register, we’re here to set the record straight. Once you have the knowledge around IP, it is up to you to do what is right for your business and what sits best with your way of working, your values and your business strategy.
Let’s tackle some of the most common IP myths to help you better protect your business.
IP Myth 1: A Business Name Is Free to Use if It’s Available on Companies House
Many entrepreneurs assume that if a name is available to register at Companies House, it’s theirs to use freely. Unfortunately, this is not true. Companies House only prevents duplicate company names; it doesn’t check for conflicts with trade marks or other intellectual property rights. You may have taken Joe Bloggs at Companies House, but there is nothing to prevent a Joe Blogs West Midlands, Joe Bloggs marketing, Joe Bloggs clothing or Joes Blogg being set up at Companies House. This could cause real confusion and have a negative affect on your business and your reputation.
If your chosen name is already trade marked or closely resembles an existing trade mark in your sector, you could face legal action – even if Companies House approved it. To avoid these risks:
- Conduct a thorough search to ensure your name is unique and legally defensible.
- Consider registering your business name as a trade mark for full protection.
At National Business Register, our Business Name Protection service ensures your name is not just available but also safeguarded from passing off and imitation. We will undertake searches to ensure the name you wish to use is truly available and we will then cover the first £10,000 of legal work undertaken should there be a case of passing off.
IP Myth 2: You Own Your Domain Name, So You’re Safe
Owning a domain name doesn’t guarantee you the exclusive right to use it. In the UK, if your domain name infringes someone else’s trade mark or business name, they could challenge you through legal action or domain dispute resolution processes.
Even if your domain was purchased in good faith, you may be forced to transfer it or stop using it if it conflicts with existing IP rights. This risk is especially high if your domain name is similar to a well-known brand or trade mark.
To protect yourself:
- Check that your domain name does not infringe existing trade marks.
- Consider registering your domain as a trade mark if it’s integral to your brand identity.
IP Myth 3: All Trade Mark Data Is Easily Accessible Online
It’s tempting to believe that trade mark data worldwide is fully digitised and readily available. However, digitisation varies significantly by country. While some jurisdictions have advanced systems, others still rely on manual processes or outdated paper records.
This can lead to gaps in data, especially when conducting international trade mark searches. Relying solely on online databases can create blind spots, potentially exposing you to legal challenges.
At National Business Register, we use a combination of digital and manual methods to provide comprehensive trade mark searches, ensuring no stone is left unturned.
IP Myth 4: Digitised Trade Mark Data Is Always Accurate and Up to Date
Even in jurisdictions with modern systems, errors and delays can occur. Data entry mistakes, backlogs, and outdated records can all affect the accuracy of trade mark databases. This means that relying solely on digitised data can lead to incorrect assumptions about availability or protection.
High-quality trade mark searches involve more than just automation. Human expertise is essential to identify and correct errors, analyse results, and provide actionable advice.
Undertaking trade mark searches with us will mean that you will also get a view point on the likelihood of a trade mark application being successful. There are some words or names that are unlikely to be accepted as trade marks in certain industries. A trade mark cannot be descriptive of the goods or services for example, so a search by someone not legally trained may well show that Birmingham Bakery is available to be trade marked in the UK as no one owns that trade mark yet. However, this could be because it is very unlikely that a bakery, based in Birmingham will be able to have exclusive use of the words Birmingham Bakery. A mark may not be registered as it is not likely to be accepted by the Intellectual Property Office.
IP Myth 5: Old Trade Mark Records Don’t Matter
Historical trade mark data is often overlooked, but it can be critical in legal disputes, opposition cases, and understanding brand evolution. For example, abandoned or expired trade marks can still hold significance if they have a history of use or relevance to your industry.
Keeping a comprehensive record of past trade marks can give you a competitive edge, especially when challenging a potential conflict.
Protect Your Business with National Business Register
Understanding these IP myths is the first step in securing your intellectual property. Whether it’s ensuring your business name is unique, protecting your domain, or conducting thorough trade mark searches, National Business Register is here to help.
We offer a range of services to safeguard your brand and business, from trade mark registrations to Business Name Protection, ensuring you’re protected from passing off and other risks.
Protecting a business name through trade mark registration or business name protection is crucial for safeguarding a brand’s identity and legal rights. Failure to secure such protection can lead to significant financial losses, legal disputes, and even the demise of a business.
Financial Impact of Inadequate IP Protection
While specific statistics on businesses losing their brand or incurring costs due to lack of trademark protection are limited, numerous cases highlight the severe consequences:
- Legal Disputes and Costs: Engaging in infringement litigation can be prohibitively expensive, often reaching tens of thousands of pounds. For small businesses, these costs can be devastating. Being able to establish ownership of the mark through trade mark protection or through our Business Name Protection product can reduce the time and cost spent on this.
- Loss of Brand Identity: Without trade mark protection, businesses risk competitors using similar names or logos, leading to brand dilution and loss of customer trust.
UK Market Landscape for Sole Traders and Small Businesses
As of early 2024, the UK had approximately 5.5 million private sector businesses, with small and medium-sized enterprises (SMEs) accounting for 99.9% of the business population. Notably, there has been a decline of about 500,000 businesses since 2020, primarily due to challenges faced by sole traders and small enterprises. (The Times)
Consequences of Not Registering a Trade mark
For sole traders and small businesses, not protecting their business name and/or registering a trade mark can lead to:
- Inability to Enforce Rights: Without registration, businesses cannot take legal action against others using identical or similar marks, leaving them vulnerable to infringement.
- Risk of ‘Passing Off’: Unregistered trade marks rely on common law rights, which require substantial evidence to prove ownership and reputation, making legal actions more complex and costly. This is where our Business Name Protection product comes in, as we cover the first £10,000 of legal work should there be a case of passing off. If you do not have a service like this in place, the emphasis is in you to prove the case of passing off and to fund the litigation following this.
- Market Confusion: Competitors may exploit unprotected brands, causing consumer confusion and potential loss of market share.
Benefits of Trade Mark Registration
Registering a trade mark provides:
- Exclusive Rights: Legal ownership and exclusive use of the mark for the registered goods or services.
- Legal Recourse: The ability to take action against infringement and counterfeiting.
- Brand Value Enhancement: Increased brand credibility and potential for licensing opportunities.
In summary, securing trade mark protection is essential for safeguarding a business’s identity and ensuring its long-term viability in the competitive UK market. If you are not able to secure a trade mark for your business name, this may be because the name is too descriptive of the goods or services you provide, the best way forward is by putting Business Name Protection in place.
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📧 info@nbrg.co.uk
Don’t let IP myths put your business at risk. Contact us today to learn more about how we can help you protect your most valuable assets.
