When you start a business, one of the first things you’ll need is a name. But here’s where it often gets confusing. Registering a business name is not the same as owning a trade mark. They serve different purposes, and understanding the difference is crucial if you want to protect your brand properly.
Business Name: A Legal Requirement
A business name is the name under which you operate your business. In Australia, you must register a business name with the Australian Securities and Investments Commission (ASIC) if you trade under anything other than your own personal name or if your business name is different to your company name (which is also registered with ASIC).
For example:
- If Jane Smith sells handmade candles as Jane Smith, no business name is needed.
- If she sells them as Glow & Co., that name must be registered as a business name.
But here’s the key point:
Registering a business name doesn’t give you any ownership rights. It doesn’t stop someone else from using the same or a similar name. It’s simply a record so customers and government agencies know who is behind the business.
Trade Mark: Legal Protection for Your Brand
A trade mark is a legal right that protects your brand. You can register a trade mark with IP Australia for things like your business name, logo, slogan, or even a unique sound or shape that identifies your goods or services.
Unlike a business name, a trade mark gives you:
- Exclusive rights to use the mark for the goods/services you registered.
- Legal power to stop others from using a confusingly similar name or logo.
- A valuable asset you can license or sell as your business grows.
For example, if Jane registers Glow & Co. as a trade mark in Class 4 (candles and related products), she can take action against others who try to sell candles under a similar name.
The Common Confusion
Many business owners think that once they’ve registered their business name, they’re protected. Unfortunately, that’s not the case. A business name alone doesn’t stop others from copying you, and you could even be infringing on someone else’s trade mark if you didn’t check before registering.
That’s why it’s wise to:
- Search the trade mark register before deciding on your business name.
- Register your trade mark to secure your rights and build a defensible brand.
Quick Comparison
| Business Name | Trade Mark | |
|---|---|---|
| Who you register with | ASIC | IP Australia |
| Purpose | Legal requirement so people know who runs the business | Protects your brand and reputation |
| Rights granted | None, just a record | Exclusive rights to use and defend your mark |
| Stops others using it? | No | Yes, for your registered goods/services |
Key Takeaway
A business name is about compliance. A trade mark is about protection.
If you’re serious about building a brand that lasts, registering a trade mark is the step that gives you real ownership and control.