In Australia, many business owners assume that registering a business name with the Australian Securities and Investments Commission (ASIC) automatically grants them exclusive rights to the name. But in truth: it doesn’t. If you want to truly protect your brand, registering a business name is just the start, not the finish line.
At brandU Legal, we work exclusively in the intellectual property (IP) space, helping businesses understand the legal landscape around brand protection. In this article, we break down the critical difference between a business name and a trade mark, and explain why your ASIC registration simply isn’t enough to secure your brand’s future.
What is a Business Name?
A business name is the name under which you operate your business. It’s registered with ASIC and is required by law if you’re trading under a name other than your own personal name. Registering a business name allows customers and the government to identify who is behind the business.
But importantly a business name:
- Does not give you any ownership rights over the name
- Does not stop someone else from using a similar or even near identical name
- Does not give you legal grounds to prevent copycats or brand misuse
Essentially, registering a business name is a formality. It’s administrative, not protective.
What is a Trade Mark?
A trade mark is a legal right granted by IP Australia that gives you exclusive rights to use your brand name, logo, slogan, or other distinctive signs in relation to your goods or services.
When you register a trade mark:
- You get the exclusive legal right to use the mark for the goods/services you’ve listed
- You can take infringement action against others who use it without permission
- You gain a powerful asset that can grow in value and be licensed or sold
Unlike a business name registration, a registered trade mark is enforceable and provides real, meaningful protection.
ASIC Registration vs. Trade Mark Protection: Key Differences
| Feature | Business Name (ASIC) | Trade Mark (IP Australia) |
|---|---|---|
| Legal Ownership | No | Yes – exclusive legal rights |
| Protects Against Copying | Yes – difficult to prove | Yes – enforceable under law |
| Required by Law | Yes, for trading under a name | No, but highly recommended |
| Covers Specific Goods/Services | No – applies generally | Yes – based on chosen classes |
| Can Be Sold/Licensed | No | Yes – valuable business asset |
| Grants National Protection | No – only registers your business name | Yes – national legal protection |
Real-World Risk: What Happens Without a Trade Mark?
Let’s say you register a business name like “Coastal Bean Coffee” with ASIC and begin operating your café in Byron Bay. Six months later, you discover another café in Perth using the exact same name and they’ve registered the trade mark “Coastal Bean Coffee” for café services.
Guess what? They now have the legal upper hand, even if you were trading under the name first. Without a registered trade mark, you may have no way to stop them.
Why ASIC Tells You It’s Not Enough
Even ASIC themselves are clear on this issue. When you register a business name, they include this statement:
“A business name registration does not give you exclusive rights over that name.”
Yet, many business owners overlook this detail until it’s too late. That’s why understanding the IP landscape and registering your trade mark is essential from the beginning.
Your Brand is Your Most Valuable Asset
At brandU Legal, we’re specialists in IP, and we’ve seen the damage that lack of trade mark protection can cause from court battles and forced rebrands to losing hard-won market recognition.
We work with clients across industries, offering smart, strategic legal advice focused solely on IP. Whether you’re a startup, a small business, or an established company expanding into new markets, we help you secure and defend what matters most: your brand.
Final Word: Don’t Confuse a Business Name with Brand Ownership
Registering your business name with ASIC is a regulatory requirement. But it’s not brand protection.
If you’re serious about building a brand with staying power, a trade mark is the only way to ensure you have the exclusive rights to use and defend your name, logo, or slogan.
Ready to protect your brand?
At brandU Legal, Your Brand is Our Business™. Get in touch to find out how we can help you safeguard your most valuable business asset with the right trade mark strategy from day one.