Friday, March 18, 2011

Registering a Business Name, Registering a Company Name, Reserving a Company name, and registering a Trade Mark: an explanation

Christopher Balmford, MD

At Cleardocs, we sometimes get calls from people who are confused about company names and business names. They wonder:

  • Aren’t they the same?
  • What are the differences etc.?

This blog aims to help.

Why do people register names?

People register names, generally, for these 3 purposes:

  • to set up a business, a trustee company, or another organisation — by registering a company, which involves choosing a name for the company;
  • so as to have a trading name to trade under — for example, as a person, a partnership, or an organisation. They do this by registering a business name; and
  • to protect intellectual property so other people can’t use the name. Usually, the best way to do this is by registering a trade mark. But registering a business name or a company name can help, see below.

Where do the various name registrations apply?

The names registrations apply as follows:

  • business names are registered, and regulated, on a state and territory specific basis through the relevant government department in each state or territory. You can see a list of each state or territory’s organisation and their website here. You can register the business name online through those websites;
  • company’s (and therefore their names) are registered Australia-wide through ASIC, that is the “Australian Securities & Investments Commission”; and
  • trade marks are registered Australia-wide through IP Australia.

What names can you register through Cleardocs?

You can use Cleardocs:

  • to register a company with the name of your choice, see here;
  • to reserve a company name with ASIC, see here; and
  • to register a trade mark to protect intellectual property in the name, see here.

How does a registered or reserved company name or registered business name limit other uses of the same name?

Business name registered If someone registers a name as a business name in any state, or territory, say South Australia, then:

  • nobody else can get an Australian company with that name in Australia; but
  • someone can register the same name as a business name in any other state or territory (apart from South Australia).

So the business name registration in one state or territory:

  • blocks the business name in that state or territory (but not in any other state or territory); and
  • blocks the company name registration throughout Australia (though the person who owns the business name can arrange to register a company with the same name — by the way, the Cleardocs interface specifically allows for this).

Company name registered If someone registers a company, then nobody else can register the same name as a business name in any other state or territory. That’s it — the company name registration blocks all business name registrations.

Company name reserved If someone reserves a company name, then nobody else can register the same name as a company name while the name is reserved. You can read about this on the ASIC site here. The information on ASIC's site doesn't say whether reserving a name as a company name prevents anyone registering the name as a business name. However, the customer service person at ASIC I spoke with said that it does. You can check that:

  • by calling ASIC on 1300 300 630, then pressing 1 and 1 again and speaking to the person there; or
  • by calling the government body that registers business names in your state or territory. Their websites are here.

How does registering a trade mark fit in?

If you register a trade mark, then that prevents anyone registering the same trade mark for the same classes of goods and services for which you registered your trade mark.

However, having a trade mark doesn’t stop anyone registering a business name or company name using your trade mark. But your trade mark registration does give you rights that you can protect (or try to protect) by suing a person who uses your trade mark in relation to the classes of goods and services for which you registered your trade mark.

As the explanation on IP Australia’s website puts it, a “. . . trade mark gives the registered owner exclusive use of the trade mark throughout Australia” for the relevant classes of goods and services. So you can use that exclusive right to stop someone from using your trade mark in their company name or business name. There’s useful information about trade marks on the IP Australia website here — IP Australia is the government body that registers trade marks.

You can read more about registering a trade mark through Cleardocs here. Our system help you to choose the classes for which you might consider registering your trade mark.

More information

You can use Cleardocs:

  • to register a company, see here;
  • to reserve a company name with ASIC, see here; and
  • to register a trade mark to protect intellectual property in the name, see here.

You can call Cleardocs on 1300 307 343.

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