Trade Name vs. Trademark: What Is the Difference?
Written by JLG - September 12, 2025
Many business owners assume that registering a business name automatically protects their brand, but that is not the case. While a trade name and a trademark may sound similar, they serve very different purposes under the law. Understanding how they work can help you avoid costly mistakes when building and protecting your brand.
At Jafari Law Group, we work with clients across industries to secure their intellectual property and clarify what legal protections apply to their business names, logos, and branding elements.
What Is a Trade Name?
A trade name is the official name under which a business operates. This is sometimes referred to as a “doing business as” (DBA) name or fictitious business name.
Example:
If you register Green Valley Juice LLC with the state of California, that is your trade name. If you advertise and operate under a shorter name like Green Valley, that would typically be your DBA.
Registering a trade name with your state or county allows you to legally operate a business under that name. It does not, however, give you exclusive rights to stop others from using a similar name.
What Is a Trademark?
A trademark is any name, logo, phrase, or design that identifies the source of goods or services and distinguishes them from others in the marketplace. Trademarks can be registered at the state or federal level, but federal registration with the USPTO provides the strongest protection nationwide.
Example:
If Green Valley is used on product packaging, advertising, or labels for your juices, it may qualify as a trademark. Registering that name as a federal trademark allows you to enforce your rights across the United States and prevent others from using a similar mark in a way that causes consumer confusion.
Key Differences Between Trade Names and Trademarks
A trade name is used to identify your business as a legal entity. It appears on contracts, tax filings, business licenses, and other official documents. Its primary function is to let the public and the government know who is operating the business.
A trademark, on the other hand, is used to identify the source of goods or services you offer to consumers. It is what customers recognize in the marketplace, your brand name, logo, slogan, or product packaging.
Trade names are typically registered at the state or county level and do not give you exclusive rights to use the name beyond your local area. They also do not prevent others from using similar names for different businesses or brands.
Trademarks, especially those registered with the United States Patent and Trademark Office (USPTO), offer much broader protection. A registered trademark gives you the right to prevent others from using confusingly similar marks in connection with related goods or services throughout the United States.
In short, registering a trade name allows you to run your business under that name. Registering a trademark gives you legal tools to protect your brand and reputation in the marketplace.
Common Misunderstandings
“I registered my business name with the state, so no one else can use it.”
Not necessarily. Trade name registration does not stop someone in another state, or even the same state, from using a similar name for their brand. Only a trademark can offer that kind of protection.
“I use the name on my website and packaging, so I am protected.”
You may have some rights through common law trademark use, but those rights are limited to the geographic area where you are actively doing business. Federal trademark registration provides broader and more reliable protection.
Why It Matters
Failing to understand the difference between a trade name and a trademark can lead to:
- Inability to stop a competitor from using a similar name
- Lost rights due to someone else registering your name as a trademark
- Legal disputes that could have been avoided with early trademark protection
If your brand name is important to your business, and in most cases it is, you should consider registering it as a trademark, even if you have already registered your business entity.
How to Protect Your Brand
To protect your business and avoid future conflicts:
- Choose a business name that is distinctive and not already in use
- Conduct a trademark search before committing to a name
- Register your trademark with the USPTO to secure nationwide rights
- Monitor the marketplace for potential infringing uses
At Jafari Law Group, we assist businesses with trademark searches, filings, and enforcement. We can help you determine whether your business name qualifies for trademark protection and guide you through the registration process.We offer a free consultation to review your brand strategy and advise on the best steps to protect your intellectual property. Contact Jafari Law Group today to speak with an attorney.