I stupidly opened my carpet cleaning company and only did a quick google search of similar names and nothing came up. Shortly afterwards I found out there's a business in the same trade with a very similar name. My name is "Advanced Carpet Cleaning" and theirs is "Advanced Carpet Cleaners." If I continue, what is my legal liability? Can we both operate in the same trade, in the same geographic area with the same customers? Or will a risk at the very least, being forced to change my name or be sued?
Thanks,
Matthew
What is the name of your state, Matthew?
States will generally not allow you to register the same or similar name for your business, this whether you are in the same business as another company or not (although federal registration could be possible if registration class is different).
Your business name is your trademark. Trademarks also include any logo or slogan that is used to identify your business. Trademarks are used to distinguish your business from all others in the marketplace.
You would be infringing on the rights of the other business if you use a trademark that is the same as, or confusingly similar to, the other business name, and consumers are confused by, or likely to be confused by, the origin of the goods or services being offered. The business, as first holder of the trademark, can potentially get an injunction preventing you from using the name you chose, and the original trademark holder can also sue you for trademark infringement and, potentially, for various and assorted unfair business practices.
The confusion generated by using the same or similar name as another is more likely when the same or similarly named businesses offer the same or similar goods or services in the same geographic area and market their products or services to the same consumers.
I think using your business name as a trademark to identify your company is likely to cause you legal problems and I think you would be smart to come up with a different name. You can consult with an IP attorney in your area for a personal review and opinion.
Good luck.