I dont intend on opening the business in the US. Its seems the existing business in the US is only operating in California ( they have a few locations). If I register my business here in canada as "squaredwaffles" and the existing business in the us "x-squaredwaffles" decides to expand into canada, could they cause legal problems for me? maybe because they registered theirs first?
Thanks again for the help
You will want to register your trademark in Canada to prevent a US company coming in and registering the name first.
In the US, trademarks gain their trademark rights from use and not from registration of the mark. The first to use a trademark in commerce, therefore, can exercise their rights in a mark and oppose the use or registration of anyone who tries to use the same or similar name as an identifier on the same or similar goods or services. In order to register a trademark in the US, the mark must have first been used in commerce.
Canada has made some rather significant changes to their trademark laws in the last year or so, though, and these will be important for you to review with an IP attorney in Canada. The use of the mark is not a prerequisite to filing for registration in Canada now. It is also the first to register a mark (or "sign") who is the presumed owner of the trademark, putting Canada in line with many of the other countries in the world.
In other words, the differences between US trademark laws and Canadian trademark laws have perhaps increased a bit, so you will want to consult with an IP attorney in your area of Canada to discuss not only the particular trademark you have chosen, but also your business plans. You definitely do not want to start your business off with an infringement suit.