Using the word "Realty" in business name?

[hinapin768]

What is the name of your state?
Louisiana

I'm looking into setting up a service that sells leads to real estate agents in Louisiana.

Is there anything that would legally prevent me from using the word "Realty" in the business name? Obviously, we'll be making it clear that we're a referral service and not licensed real estate agents. The only thing I can find governing this is where LREC says the word "Realty" can't be used in team names. This wouldn't be a licensed real estate team working under a brokerage so I don't think that would apply and I'm not sure how much authority LREC would have over referral companies anyways.

Note: I'm talking about the term "Realty", not the term "Realtor" which is a registered trademark.

Any advice would be greatly appreciated. Thanks!

 

[PayrollHRGuy]

I would certainly check with an LA-based attorney with experience in real estate but you should be OK. The word is not copyright protected as REALTOR is.

But you should make sure with that same attorney that your venture doesn't cross the line into something that requires a license.

 

[Taxing Matters]

What is the name of your state?
Louisiana

I'm looking into setting up a service that sells leads to real estate agents in Louisiana.

Is there anything that would legally prevent me from using the word "Realty" in the business name? Obviously, we'll be making it clear that we're a referral service and not licensed real estate agents. The only thing I can find governing this is where LREC says the word "Realty" can't be used in team names. This wouldn't be a licensed real estate team working under a brokerage so I don't think that would apply and I'm not sure how much authority LREC would have over referral companies anyways.

Note: I'm talking about the term "Realty", not the term "Realtor" which is a registered trademark.

Any advice would be greatly appreciated. Thanks!

I think you would take at least some risk that either the federal or state government would find your use of the word "realty" in your business name as being deceptive and/or a unfair trade practice when your business does not engage in business of selling property or brokering the sale of property. Most people associate the word "realty" with real estate brokers and sales people so that would give a lot of people the wrong impression of your business. I strongly recommend that you consult a real estate attorney in your state for advice before you proceed with using that term in your business name. A little money spent on legal advice now might save you a whole lot more down the road. Or choose business name that fits what your business will do without the need to use terms that might lead people to think you are involved in selling property or brokering real estate sales.

 

[adjusterjack]

Merriam-Webster dictionary defines "realty" as "real estate" or "real property" and indicates its usage goes back to the 1600s.

https://www.merriam-webster.com/dictionary/realty

Black's law dictionary defines "realty" as "A brief term for real property; also for anything which partakes of the nature of real property."

https://thelawdictionary.org/realty/

The word, by itself, cannot have copyright or trademark protection. However, in combination with other words, a phrase or a business name might. How you use the word in your business name might be an infringement or, as T-M suggests, deceptive.

Unfortunately, posters like you who ask that kind of question almost always decline to provide the real prospective business name without which no opinion can be made. Hence the advice to consult an attorney.

 

[PayrollHRGuy]

some risk that either the federal

What jurisdiction do the feds have other than copyright protection?

 

[quincy]

What is the name of your state?
Louisiana

I'm looking into setting up a service that sells leads to real estate agents in Louisiana.

Is there anything that would legally prevent me from using the word "Realty" in the business name? Obviously, we'll be making it clear that we're a referral service and not licensed real estate agents. The only thing I can find governing this is where LREC says the word "Realty" can't be used in team names. This wouldn't be a licensed real estate team working under a brokerage so I don't think that would apply and I'm not sure how much authority LREC would have over referral companies anyways.

Note: I'm talking about the term "Realty", not the term "Realtor" which is a registered trademark.

Any advice would be greatly appreciated. Thanks!

Here is a link to the rules and regulations for Louisiana real estate:

http://lrec.gov/laws-and-rules/rules-and-regulations/

You might want to start with Chapter 25.

You have to avoid any deception or consumer confusion, either with your name or your services.

A personal review by a Louisiana business law professional would be smart before you invest too much time and money into developing your company.

edit to add for PayrollHRGuy: intellectual property, which include copyrights, patents and trademarks, and trade secrets, and advertising ...

 

[PayrollHRGuy]

edit to add for PayrollHRGuy: intellectual property.

Which would be covered by copyright law which I mentioned.

 

[quincy]

Which would be covered by copyright law which I mentioned.

Copyrights, trademark rights, patent rights, trade secrets, advertising ... all have both state and federal laws to consider.

 

[PayrollHRGuy]

The word "realty" all by itself isn't covered by any of those things.

 

[quincy]

The word "realty" all by itself isn't covered by any of those things.

Deceptive or false advertising. Trademark infringement.

 

[hinapin768]

Unfortunately, posters like you who ask that kind of question almost always decline to provide the real prospective business name without which no opinion can be made. Hence the advice to consult an attorney.

I hadn't thought of the exact name yet, which is why I hadn't mentioned it. But it'll definitely be something location-based like Cajun Realty or Deep South Realty.

Here is a link to the rules and regulations for Louisiana real estate:

http://lrec.gov/laws-and-rules/rules-and-regulations/

You might want to start with Chapter 25.

You have to avoid any deception or consumer confusion, either with your name or your services.

I don't think Chapter 25 would apply to me. All of the parts of that section appear to apply exclusively to individuals licensed by the commission. I think that the only time unlicensed individuals fall under LREC's authority is when they're practicing real estate without a license.

With that being said, my service definitely wouldn't be involved in that. It's basically just an automated system where agents can pay a monthly fee to have access to leads in their area.

But you're definitely right, it may just be easier to avoid using the word "Realty" to avoid any future headaches. I guess I just thought that if I made it clear that I wasn't licensed and that I wasn't buying/selling/listing properties, I'd be in the clear :/

 

[adjusterjack]

I hadn't thought of the exact name yet, which is why I hadn't mentioned it. But it'll definitely be something location-based like Cajun Realty or Deep South Realty.

Combinations like that would likely be deceptive as they imply that you are a real estate agent.

 

[zddoodah]

I would certainly check with an LA-based attorney with experience in real estate but you should be OK. The word is not copyright protected as REALTOR is.

No, it isn't. Words cannot be protected by copyright law. "Realtor" is a trademark owned by the National Association of Realtors, whose members are the only authorized users of the mark. It is correct, however, that "realty" is not a protected mark.

some risk that either the federal

What jurisdiction do the feds have other than copyright protection?

As noted above, this has nothing to do with copyright law (over which federal courts have exclusive jurisdiction). Trademark law, on the other hand, exists at both the federal and state level. At the federal level, the Lanham Act (found in Title 15 of the United States Code) is the primary body of law, so that's the jurisdiction that the feds have.

The word "realty" all by itself isn't covered by any of those things.

So...you're telling the OP that there's no way the result mentioned in "Taxing Matters'" post might obtain (including both federal and Louisiana state law)? I submit that the cautious approach suggested by TM would be the far smarter approach.

 

[quincy]

I hadn't thought of the exact name yet, which is why I hadn't mentioned it. But it'll definitely be something location-based like Cajun Realty or Deep South Realty.



I don't think Chapter 25 would apply to me. All of the parts of that section appear to apply exclusively to individuals licensed by the commission. I think that the only time unlicensed individuals fall under LREC's authority is when they're practicing real estate without a license.

With that being said, my service definitely wouldn't be involved in that. It's basically just an automated system where agents can pay a monthly fee to have access to leads in their area.

But you're definitely right, it may just be easier to avoid using the word "Realty" to avoid any future headaches. I guess I just thought that if I made it clear that I wasn't licensed and that I wasn't buying/selling/listing properties, I'd be in the clear :/

You should rethink your proposed name. You are not a real estate brokerage.

 

[Taxing Matters]

What jurisdiction do the feds have other than copyright protection?

Federal consumer protection laws that are enforced by the Federal Trade Commission (FTC) and other federal agencies. Chief among these are Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45) that gives the FTC broad authority to go after businesses for engaging in "any unfair method of competition or unfair or deceptive act or practice in or affecting commerce". A deceptive or misleading name used in advertising and promoting a business, for example, would run afoul of that Act and the FTC may go after a business for that.