I’ve been through the startup naming rodeo more than a few times. Two of my companies, RemoteTeam and MovieLaLa, were acquired. I’ve also invested in over 200 startups, including giants like Anthropic and OpenAI. I’ve seen firsthand how a seemingly simple decision—choosing a name—can lead to a legal nightmare.
Let me tell you a quick story. A few years ago, a founder I know, let’s call him Alex, was on top of the world. He’d just raised a seed round for his new fintech app, “Paymint.” The name was catchy, short, and hinted at what the app did. The problem? He’d never bothered to do a proper trademark search. A few months after launch, a cease-and-desist letter arrived from a much larger, well-established financial services company that owned the trademark for “Pay-Mint.” Alex had to rebrand his entire company. It cost him hundreds of thousands of dollars and, more importantly, months of lost momentum. It was a brutal, entirely avoidable mistake.
That’s why I’m writing this. I want to give you the guide I wish I had when I was starting out. This isn’t going to be a dry, jargon-filled legal brief. This is a founder-to-founder deep dive into how to protect your startup from a naming lawsuit.
Why Your Startup's Name is a Legal Minefield
Your startup’s name isn’t just a marketing tool; it’s a legal asset. It’s the foundation of your brand, and if you don’t own it, you’re building on quicksand. The biggest legal risk you face when naming your startup is trademark infringement. In simple terms, a trademark is a word, phrase, symbol, or design that identifies and distinguishes the source of the goods of one party from those of others. If your startup’s name is too similar to an existing trademark in your industry, you could be sued.
And it’s not just about the exact name. The legal test is “likelihood of confusion.” If a consumer could be confused about whether your product is affiliated with another company, you’re in trouble. This is where things get tricky. The lines can be blurry, and the consequences of crossing them can be severe.
My Four-Step Framework for Bulletproof Naming
Over the years, I’ve developed a four-step framework for naming startups that has saved me and my portfolio companies a lot of headaches. It’s not a substitute for legal advice, but it will help you spot and avoid the most common pitfalls.
Step 1: Brainstorm, But Don’t Fall in Love
The creative part is fun. You and your co-founders will spend hours, maybe even days, brainstorming names. You’ll fill whiteboards, buy domain names, and get attached to a few favorites. My advice? Don’t. At this stage, you should be generating a long list of potential names, not picking a winner. The goal is to have options, because I guarantee you, many of your initial ideas won’t survive the legal gauntlet.
When I was naming RemoteTeam, we had a list of over 50 names. We knew we wanted something that was simple, descriptive, and easy to remember. We also knew that the remote work space was getting crowded, so we needed a name that could stand out. We didn’t get emotionally attached to any single name until we had done our due diligence.
Step 2: The 30-Minute Trademark Search
Before you go any further, you need to do a basic trademark search. This isn’t a comprehensive legal search, but it will help you eliminate the obvious non-starters. Here’s how you do it:
- Google is your friend: Do a simple Google search for your potential name. See what comes up. Are there other companies in your industry with a similar name? If so, that’s a red flag.
- Check the USPTO database: The United States Patent and Trademark Office (USPTO) has a free, searchable database of all registered trademarks. It’s called the Trademark Electronic Search System (TESS). It’s not the most user-friendly tool, but it’s essential. Search for your name and variations of it. Pay close attention to the “goods and services” listed for any similar trademarks. If they’re in the same ballpark as your startup, you have a problem.
- Don’t forget state-level trademarks: In addition to the federal USPTO database, each state has its own trademark registry. You’ll need to search the database for the state where your business is incorporated and any other states where you plan to do business.
This 30-minute search will likely eliminate a good chunk of your list. That’s a good thing. It’s better to find out now than after you’ve spent a fortune on branding.
Step 3: The “Likelihood of Confusion” Test
This is where things get a bit more subjective. The “likelihood of confusion” test is the legal standard for trademark infringement. It’s a multi-factor test, but it boils down to a few key questions:
- How similar are the names? This isn’t just about spelling. It’s also about sound and appearance. For example, “Koke” is too similar to “Coke.”
- How similar are the goods or services? The more similar your products are, the more likely it is that consumers will be confused. If you’re launching a new soda called “Koke,” you’re going to have a bad time. If you’re launching a new accounting software called “Koke,” you might be okay.
- How strong is the existing trademark? Some trademarks are stronger than others. Fanciful names (like “Kodak”) and arbitrary names (like “Apple” for computers) are the strongest. Descriptive names (like “The Weather Channel”) are weaker. Generic names (like “Aspirin”) have no trademark protection at all.
When we were naming MovieLaLa, we knew we were entering a crowded space. There were a lot of movie-related apps out there. We chose a name that was fun, memorable, and, most importantly, legally defensible. We did our homework, and it paid off. The company was eventually acquired by Gfycat.
Step 4: When in Doubt, Hire a Lawyer
I’m a big believer in founder resourcefulness. There’s a lot you can do on your own. But when it comes to trademarks, there’s no substitute for professional legal advice. A good trademark lawyer will do a comprehensive search, give you a legal opinion on your chosen name, and help you navigate the registration process. It’s an investment that can save you a fortune in the long run.
I’ve seen too many founders try to cut corners here. They’ll use a cheap online service to file their trademark application, only to have it rejected for a technicality. Or worse, they’ll skip the legal advice altogether and end up in a lawsuit. Don’t be that founder.
My Final Take
Choosing a name for your startup is a big deal. It’s the first step in building a brand that will hopefully, one day, be a household name. But it’s also a legal minefield. By following this framework, you can avoid the most common pitfalls and set your startup up for success. Don’t let a naming dispute be the thing that kills your dream. Do your homework, be smart, and when in doubt, get professional help. Your future self will thank you.
Frequently Asked Questions
What experience informs this perspective?
This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 200+ startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.
How has this view evolved over time?
My thinking on most topics has changed significantly over the years. Early in my career, I held many conventional views that experience proved wrong. I try to update my beliefs when the evidence changes.
How can I apply this thinking to my own situation?
Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.
Do all experts agree with this view?
No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.