I’ve been in the startup game for a long time. I’ve seen it all. The good, the bad, and the ugly. And let me tell you, one of the ugliest things you can face as a founder is a lawsuit over your company’s name. It’s a soul-crushing, bank-account-draining experience that I wouldn’t wish on my worst enemy.
I almost learned this the hard way. When I was naming my first company, I was young, naive, and thought I could just pick a cool-sounding name and run with it. I didn’t know a thing about trademarks, and it almost cost me everything. I got a cease and desist letter from a much larger company with a similar name, and I had to scramble to rebrand. It was a nightmare. That’s why I’m writing this guide. I want to help you avoid the same mistakes I made.
Don't Be a Fool: Do Your Trademark Homework
So, how do you avoid this nightmare scenario? It all starts with a simple, yet crucial step: a thorough trademark search. I know, I know, it sounds boring and legalistic. But trust me, it’s one of the most important things you’ll do as a founder. A proper trademark search will tell you if another company is already using a name that’s similar to yours. It’s your first line of defense against a lawsuit.
The Different Flavors of Trademark Searches
There are a few different levels of trademark searches you can do. Here’s a quick rundown:
- The Quick and Dirty Google Search: This is the bare minimum. Just type your proposed name into Google and see what comes up. You’re looking for other companies in your industry with a similar name. It’s not foolproof, but it’s a good first step.
- The USPTO TESS Search: This is where things get a little more serious. The United States Patent and Trademark Office (USPTO) has a free, searchable database of all registered trademarks and pending applications. It’s called the Trademark Electronic Search System (TESS). You need to search this database thoroughly. And I mean thoroughly. Think of every possible variation of your name and search for it.
- The Professional Search: If you’re serious about your startup, you should hire a trademark lawyer to conduct a professional search. They have access to more comprehensive databases and can give you a much more accurate picture of the legal landscape. It’s an investment, but it’s worth every penny.
Common Traps That Will Get You Sued
I've seen founders make the same mistakes over and over again. Here are a few of the most common traps to avoid:
- The "But We Spell It Differently!" Trap: This is a classic. You think you can get away with using a similar name to a competitor just by changing a letter or two. Wrong. The legal standard is "likelihood of confusion." If a consumer is likely to be confused about whether your product is from the same company as your competitor, you’re in trouble. I saw this happen with a startup that tried to name itself "Koke" and sell a soda. You can guess how that ended.
- The "It's Just a Placeholder" Trap: You tell yourself you'll just use a temporary name and change it later. But then you get busy, you start building brand equity, and before you know it, you're stuck with a name that's a legal time bomb. I almost fell into this trap with RemoteTeam. We were initially called "Team Anywhere," but a quick search revealed that name was already taken. We had to go back to the drawing board, but it was much better to do it then than after we had launched.
- The "We're in a Different Industry" Trap: You might think you're safe if your competitor is in a completely different industry. But that's not always the case. If their trademark is famous, it can be protected across all industries. Think about it: you can't just start a car company and call it "Coca-Cola."
My Personal Checklist for Naming a Startup
Here's the checklist I use every time I'm naming a new company. It's saved me from countless headaches, and I hope it does the same for you.
- Brainstorm a dozen names. Don't get attached to any single one.
- Do a quick Google search for each name. Eliminate any that are obviously taken.
- Do a thorough TESS search on the USPTO website. This is where you need to be a detective. Search for every possible variation of your name.
- Check for domain name availability. If the .com is taken, that's a big red flag.
- Check social media handles. You want to have a consistent brand across all platforms.
- Once you have a name that passes all of these tests, hire a trademark lawyer to do a professional search. This is the final step, and it's the most important one.
It’s Your Name, Your Legacy. Protect It.
Look, I get it. All of this legal stuff can feel overwhelming. You’re a founder. You want to build, to create, to change the world. You don’t want to be bogged down in legal minutiae. But the name of your company is more than just a name. It’s your brand. It’s your identity. It’s the first thing your customers will see and the last thing they’ll remember.
I remember when we finally landed on the name "RemoteTeam." It just felt right. It was simple, descriptive, and it captured the essence of what we were trying to build. We went through the whole process I outlined above, and when we finally got the green light from our lawyer, it was a huge weight off my shoulders. I knew we had a name we could build a billion-dollar company on.
Don't let a silly mistake like picking the wrong name derail your dream. Take the time to do it right. It’s a small investment that will pay off a thousand times over in the long run. Now go out there and build something amazing. And if you see someone making one of these mistakes, do them a favor and send them this article. You might just save them from a world of hurt.
The Nuances of Trademark Strength: Not All Names Are Created Equal
One thing that blew my mind when I first started learning about this stuff is that not all trademarks are the same in the eyes of the law. Some are incredibly strong, while others are barely worth the paper they're printed on. It all comes down to where your name falls on the spectrum of distinctiveness.
- Fanciful Marks: These are completely made-up words. Think "Kodak" or "Pepsi." They are the strongest type of trademark because they have no other meaning. The downside? You have to build brand recognition from scratch.
- Arbitrary Marks: These are real words that have no connection to the product or service being sold. Think "Apple" for computers. Strong, but you need to be careful not to pick a word that has a negative connotation.
- Suggestive Marks: These are words that hint at what your product or service does, without directly describing it. Think "Netflix" (suggests movies on the internet) or "Microsoft" (suggests software for microcomputers). This is often the sweet spot for startups.
- Descriptive Marks: These are words that directly describe your product or service. Think "International Business Machines" or "American Airlines." These are the weakest type of trademark and are often difficult to protect. You have to prove that the name has acquired a "secondary meaning" in the minds of consumers, which is a high bar to clear.
When I was brainstorming names for MovieLaLa, we went through this exact exercise. We had a bunch of descriptive names like "Movie-Finder" and "Film-Search," but our lawyer correctly pointed out that they would be impossible to trademark. We eventually landed on "MovieLaLa," which is a more suggestive name. It hints at the fun and entertainment of movies without being purely descriptive.
Thinking Globally: The World Is Bigger Than Your Backyard
In today's interconnected world, it's not enough to just think about trademarks in your home country. If you have any ambition of expanding internationally, you need to be thinking about global trademarks from day one. The last thing you want is to build a successful brand in the US, only to find out that someone else has already registered your name in Europe or Asia.
I learned this lesson the hard way with one of my angel investments. The company had a great name and was doing well in the US. But when they tried to expand to China, they found out that a local company had already registered their name and was selling a knock-off version of their product. It was a legal and financial nightmare that could have been avoided with a little bit of foresight.
So, when you're doing your trademark search, don't just look at the USPTO database. You should also be searching the trademark databases of other countries where you might want to do business in the future. The World Intellectual Property Organization (WIPO) has a global brand database that's a good place to start.
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.
What's the most common pushback you get on this?
People often push back by citing exceptions or edge cases. And they're usually right that exceptions exist. But building a strategy around exceptions rather than patterns is a losing game for most founders.
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.