The No-BS Guide to How to Avoid a Lawsuit When Naming Your Startup

Published 2026-01-18 · Updated 2026-05-05 · 5 min read · Startup Legal and Compliance · By Sahin Boydas

A comprehensive look at how to avoid a lawsuit when naming your startup. We break down the complex legal jargon into actionable steps for early-stage founders. This is the guide I wish I had.

I’ve seen it a dozen times. A founder comes to me, eyes wide with excitement. They’ve got a killer product, a brilliant team, and a name they’re absolutely in love with. They’ve bought the domain, printed the t-shirts, and plastered it all over their pitch deck. Then, a few months later, the letter arrives. Cease and desist. Someone else owns the name. Game over. Or, at least, a very expensive and painful rebranding process begins.

Let me tell you, there are few things more soul-crushing than having to rename your baby. I had a close call with my first company, RemoteTeam. We were so focused on building the product that we barely gave the name a second thought. We got lucky. But I’ve seen friends and portfolio companies get absolutely wrecked by trademark disputes. It’s a rookie mistake, and it’s completely avoidable.

This isn’t another fluffy blog post about “branding.” This is a tactical guide from someone who’s been in the trenches. I’m going to give you the no-BS breakdown of how to name your startup without getting sued. This is the guide I wish I had when I was starting out.

Trademark 101 for Founders (the stuff your lawyer wishes you knew)

Alright, let’s get the legal jargon out of the way. But I’ll keep it simple. 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. In plain English, it’s your brand name. It’s how customers recognize you.

There are two main types of trademarks you need to worry about:

  • Common Law Trademark: You get this automatically just by using a name in commerce. It’s limited to the geographic area where you’re doing business. It’s better than nothing, but it’s not much protection.
  • Registered Trademark: This is the real deal. You file an application with the U.S. Patent and Trademark Office (USPTO), and if it’s approved, you own the name nationwide. This is what you want.

Why is this so important? Because if someone else has a registered trademark for a name that’s “confusingly similar” to yours, they can force you to stop using it. And “confusingly similar” is a very broad term. It doesn’t have to be the exact same name. If it’s in the same industry and sounds similar, you’re in trouble.

The "Knock-off" Test: How to Know if You're Infringing

So, how do you avoid picking a name that’s already taken? You need to do your homework. And I don’t just mean a quick Google search. You need to dig deeper. Here’s my process:

  1. Google is your first stop, but not your last. Search for the name you want. See what comes up. Are there any other companies with a similar name? Are they in your industry? If you find a direct competitor with the same name, it’s a non-starter. Move on.

  2. Check the USPTO database. This is the most important step. The USPTO has a free online database called TESS (Trademark Electronic Search System). It’s a bit clunky, but it’s the definitive source for registered trademarks. You need to search for your name and any variations of it. Be creative. If your name is “Zoomly,” search for “Zoom,” “Zoomli,” “Zoomlee,” etc. If you find anything that’s even remotely similar in your industry, you’re playing with fire.

  3. Don’t forget state trademark databases. Each state has its own trademark database. They’re usually not as comprehensive as the USPTO, but they’re worth checking. You can find them by searching for “[State Name] trademark search.”

  4. Look for common law trademarks. This is the tricky part. Just because a name isn’t registered doesn’t mean it’s free to use. If a company has been using a name for a while, they may have common law trademark rights. So, you need to do some detective work. Search for the name on social media, in industry publications, and on review sites. See if anyone is using it, even if they’re a small player.

My 4-Step Process for Picking a Defensible Name

Okay, so you know how to check if a name is taken. But how do you come up with a good name in the first place? Here’s my framework:

  1. Brainstorm a lot of names. And I mean a lot. Don’t fall in love with the first name you come up with. Get your team together and spend a few hours just throwing ideas at the wall. Don’t filter. Just write everything down.

  2. Categorize your names. Once you have a long list, start to categorize them. I like to use these buckets:

    • Descriptive: These names describe what your company does. (e.g., RemoteTeam)
    • Suggestive: These names suggest a benefit or quality of your product. (e.g., Gusto)
    • Fanciful: These are made-up words. (e.g., Gfycat)
    • Arbitrary: These are real words that have no connection to your product. (e.g., Apple)
  3. Do your due diligence. Now it’s time to put your names through the “knock-off” test. Go through the process I outlined above for each of your top contenders. Be ruthless. If a name has any red flags, cut it.

  4. Pick a name and register it. Immediately. Once you’ve found a name that’s available, don’t wait. File for a registered trademark with the USPTO right away. It’s not that expensive, and it’s the best money you’ll ever spend on your brand.

Don't Be an Idiot: When to Call a Lawyer

I’m a big believer in founder resourcefulness. But there are some things you just shouldn’t do yourself. And trademark law is one of them. While you can and should do the initial research yourself, I strongly recommend hiring a trademark lawyer to do a professional search and file your application. They’ll be able to spot issues you might miss, and they’ll make sure your application is filed correctly.

Yes, it will cost you a few thousand dollars. But a lawsuit will cost you a hundred times that. Don’t be penny-wise and pound-foolish. Your brand is your most valuable asset. Protect it.

I’ve made a lot of mistakes in my career. But the one thing I’ve learned is that you can’t build a great company on a shaky foundation. And your name is a critical part of that foundation. So, take the time to do it right. Your future self will thank you for it.

Frequently Asked Questions

What if I disagree with some of the advice?

Good. That means you're thinking critically, which is exactly what a good founder should do. Take what resonates, test it, and discard what doesn't work for your specific situation. No advice is universal.

How often is this guide updated?

I revisit and update my guides regularly as I learn new things and as the market evolves. The core principles tend to stay stable, but specific tactics and tools get refreshed based on what's working right now.

Is this guide based on real experience?

Every recommendation in this guide comes from direct experience, either from building and selling my own companies, or from patterns I've observed across 200+ angel investments. I don't write about things I haven't personally tested.

Who is this guide designed for?

This guide is written for founders and operators who want practical, actionable advice rather than theoretical frameworks. Whether you're just starting out or scaling an existing business, the principles here apply across stages.

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