It is typically best for two businesses to have very unique names that help them stand out. This can be beneficial for branding, customer awareness and much more.
Realistically, though, businesses do sometimes have similar names. For instance, there’s a telecom company called Delta Americas, an electronics company called Delta Electronics and an airline called Delta Airlines. So when can businesses have similar names, and when is it an intellectual property violation?
Will customers be confused?
The best way to look at this is by considering why these IP restrictions exist in the first place. Businesses are not supposed to use the same name because it could cause customer confusion. This would be unfair to these consumers, especially if one business is pulling potential customers away from another company under false pretenses.
But there are many cases in which customer confusion will not occur. One is illustrated above. All of these companies are based in different locations and offer very different products and services. No one who is trying to buy a plane ticket will get confused and purchase products from Delta Electronics.
Geographical differences may also play into the equation. When businesses are in sufficiently different locations, customers may not even encounter both of them, and there would be no chance of confusion. Although it is worth noting that the internet has changed this somewhat, as there is much more of a global marketplace today than there was in the past.
In some cases, serious corporate disputes can arise over the names of the businesses themselves, the products and services they sell and other types of intellectual property. It’s crucial that all involved understand what legal steps they can take to seek a resolution.