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Few problems can be as
time-consuming, resource intensive, and costly as a trademark infringement.
Armed with a handful of misconceptions, many entrepreneurs unwittingly stumble
onto a legal minefield.
Evidence shows that many inexperienced business
people haven't any idea of how to avoid disruptive infringements or to secure
and protect their prized new names. Following are illustrations about the five
most common myths about trademarks and tips to help large and small businesses
alike avoid a trademark related disaster.

You start a business and
incorporate/register your name with the office of the Secretary of State in
your home state. Once you incorporate and register your fictitious or assumed
name, it's business as usual. Out of the blue, you receive a cease and desist
letter or, worse yet, are served with an infringement suit.
Registering your corporate name, assumed names, and
trade names is not enough. If another party is using the name in commerce as a
trademark, it is subject to the infringement laws already in place on the
federal and state levels. A corporate name registration is by no measure a
trademark registration nor does it protect a business from infringement claims
by owners of trademarks, including federal, state and common law trademarks.

With the proliferation of
e-commerce, many see a domain name and a trademark as synonymous. Again,
misplaced confidence can be costly. Here, too, the law favors trademark
holders, not domain name owners. Recent legislation has given the owner of a
registered federal and/or state trademark greater authority to stop another
party from using an infringing domain name. Selecting and securing a domain
name and a trademark at the same time will insure you've taken every precaution
to avoid domain name and trademark disputes.

This myth is common to the
savvier businessperson who knows that he has to check trademarks before
spending money advertising his new "gadget" or business. This person hires an
attorney and perhaps does searching himself, but his fatal error is that he
only considers federal trademarks. His potential problem occurs when he misses
an important state mark that predates his usage or registration and the owner
of that mark comes after him and stops him from continuing to use the name, or
worse yet, sues him for infringement. The moral of this story is to search both
federal and state trademarks as well as domain names or other "common law"
trademark resources for maximum protection.

Marks don't have to be identical
in order to cause confusion. Subtle changes in spelling (QUIK rather than
QWICK) and presentation, such as run-on words, not two words (Berger King
rather than BergerKing) are as meaningless as the addition of a trivial or
generic term. Confusion can result if marks look, sound or mean alike. If the
mark is used on "related" goods, confusion is likely. Famous trademarks can
cause problems no matter how they are used and get a wide breadth of
protection.

This is no longer the case. Preliminary
"knock out" searches where the objective is to rule out obvious
conflicts are not expensive. Trademark.com offers four search
options: Platinum, Gold, Silver and Bronze, with 12-hour unlimited
subscriptions for $100 or less depending on the databases
you choose. While not a legal opinion, this kind of search
may reduce the list of potential names in consideration, and
provide a picture of the "landscape" as to the name
in that particular market. Trademark.com's databases include
US federal, state, and common law files; international records
from Canada, the United Kingdom, the European Community, and
WIPO; and an extensive domain name collection - all available
24/7. See for yourself how fast, fun, and easy trademark searching
can be.
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