Naming Your Startup : Legal Perspective

1. Naming Your
Startup : A
Legal
Perspective
Sujatha Ganesan

2. Introduction
You will not just pick any name for your baby----it
is the same with your startup.
A name conjures a lot of things in people’s
minds and so it is important to take the time to
choose the right name for your startup.

3. General aspects
• Unique.--- catchy and have a positive impact on
the audience.
• Simple--- in terms of both the name and its
spelling, it must be easy to pronounce and
remember, this will enable people to find the
company easily online.
• Match Company Name to Domain Name---
more practical and easier to search online.

4. • Flexible--- Allows for addition of products and
expansion to other geographic locations.
Example: Apollo Private Limited, Apollo Tires
Private Limited (specific to tires) and Apollo Tires
Chennai Private Limited (geographic specificity).

5. Legal Aspects: Corporate
& Intellectual Property
Corporate: There are certain regulations by the
Ministry of Corporate Affairs (MCA) for naming
private companies. According to the Companies
Act of 2013, a business name to be registered
should;
--- Not be identical or resemble the name of an
existing company and should be substantially
different. It should not be offensive, contain
profanity or deemed to be undesirable.

6. --- Not merely add something to an existing name of
another company.
Example: Apollo Tires Private Limited (existing
company) and Apollo Tires India Private Limited
(added India and tried to register as a new and
different company name).
--- Not be a misspelled name of an existing company.
Example: Apollo Tires Private Limited and Apollo
Tyres Private Limited.

7. --- It must not be similar to an existing company
name or a trademark in the same field or
industry.
Example: Oranges and Apples Foods Private
Limited and Oranges and Apples Foods LLP, is
not allowed.
Oranges and Apples Travels Private Limited is
allowed (different industry). We will touch on
this while discussing the Trademark aspects.

8. --- The proposed name must state the relevant
type of entity being incorporated.
Example: Private Limited (Pvt Ltd), Limited
Liability Partnership (LLP).
--- Registering the Name: While filing for a name,
a minimum of three names and a maximum of six
names have to be sent to the Registrar of
Companies.

9. Intellectual Property:
Trademark Issues: According to the Trade Marks Act, 1999,
"trade mark means a mark capable of being represented
graphically and which is capable of distinguishing the goods or
services of one person from those of others and may include
shape of goods, their packaging and combination of colours.”
More simply, a Trademark is a sign, mark, slogan, logo or
something used to identify a product or service of the
organization or individual to distinguish it from similar goods
or services originating from a different undertaking.
--- The name of the company could be a trademark and it
becomes a brand name for the company.

10. Use in Similar Area of Business: If someone in a similar
field is using a name as a trademark, then you should not
use the same or a similar name since there is a likelihood
that it will cause confusion as to the origin, source or
quality of the goods or services.
A name as a trademark of another entity can be used if it
is in an unrelated field, but do not use similar logos,
colors, styles etc.
Example: Oranges and Apples Foods Private Limited
Oranges and Apples Travels Private Limited is allowed
(different industry).

11. Different Geographic Location: Traditionally it was O.K to
use to use a similar company name as long as the
business entities were in different geographic locations,
but with the advent of global markets and online
businesses it is best to avoid the use of a name used by
someone in the same area of business.
--- For a name to be trademarked, it must be distinctive
and not generic, for example cannot have Bicycles LLP, if
you are selling bicycles.
--- Registering the name as a trademark gives you
ownership and if it is infringed then gives you a right to
take legal action.

12. Domain Name
Domain name in the online world is similar to a
physical address in the physical world and it
establishes a unique identity.
--- Register the company name as the domain name,
it assists in locating the company online.
---Domain name should not conflict with an existing
commercial name of another company, it will be a
trademark infringement. If a conflict occurs and a
website is created and marketed, you will have to
forgo the site and suffer business losses.

13. --- To be actionable, a domain name must be
registered and protected as a trademark. A similar
domain name to an existing one is likely to cause
confusion as to the source or quality of the product
or service. The customers may end up buying a
different product or services from the intended
purchase.
--- Before registering a domain name, search for the
actual name, similar names, variations in spellings, in
government registrars, the Internet and business
names registrars.

14. --- Check to see if your website offers competitive goods
or services under a similar domain name. Addition of an
Internet related designation such as .com, .net, .edu,
.gov, .org, .in, to an existing company name will not make
it a different name.
--- Similar domain name in same or similar industry of
business is not OK.
Example: A business with an existing domain name
similar to yours, is selling bicycles and you sell bicycle
accessories, it could be considered as infringing.

15. --- It is likely that your website will divert business
away from the existing site with similar name.
Ask, is your domain name so similar to the other
domain name that users might end up in your
website? Is the other business name or domain
name well known?
--- If the answers are yes, then you might have a
legal conflict and be liable for infringement.

16. Copyright Issues:
A simple definition of copyright according to
Wikipedia, “Copyright is a legal right created by
law of a country that grants the creator of an
original work exclusive rights for its use and
distribution”.
--- The company name, logos, designs, colors,
lyrics, quotes etc., associated with a company
name could raise copyright infringement issues.

17. ---Using stock photos, marketing material,
advertisement, as part of a company website
could raise copyright infringement issues.
--- Need to get explicit permission or a license or
give attribution for the creative work to use the
material, unless the author or creator states that
they can be used without restrictions or for
specific purposes.

18. Conclusion
Keep the naming process of the startup simple
and uncomplicated. Do a through search from all
fronts before you decide on a name for your
startup or start conducting business
transactions.
Happy Naming!!