Trade name, company name or brand: what do you need to know as a (starting) entrepreneur?

Company name

The company name is the official name of your company and serves to identify the company in economic transactions. This name is included in the deed of incorporation and the articles of association of the company and is published in the Belgian Official Gazette. From the publication, the protection of the company name extends to the whole of Belgium.

As an entrepreneur, it is best to choose a company name that is different from existing names to avoid confusion. It is expected that you act diligently and conduct prior research. In case of confusion, this may possibly lead to a claim for damages.

Trade name

The trade name is the name under which your business participates in economic transactions. The protection of the trade name is linked to the business and applies within the geographical area where the business is actually active.

The trade name can be identical to the company name, but this is not mandatory. The trade name does not need to be distinctive and can therefore be descriptive, as long as there is no confusion with existing names or brands.

As an entrepreneur, you automatically enjoy the protection of your trade name without the need for registration. The mere use of it – for example on letterhead, website, marketing or promotional material – is sufficient, provided you can prove the actual use. The protection as a trade name applies as long as you actually use the trade name.

In concrete terms, this means that if your business offers goods or services in a certain region, such as Antwerp, and you can prove the use of the trade name, the protection is limited to that region. A potential competitor who carries out similar activities under a similar name in, for example, Leuven, does not in principle violate any rules based on trade name law. The possibilities to act against this based on trade name law are limited, although there may possibly be an unfair market practice.

As an entrepreneur, it is therefore important to research existing trade names, company names or brands before choosing a trade name to avoid legal disputes.

What about a brand?

Finally, it is interesting for you as an entrepreneur to consider registering the chosen name or logo as a brand. A brand gives you an exclusive right to use a word, logo, slogan, pattern, color or a combination thereof within a certain geographical area and for certain goods and services.

In any case, you should remember the following as an entrepreneur:

• A brand is used to indicate the origin of goods and services and must be distinctive. It plays an essential role in the identification and recognition of your business.
• You only enjoy protection as a brand after registration. The brand protection applies within the geographical area for which the brand application is filed (e.g., Benelux or the entire European Union with a single registration) and for the designated classes of goods and services.
• A brand is valid for a period of 10 years and can be renewed, subject to payment of the trademark office fees.

As an entrepreneur, it is interesting to obtain a brand registration, as this allows you to act against those who use an identical or similar sign (including trade name). It therefore protects you against those who want to ride on the success of your brand.

Moreover, a brand registration contributes to the unhindered use of a name or logo and to a higher commercial value of your business.

PKF BOFIDI Legal is happy to assist you further

As a (starting) entrepreneur, it is important to choose the name of your business consciously and thoughtfully. Both the company name, trade name and brand have an impact on the identification and visibility of your business, as well as on the degree of legal protection. We always recommend conducting prior research when choosing the name (or logo).

A well-chosen name or logo is indispensable to the commercial success of your business.

Do you have questions about protection as a trade name, company name or brand? We would be happy to think along with you. Contact one of our experts.

This article was written by Jenny Cheung, specialized in intellectual property, ICT, data protection and privacy.