Trademark and company name: which protection

“I’ve registered the company, so the name is protected.” It’s one of the most common beliefs among people starting a business in Switzerland, and also one of the riskiest. Company name and trademark are two distinct legal instruments, with different functions and protections. Confusing them can mean investing years in a commercial name that a competitor is free to use. Let’s look at the difference in practical terms.

Two different things

The company name (or business name) is the name under which the business is entered in the commercial register: it is the legal name of the entity. “Rossi Consulting GmbH” is a company name.

The trademark is the sign that distinguishes a company’s products or services on the market: a name, a logo, a graphic combination. It is what the customer associates with a particular offering.

The difference is conceptual, but it has very concrete effects: they identify different objects and are protected by different rules.

What the company name really protects

Entering the company name in the commercial register provides real but limited protection.

• For corporations (GmbH, AG), the registered company name enjoys protection throughout Switzerland, and cannot be identical to one already registered.
• The protection concerns, however, the name of the business as such, not the use of that name as a distinctive sign on products and services.

In other words: registering “Alpina GmbH” in the register prevents others from registering a company with an identical name, but it does not automatically guarantee the exclusive right to use “Alpina” as a trademark on products, signage, packaging and communication. That right is granted by trademark registration.

What the trademark protects

Trademark protection arises with registration at the Swiss Federal Institute of Intellectual Property (IPI). It is the trademark that grants the exclusive right to use a sign for the products and services for which it is registered, and to take action against anyone who uses an identical or similar sign creating a risk of confusion.

A trademark is registered by classes of products and services: protection covers the indicated classes, not everything under the sun. A business operating in food service registers in the relevant classes; expanding the activity may require extending the coverage. Its term runs for several years and is renewable indefinitely, unlike other intellectual property rights that expire.

Why the company alone is not enough

Here is the typical scenario that creates problems. An entrepreneur incorporates “Verde GmbH”, invests in the “VERDE” brand on signage, website and products, but does not register it as a trademark. A competitor registers “VERDE” as a trademark in the same class. Result: the person who built the sign’s reputation may find themselves in the weaker position, because the exclusive right to the commercial sign belongs to whoever holds the trademark registration.

The company name, on its own, does not cover this risk. It protects the legal name of the business, not the investment made in the brand.

The check before you start

Before choosing a name, it is advisable to run two distinct checks, because they answer different questions:

• a commercial register search, to verify that the company name is available;
• a trademark search of already registered marks, to verify that the sign you want to use does not conflict with earlier trademarks in the relevant classes.

Neglecting the second check is a common mistake: people verify that the company can be registered and take for granted that the trademark is also free. It is not the same thing.

The recommended strategy

For those aiming to build a brand, the solid approach combines the two instruments:

• choose an available company name that complies with register rules;
• register as a trademark the distinctive sign you will use on the market, in the relevant classes;
• consider extending protection to foreign markets if the activity has an international vocation;
• monitor over time for any conflicting registrations.

The cost of a trademark registration is modest compared to the value that a recognizable brand accumulates over the years. It is a defensive investment, not an incidental expense.

Our approach

At SIH ONE we support entrepreneurs and companies both in choosing and registering the company name and in the trademark protection strategy. We help verify name availability on both fronts, identify the correct classes, and set up protection consistent with the markets in which the business operates or intends to operate.

Do you want to truly protect the name of your business? Let’s talk with our legal desk.