There are a lot of myths about trademarks that can leave brands dangerously exposed. Believing these misconceptions can put your business at risk for costly legal disputes, forced rebrands, and loss of credibility. For example, did you know that owning a domain name doesn’t actually protect your brand?
In this blog post, we’ll debunk the most common trademark myths and explain how to protect your brand effectively—before it’s too late.
Myth #1: Owning a Domain Name Protects Your Brand
The Myth:
“If I own the domain name, I own the trademark rights too.”
The Reality:
Owning a domain name gives you the right to use that web address—but it doesn’t grant you trademark rights. In fact, if someone else has trademarked the name, they can legally force you to surrender the domain.
Example:
The online fashion brand “Dress Haven” buys DressHaven.com but doesn’t register a trademark. A competitor trademarks the name “Dress Haven” and demands the domain be transferred—or else. The result? Legal battles, potential rebranding costs, and lost traffic.
Solution:
Trademark your brand name as soon as you buy the domain to prevent competitors from claiming it first. This move protects both your brand and your website traffic.
Myth #2: Small Businesses Don’t Need Trademarks
The Myth:
“My business is too small to worry about trademarks.”
The Reality:
Small businesses are actually the most at risk because they often lack the resources to fight legal battles if a larger competitor sends a cease-and-desist letter. Without a registered trademark, even a small business can be forced to rebrand—losing customers, credibility, and money.
Statistic to Know:
According to the United States Patent and Trademark Office (USPTO), over 85% of trademark disputes involve small businesses, not large corporations.
Example:
A small bakery named “Sunny Bakes” faces a trademark dispute from a larger bakery chain. Unable to afford the legal battle, they’re forced to rebrand at a cost of $20,000.
Solution:
Register your trademark early to secure your brand’s name, logo, and slogan—no matter how small your business is today.
Myth #3: Trademarks Are Only for Logos and Names
The Myth:
“Trademarks only protect logos and business names.”
The Reality:
Trademarks can protect a lot more than just names and logos. They can also cover slogans, product names, packaging designs, and even unique colors and sounds associated with your brand.
Examples of Unusual Trademarks:
- Tiffany & Co.: Trademarked its signature blue box.
- MGM: Trademarked the lion’s roar sound.
- UPS: Trademarked its brown delivery trucks and uniforms.
Pro Tip:
If your brand has a distinctive color, sound, or slogan, consider registering these elements as trademarks to fully protect your brand identity.
Myth #4: Trademarks Last Forever
The Myth:
“Once I register a trademark, I own it forever.”
The Reality:
Trademarks don’t last forever—they must be renewed every 10 years in the U.S. To maintain a trademark, you also need to prove that you’re actively using it in commerce. If you fail to renew or prove usage, your trademark can be canceled.
Example:
A clothing brand named “Urban Threads” registers a trademark but doesn’t sell any products for three years. The USPTO cancels the trademark for non-use, leaving the brand exposed to competitors.
Solution:
Set reminders to renew your trademark every 10 years and keep records proving your continuous use in commerce.
Myth #5: Trademarks Are Too Expensive
The Myth:
“Trademarks cost too much for a small business.”
The Reality:
The cost of registering a trademark—typically $225 to $400 per class—is minimal compared to the potential costs of legal disputes, rebranding, and lost sales if your brand is copied.
The Cost of Not Trademarking:
- Legal Fees: $120,000 to $750,000 for trademark infringement lawsuits.
- Rebranding: $10,000 to $50,000 for a name and logo change.
- Lost Sales: Up to 10% of revenue due to copycats, according to the OECD.
ROI Analysis:
Registering a trademark offers a return on investment of over 10,000% if it prevents even one legal dispute.
Myth #6: I Can Use Any Name That Isn’t Trademarked
The Myth:
“If a name isn’t trademarked, I can use it.”
The Reality:
Just because a name isn’t trademarked doesn’t mean it’s available. It might still be protected by common law trademark rights if someone else has been using it in commerce—even without registration.
Example:
A startup registers “Bright Minds Tutoring” as a trademark but soon receives a cease-and-desist letter from a local tutoring company that’s been using the name for years. Despite the lack of a federal trademark, the local company’s common law rights hold up in court.
Solution:
Conduct a comprehensive trademark search, including common law databases and local business listings, before finalizing your brand name.
Myth #7: Trademarks and Copyrights Are the Same
The Myth:
“Trademarks and copyrights are the same thing.”
The Reality:
Trademarks protect brand names, logos, and slogans, while copyrights protect original works of authorship like books, music, and art. For full brand protection, you might need both.
Example:
A restaurant trademarks its name and logo but also copyrights its unique menu designs and marketing materials. This dual protection prevents both brand and content theft.
Pro Tip:
Consult an intellectual property attorney to determine if you need a trademark, copyright, or both to protect your brand fully.
Common Trademark Mistakes to Avoid
- Skipping the Trademark Search:
Filing without a comprehensive search can lead to disputes if a similar name already exists. - Delaying Registration:
The longer you wait, the higher the risk of a competitor filing first. - Ignoring International Protection:
If you plan to sell internationally, file for protection in each target market through the Madrid Protocol.
Conclusion: Don’t Let Myths Leave Your Brand Exposed
Believing trademark myths can leave your brand exposed to legal battles, forced rebrands, and lost sales. By understanding the truth about trademarks—and acting early—you can protect your brand’s name, logo, and reputation effectively.
If you’re ready to secure your brand’s future, consult a trademark attorney today. The investment in a trademark is small compared to the potential risks of leaving your brand unprotected.