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ASP Advantage 1993
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The Association of Shareware Professionals Advantage CD-ROM 1993.iso
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f208.sbe
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@046 CHAP ZZ
┌─────────────────────────────────────────┐
│ SELECTING A TRADE NAME │
└─────────────────────────────────────────┘
Choosing the right name for your business can be a very
important ingredient in the success of your operation,
since it can affect the image you project, favorably or
adversely. For the typical small business, it will usually
be wise to pick a name that helps to describe the product
or service to be provided. Otherwise, picking a "cute" or
whimsical name may cost you many potential customers if
they fail to realize what you do when they see your signs,
advertising, etc. For example, if you call your restaurant
"The Comestible Emporium," a lot of very hungry (and semi-
literate) people will probably drive right by without real-
izing that you serve food.
On the other hand, it is advisable, from the standpoint of
protecting your business's name as a "trademark" or "ser-
vice mark" (such as Coca-Cola) under federal or state law,
to adopt a name that is also partly arbitrary or nondes-
criptive, in conjunction with a name that is descriptive
of the services or goods provided. An example would be
the "21 Club Restaurant." The reason for selecting a name
that is partly whimsical or arbitrary is that trademarks
or service marks that are merely descriptive of the goods
or services cannot be legally protected from use by others
unless you can prove that the name has taken on a secondary
meaning, which is very difficult to establish for a new,
small business.
After you have tentatively decided upon a name for your
business, you or your attorney should find out whether the
same name, or a confusingly similar name, has already been
pre-empted by someone else. This usually will involve
starting with the state's secretary of state, to find out
whether the name is already being used in the state by a
local corporation or out-of-state corporation that has qual-
ified to do business in the state. Next, you should in-
quire with the county clerk of each county where you will
do business, where state law requires filing or registra-
tion of trade names (fictitious business names), to see if
another business is already using the same or a confusingly
similar name in the county and has filed a fictitious or
assumed name statement. Or you may consult a firm that
specializes in checking on use of trade names or marks, or,
as a last resort, check the yellow pages (and white pages)
of the appropriate phone directories. If someone has al-
ready been using the name you want to use, you may have to
choose a different name to do business under.