There is a difference between DBA and trademark. Although the two things seem similar – they both deal with the name of a business – the law treats them differently and it is important to separate the concept of a DBA from the concept of a trademark.
On more than one occasion, I have had a new client contact me with a request for help in registering their trademark. Since I do trademark work pretty much consistently, I generally say yes. However, after talking for a little bit I realize that the person with whom I am speaking is not actually looking for a trademark, rather they are seeking to set up a DBA or fictitious business name. Sometimes, the person is looking to do both: register a trademark and set up a DBA.
DBAs and trademarks serve as your business’ signature. But they do different things.
So What Is The Difference Between DBA and Trademark?
At its simplest, a DBA is the same thing as an AKA (“also known as”). It’s a legal alias that your business can adopt so that people can legally refer to you by that name. So instead of writing checks to you personally, they can write a check to your business name. DBAs are relatively easy to register (link to LA County register) and (in California, at least) they are secured through the county where your business is located. The process is fairly simple. If the name is not being used by someone else, you can set up a DBA for any legal entity. You file your forms, pay a modest fee and run an announcement in a newspaper for four weeks. Once done, you have your DBA.
Once you have a DBA, you can set up a bank account in that name and do business under that name.
A trademark is a little different. In general terms, a trademark is a brand. It associates a particular producer with a particular good or service on the market. Lawyers will say that a trademark is a “source identifier”. A trademark tends to be more public-facing than the DBA. It gets its power from being known by customers and potential customers.
Even though some trademark rights are secured simply through use, it is often prudent practice for business owners to register a federal trademark or at least a state trademark to ensure the maximum protection for their brand. Registration of a trademark and proper maintenance of trademark rights are key to developing a brand that customers recognize.
DBAs and Trademarks Are Not Exclusive
Many businesses will get both a DBA and register a trademark. DBA to do the administrative work, and a trademark to establish a brand. Getting a DBA set up represents a simpler process and getting a trademark registration involves a little more thought. The timing on either will vary depending upon what a business is doing and what resources are at that business’ disposal.
