Friday 16 September 2011

Being threatened with lawyers over business name but do they have a case?

I started a business last year and a search of the United States Trademark Office found no trademarks with my business name so I proceeded to incorporate in my state. I plan to expand into another state in March of next year and made the announcement of the expansion on Myspace.



Tonight, I got an email from someone in Arkansas saying %26quot;you better change the name or hear from out attorneys we have been incorporated since 1989 you will be reported to myspace%26quot; (note...I didn't change the spelling, it was sent like that, misspellings and all)



I searched the business database of the state where they are from and their business license was Revoked in 1997 and no trademark was ever filed. I plan to expand into their state as well so I'm thinking of just telling them I'll change it so they'll let their guard down and then go ahead and register the business in their state to protect myself. I also have a trademark application filed with the USPTO.



Can they even threaten legal action if they're not even a registered business in the state? I think that they don't think I know they're revoked or know how to check the status.
Being threatened with lawyers over business name but do they have a case?
The Patent %26amp; Trademark Office registration provides protections, but the lack of a registered trademark absolutely does not mean that there isn't someone out there entitled to common law protections of their trademark in use.



For legal advice on your rights and liabilities, you'll need to retain a corporate or intellectual property lawyer.
Being threatened with lawyers over business name but do they have a case?
You can probably also register your trademark in Arkansas, giving you the upper hand in any further dispute. You can also sue people who threaten you like that, using your local federal court. Note that trademark registration is not required in the USA and they may have rights under the Lanham Act.

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You did what we call %26quot;preliminary clearance%26quot; by checking USPTO. A %26quot;full clearance%26quot; would have included all state registrations, business names, domain names, trade journals, Google, etc. and would typically cost a few hundred dollars, with an opinion of clearance from counsel.

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You may be dealing with a prankster. Don't even communicate with these people for any reason. Do what you think is best for your company. Run it by your own attorney.