Yes, more than one business can have the same name, provided specific circumstances related to geographic market presence or industry classification are met. Name overlap occurs because there is a distinction between registering a legal entity name and securing intellectual property rights for a brand. A name’s exclusivity is determined by its capacity to function as a unique identifier for consumers, requiring navigation of both state incorporation rules and national trademark standards.
Understanding the Types of Business Names
The ability for two businesses to share an identical name often stems from the difference between a legal entity name and an operating name. The legal entity name is the official designation registered with a state’s filing authority, such as the Secretary of State, when forming an LLC or corporation. This name is used for formal documentation and tax filings. State offices typically require this name to be unique only among other legal entities registered within that specific jurisdiction.
An operating name, often called a DBA (Doing Business As) or Fictitious Name, allows a business to operate under an alias separate from its formal legal name. A single legal entity can register multiple DBAs to brand different product lines without forming new legal structures. Registering a DBA is merely an administrative step and does not create a separate legal entity or afford independent legal protection for the name itself. This lack of protection means two different legal entities could potentially use the same DBA, contributing to name duplication.
The Role of Geographic Boundaries in Naming
The geographic limitation of state-level registration is a primary reason why duplicate business names can legally exist. When registering a legal entity name, the name is checked for uniqueness only against other registered entities within that specific state’s database. State registries operate independently and do not coordinate to ensure national exclusivity. This jurisdictional boundary means that the same legal entity name can exist in multiple states, such as in Oregon and Florida.
This state-by-state protection grants administrative exclusivity within that border, but it is far narrower than true brand protection. Common law rights, which are non-registered rights established through the use of a name in commerce, are geographically limited to the specific area where the business has built a reputation. For instance, a local business may only have common law rights to its name in its immediate town. This reliance on state and local boundaries permits a multitude of identical business names to legally coexist across the United States.
Trademark Law: The True Barrier to Identical Names
While state registration governs the administrative legality of a name, federal trademark law determines the right to use a name as a brand identifier in the marketplace. A trademark is a word, phrase, symbol, or design that identifies and distinguishes the source of goods or services. Registering a name with the United States Patent and Trademark Office (USPTO) provides nationwide notice of ownership and is the only mechanism that grants national exclusivity. This federal protection prevents widespread name overlap.
Registering a legal entity name with a state does not automatically grant federal trademark protection. State registration and federal trademark registration are separate legal processes with distinct purposes. Trademark law is concerned with preventing consumer confusion, which differs from the state’s concern for distinguishing legal entities for record-keeping. When a dispute arises over a business name used as a brand, federal trademark law generally supersedes state entity registration rules, making it the ultimate arbiter of name exclusivity in commerce.
The Principle of Likelihood of Confusion
The core legal standard used to determine whether two names can coexist is the “likelihood of confusion” test. This test assesses whether an average consumer encountering both businesses would mistakenly believe they are affiliated, sponsored, or endorsed by one another. This standard permits identical names to exist when the businesses operate in completely unrelated fields. The analysis requires a holistic review of multiple factors.
Two of the most heavily weighted factors are the similarity of the marks themselves and the relatedness of the goods or services. Similarity of the marks examines their look, sound, and overall commercial impression. Relatedness considers whether the products or industries are the same or closely related, such as two different companies both selling sporting goods. If the marks are identical but the industries are entirely separate—for example, “Nova Hardware” and “Nova Bakery”—confusion is unlikely, and the names can coexist.
A third consideration is the similarity of the marketing channels used by the two businesses. If both companies sell their products through the same online platforms or retail stores, the risk of consumer confusion increases. Courts also examine the level of care consumers use when purchasing the goods; consumers exercise less caution when buying inexpensive, everyday items. If the combination of these factors suggests that consumers could be confused about the source of the goods or services, the junior user’s right to the name is typically denied, regardless of their state registration status.
Practical Steps to Avoid Name Conflict
The most effective way to secure a chosen business name and avoid future conflict is to conduct a comprehensive clearance process that extends beyond a simple state search. This process involves several key steps to ensure both administrative and brand availability.
Clearance Process Steps
Search the state’s Secretary of State or corporate registry to ensure the name is available for legal entity registration in the home state.
Search the USPTO’s Trademark Electronic Search System (TESS) database for any federally registered marks.
Check for name availability on major domain name registrars and across prominent social media platforms.
Apply for federal trademark registration with the USPTO.
A single federal trademark holder has rights that could extend into any geographic area, making the USPTO search prudent even for local businesses. While federal registration requires more time and resources than state registration, securing a federal trademark offers the most robust, nationwide protection against future name disputes.