What are the differences between common law trademarks and registered trademarks?

We all know trademarks are used by businesses to protect wording or imagery that pertains to their brand. There are different degrees of trademarks, however, that are obtained in different ways. If you’ve ever seen that little “TM” next to a logo, that likely indicates a common law trademark. A common law trademark is obtained simply through the use of the trademark to sell goods or services. You can also register a trademark through the United States Patent and Trademark Office (USPTO) and receive additional protections. Here are some key differences between common law and registered trademarks.

Common law trademarks only protect you locally

Common law only protects your trademark in the area of the country where it is used. If another business in a different state decides to use the same name as yours, for example, they would be free to do so. As more and more commerce takes place over the internet, this could affect your bottom line. A federally-registered trademark is protected nationwide. Further, this can aid you in expanding your trademark internationally and protect you from imported goods that might infringe on your trademark.

Federally registered trademarks are easier to enforce

Make no mistake; common law trademarks can hold up against federal registration. That said, registering a trademark has added protections. Having a trademark on record with the USPTO means that  you have proof of ownership. Registration provides established evidence in a dispute, whereas upholding a common law trademark leaves the burden of proof with the business. Also, owning a federally registered trademark allows you to go on the offensive. With ownership, you can file a lawsuit in federal court to protect the rights of your trademark.

Federal registration could prevent future disputes

Registration with the USPTO allows your business to show up in trademark databases. Other businesses looking to secure a trademark are much more likely to become aware of your trademark in advance. This can help keep other parties from infringing on your trademark and keep you from having to defend it. Not only could this save you a headache, but also the potential costs incurred in defending your trademark.