Trademarks, Service Marks and Trade Names

A trademark is a word, symbol, fanciful name, design, logo, slogan or some combination of these used by a company to identify its products. A service mark is similar to a trademark but identifies and distinguishes services provided by the owner, rather than a product. A trade name is the name used to designate a company, rather than its products or services. For example, the fictitious name "GWARFLE" could be a trade name used to designate the Gwarfle Company. The company makes gold plated waffle irons so when applied to their product, "GWARFLE" is trademark. Finally, if the company provides services to owners of the product, including perhaps extended maintenance agreements, cooking lessons, and so forth, then when applied to these services, "GWARFLE" is a service mark.

Marks serve three major purposes.

The identify and distinguish the products, goods, or services of the owner from those of the competitors.

They provide a guarantee to the customer of a consistent standard of quality and excellence for the products or services.

They become valuable selling tools as a result to the good reputation enjoyed by the products or services.

A trademark is distinctive identifying "label" intended to distinguish a companies products from those of other companies. As such, a trademark comes to be closely identified with a particular company's products and, if the reputation for those products is good, the trademark becomes a highly visible marketing tool and is a valuable asset to the company. Many companies fight very hard to maintain the value of their trademarks by scanning new trademark registrations and applications for registration in search of any that may be deemed similar to the company's existing trademarks. The goal is to prevent the dilution of the companies existing mark and to make certain that the field does not become crowded with trademarks that are confusingly similar. A valuable trademark could suffer from lack of a clear identity in such a crowded field of marks. This process of scanning trademark applications can be accomplished, at least in part, by using online trademark databases.

It is important for the owner of a mark to be vigilant in defending the mark against improper usage. If a mark is used improperly over a period of time, or if it is not defended properly against assaults by other marks that are too similar, the owner may wind up forfeiting rights to the original marks. This was the case with some commonly recognized names, now generic that were at one time registered trademarks. Common examples include names such as aspirin, cellophane and escalator.

Until recently, trademark and service mark rights were conferred strictly by use. An application to register a trademark in the U.S. could only be made if the mark had actually been used for a product or service offered for sale in interstate commerce. Applicants could not apply to register a trademark for a product or service that was still but a twinkling in the eye of the applicant. Recent changes in the U.S. trademark law now allow for such applications. Now anyone can file an application for trademark registration with the aim of "reserving" that trademark for future licensing position. These are know as intent-to-use applications.

Although there is no requirement to do so, registration does provide certain procedural advantages and legal protections to trademark owners in the United States.

Contributed by Martin (Marty) Zeller
N.A.S.A. Far West Regional Technology Transfer Center
3716 South Hope Street, RAN 200
Los Angeles, CA 90007
(213) 743-6132