Article by Mr Mark Ingber and Mr David Beslow
One of the most common duties performed by an attorney for a client is a Corporate name clearance. What attorneys do not know, however, is that a corporate name clearance alone is not enough to protect clients from potentially significant liability. Acceptance by the New Jersey Secretary of State of your client’s business name as a corporate name will not give that corporation the right to use their corporate name in commerce, when faced with the superior trademark rights of prior users of the name. Federal trademark rights are not superseded by the acceptance of registration by the Secretary of State1, which does not provide clearance for trademark or service marks, nor does it assess the risk factor associated with such use. Only an independent trademark search will look for the rights of prior trademark users, and may provide an early indication of whether your client’s proposed corporate name will create a conflict. Proceeding
