There’s a persistent myth in the business world that simply registering your company name as an LLC or corporation automatically protects your intellectual property rights. Let’s clear this up once and for all: forming a business entity, while important for many reasons, does not automatically grant you any intellectual property rights in the United States.

The Business Registration Reality

When you register your business with the state, you’re simply reserving that name for corporate identity purposes within that state. This registration:

• Doesn’t prevent others from using your name in other states
• Doesn’t grant trademark protection
• Doesn’t protect your inventions, designs, or creative works
• Doesn’t give you automatic rights to a domain name
• Doesn’t give you rights to use that name if another has prior rights

What Actually Protects Your IP?

To secure your intellectual property rights, you need specific IP protection:

• Trademarks: Protect your brand names, logos, and slogans through federal registration with the USPTO.
• Patents: Safeguard your inventions and designs through patent applications.
• Copyrights: Protect your creative works through copyright registration.
• Trade Secrets: Maintain through confidentiality agreements and security measures.

Common Confusion Points

Many business owners mistakenly believe that their state-registered business name automatically becomes their trademark or that by registering the name it means that it is clear for use. However, having “Smith Consulting, LLC” registered in New York doesn’t prevent someone from using “Smith Consulting” as a trademark in any state – even New York.

Taking the Right Steps

To properly protect your intellectual property:

1. Conduct proper searches before settling on names or brands.
2. File for federal trademark protection for your business name if you plan to operate across state lines.
3. Register copyrights for original works.
4. File patent applications for new inventions.
5. Implement trade secret protection measures.

Don’t let misconceptions about business registration leave your intellectual property vulnerable. While forming an LLC or corporation is an important step in building your business, it’s just one piece of the puzzle. For comprehensive IP protection, you need a strategic approach that includes proper IP registrations and protections.

Need help developing your IP protection strategy? Call us today at (888) 666-0062 or click here to schedule your initial Discovery and Strategy Session online.

DISCLAIMER: The information contained in this article is for informational purposes only and is not legal advice or a substitute for obtaining legal advice from an attorney.