Difference between a brand and a trade name

11 September, 2024
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Industrial Property
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Pablo del Estal


In a globalized world like the one we currently live in, it is increasingly common for companies to want to protect their industrial property rights (brands, patents, trade names, etc.). However, it is common to confuse a brand with a trade name. Therefore, it is important to explain both concepts and identify their differences.

What are a brand and a trade name?

A brand and a trade name are distinctive signs protected by rights granted by each country that give their owner the exclusive right to use them in commercial activities and also provide the right to prevent third parties from using them. The protection will depend on the territorial scope in which the brand or trade name is registered (only in Spain, in the European Union, or in any other country worldwide).

But, how do a brand and a trade name differ?

A brand is a sign that allows companies to differentiate their products or services from those of their competitors. It is important to note that a brand is the most distinguishing sign.

On the other hand, a trade name is a distinctive sign that serves as an identifier to distinguish a company in the market. The trade name differentiates it from other companies carrying out similar or identical activities. It is worth noting that the trade name does not have to be the same as the company’s legal name.

In other words, the brand identifies a specific product or service of a company, while the trade name refers to the name of the company itself. Sometimes, both concepts may have the same name, as is the case with the company Nike. On other occasions, the trade name may be better known than the brand, as happens with Mercadona (trade name) versus its brand “Hacendado”. Conversely, it may happen that the brand is more well-known than the trade name, such as with 7up or Pepsi (brands) and PepsiCo, Inc. (trade name).

In Spain, brands and/or trade names are registered with the Spanish Patent and Brand Office. Although the registration process to protect them is quite similar, there are the following specific differences regarding the registration of a trade name:

–> A trade name can only be registered linked to a single company, while several brands can be registered related to the same company.

–> Unlike a brand, a trade name can only be transferred along with the entire company, so it cannot be assigned or licensed independently of the company’s transfer.

What are the requirements for registering a brand and/or trade name?

The distinctive sign you want to register must meet the following two requirements:

–> Legality: It must be lawful, meaning that it does not violate any of the prohibitions established by the Spanish Trademark Law.

–> Availability: It must be available, meaning that it does not conflict with pre-existing rights such as registered brands, trade names, etc.

Is it important to register a brand and/or trade name?

Although it is not mandatory to register a brand and/or trade name, doing so is highly recommended for the following reasons:

–> It gives you an exclusive right: Registering your brand and/or trade name protects your brand identity and your industrial property rights, preventing other companies from marketing identical or similar products. In other words, by registering your brand and/or trade name, you obtain an exclusive right over it.

–> Competitive differentiation: It allows you to stand out and differentiate yourself from the competition, which is especially valuable in saturated sectors where similar brands and/or trade names abound. It is common that when faced with two identical products, the brand and/or trade name associated with the product, service, or company is the factor influencing the consumer’s final decision.

–> Increase in your brand’s value: A registered brand and/or trade name can increase the value of your company, as it makes it more attractive to potential buyers.

What is the duration of protection for a brand and/or trade name?

Protection is granted for a period of ten years from the date of application. After those ten years, it is necessary to renew the brand and/or trade name, and this renewal can be done indefinitely. It is essential to keep your address updated for notification purposes with the corresponding Intellectual Property Office, as this is how renewal notices will be received.

What are the costs of registering a trademark and a trade name?

Registering a brand and a trade name with the Spanish Patent and Brand Office involves costs that vary depending on the number of classes of products or services to be protected and the type of application. In this regard, the following distinction is made:

Non-electronic application (paper-based): €150.45 for the 1st class and €97.48 for the 2nd and subsequent classes.

Electronic application: €127.88 for the 1st class and €82.84 for the 2nd and subsequent classes.

In short, registering a brand and/or trade name is essential for any company seeking to stand out and secure its position in the market. Although a brand and a trade name are different distinctive signs, both are key to differentiating products, services, or companies, granting an exclusive right of use that prevents their exploitation by third parties.

At MES Advocats, we offer comprehensive advice and support in the process of registering brand s and/or trade names with the Spanish Patent and Brand Office (OEPM) and/or the European Union Intellectual Property Office (EUIPO). Our experience allows us to provide a fast, tailored service with excellent results. If you need more information or are interested in obtaining a quote, do not hesitate to contact us.

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Industrial property rightsBusinessBrandTrade name

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