Business name registration vs trademark: does registering my business name protect it?
Written by For Founders Law, a Toronto firm licensed by the Law Society of Ontario. About us
Short answer
No. Registering a business name in Ontario records the name you operate under, and the law requires it if that name differs from your own or your company's legal name, but it doesn't give you exclusive rights. A registered trademark does: it gives the owner the exclusive right to use the mark across Canada for the goods and services listed in the registration. Many startups need a business name registration to comply and a trademark to protect the brand.
Founders often register a business name, or incorporate with a name, and assume the name is now theirs. In Canada, those filings are records. Exclusive rights in a brand come from trademark law.
How do they compare?
| Ontario business name registration | Corporate name | Registered trademark | |
|---|---|---|---|
| What it is | A record of a name you operate under | Your company’s legal name, in its articles | A federal right in a name, logo or other sign that identifies your goods or services |
| Which law | Business Names Act (Ontario) | Ontario or federal corporate statute | Trademarks Act (federal) |
| Where you file | Ontario Business Registry | Ontario Business Registry or Corporations Canada | Canadian Intellectual Property Office (CIPO) |
| Required? | Yes, if you operate under a name other than your own or your corporation’s legal name | Every corporation has one, a name or a number | No |
| Exclusive right to the name? | No | Not a trademark right | Yes, across Canada, for the registered goods and services |
| How long it lasts | Five years, renewable | As long as the corporation exists | 10 years, renewable every 10 years |
| If you skip it | Fines, and you may need the court’s permission to sue in Ontario | Not applicable | You rely on unregistered rights, which are harder to enforce |
When do I have to register a business name?
When you use a name other than your legal one. Section 2 of the Business Names Act says a corporation can’t carry on business or identify itself to the public under a name other than its corporate name unless it registers that name, and an individual can’t do so under a name other than their own. A registration lasts five years and can be renewed (ss. 4 and 5). If you don’t register, you can’t bring a court proceeding in Ontario in connection with that business without the court’s permission (s. 7), and you can be fined up to $2,000, or $25,000 for a corporation (s. 10). A numbered company that operates under a brand usually needs one. See numbered companies and business name registration.
Why doesn’t it protect the name?
Because that isn’t its purpose. The Act tells the public who is behind a name; it doesn’t decide who has rights in it. The Ontario Business Registry’s terms say the person filing takes responsibility for any risk of confusion or legal action from a name that is the same as or similar to an existing corporation, business name or trademark. Incorporating with a name doesn’t create trademark rights either; a NUANS report only checks a proposed name against existing names and marks.
What does a trademark add?
An exclusive right. Under section 19 of the Trademarks Act, a valid registration gives the owner the exclusive right to use the trademark throughout Canada for the goods and services in the registration. It lasts 10 years and can be renewed under section 46. CIPO’s trademarks guide notes that a trade name can be registered as a trademark only if it’s also used to identify goods or services.
What if I never register a trademark?
Using a name in business can still give you some common law rights, and section 7 of the Trademarks Act prohibits directing public attention to goods, services or a business in a way likely to cause confusion with someone else’s. But you have to prove those rights from the facts of your use, and CIPO’s guide warns that disputes over unregistered marks can be long and expensive.
When to choose which
- Business name registration: whenever you trade under a name that isn’t your legal name or your corporation’s legal name. It’s a compliance step, not protection.
- A named corporation: when you want the brand as your legal name on contracts and invoices. See can I incorporate before I have a business name.
- A registered trademark: once you’ve chosen a company or product name you plan to keep, filed in the company’s name. Search first. See how to register a trademark and our trademark class finder.
What to do next
We handle trademark searches and filings and incorporations, at fixed fees on our fees page; government fees are extra.
This guide is general information about Ontario and Canadian law, not legal advice for your situation. To check a name before you commit to it, book a free 15-minute consult.
Sources
- Business Names Act (Ontario), ss. 2, 4, 5, 7 and 10
- Trademarks Act, R.S.C. 1985, c. T-13, s. 19 (rights conferred by registration)
- Trademarks Act, s. 46 (registration period and renewal)
- Trademarks Act, s. 7 (unfair competition)
- CIPO: Trademarks guide
- CIPO: The difference between trade name, trademark and domain name
- Ontario Business Registry: all services (terms and conditions)