Oficina española de Patentes y Marcas

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What is the difference between a trademark and a trade name and what advantages does a trademark offer that a trade name does not?

A trademark is a distinctive sign used to distinguish products or services in the marketplace.

A trade name does not represent a product or service but it identifies a company in commercial trade and differentiates it from other companies in the same sector or other sectors.

The systems and procedures for trademark and trade name protection are very similar but there are several specific characteristics that apply to trade names:

• Each company can only register one trade name, given that it serves to identify the company.
• A trade name can only be transferred together with a company in its entirety and cannot therefore be transferred separately from the company to which it refers.

The trademark could therefore be referred to as the distinctive sign par excellence that can be granted internationally under established procedures, since there is such a thing as a community trademark yet there is no community trade name. As such, a trade name can only be granted protection on a country by country basis and under the national regulations that apply in each of said countries.

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