Rally Round the Trade Name

Rally Round the Trade Name

Zul-Jalaal Abdullah

Strayer University Shelby Oaks Campus

Law, Ethics, and Corporate Governance-Leg 500

November 19 , 2011

Professor Lateefah Muhammad JD

The point that Gabby's surname is Rally does not provide her the right to use it any way she wants. There remain no laws that state that she has any rights to a trade name purely based on the fact that it's her last name. If the occupational name Rally is already legally recorded as a trade name under common law or as logo under federal law, at that moment legally she cannot use it as her business name as well. In order for Gabby towards gain rights to a business name she must apply for a trade name and/or trademark for her business. Until that is approved she does not own any rights to the name Rally.

The law implies that the business that owns exclusive rights to a specific trade name must have been the first in that particular geographical area, for a specific business purpose . "A trade name belongs to the first business to use it, and the identification and reputation gives it value and the right to protect the trade name against its use by others" (Trade Name, 2010, para. 8). If Gabby decides to use her last name as a business name and it's already a registered trade name or trademark, then she may be interfering with the reputation and advertisement of another business.

Gabby also does not own the right to use her surname anyway she wishes because not every business name is eligible to become a trade name or trademark and if this is the case with the business name Rally, then it will not be approved. In order for Trade names and Trademarks to be approved they cannot be common names. Business names must be distinctive and unique and cannot be confusingly similar to any other trade name or trademark (Olson, 2010 para. 4).

The surname Rally may or may not qualify for a trade name or trademark, so before Gabby decides that her surname entitles her to be able to use any way she wishes, it's in her best interest to register her business name as a trade name and/or trademark. It does matter that Rally is associated with pizza because trade names apply to a business purpose.

When businesses in different industries use similar names such as; Rally Motors and Rally Pizza, it may or may not cause conflict. Herman and Gabby's businesses are in two completely different industries. "Not every trade name that resembles an existing one will give rise to liability for infringement. The law will not forbid two unrelated businesses from using the same trade name so long as their coexistence creates no substantial risk of confusion among the public" (Trade Name, 2010 para. 4).

It does matter that Rally is associated with pizza because trade names apply to a business purpose. When businesses in different industries use similar names such as; Rally Motors and Rally Pizza, it may or may not cause conflict. Herman and Gabby's businesses are in two completely different industries. Not every trade name that resembles an existing one will give rise to liability for infringement. The law will not forbid two unrelated businesses from using the same trade name so long as their coexistence creates no substantial risk of confusion among the public.

If Herman can prove that consumers are confusing the two products then Gabby may not be able to use the same trade name. The fact that consumers are calling Herman's car dealership to order pizza says that there may be some type of confusion. However, Gabby may also be able to prove that the name "Rally" is a generic word for a business. If Herman can prove that consumers are confusing the two products then Gabby may not be able to use the same trade name. The fact that consumers are calling Herman's car dealership to order pizza says that there may be some type of confusion. However, Gabby may also be able to prove that the name Rally is a generic word for a business. Maybe some type of confusion. However, Gabby may also be able to prove that the name Rally is a generic word for a business. The law implies that "Generic words that are widely used to describe any number of businesses in the same field may not be appropriated