By Van Trinh
One of the most common and costly mistakes entrepreneurs make is believing that simply registering a business name and using it in daily operations automatically gives them exclusive trademark rights. The truth is, a business name, a trade name, and a trademark are very different concepts, each carrying its own scope of rights and protection. Overlooking these differences can expose your venture to disputes, forced rebranding, and lasting damage to your hard-earned reputation even if you were the first to use the name.
Key Takeaways
- Business Name ≠ Trademark – Registering a business name alone does not grant exclusive rights; trademarks provide nationwide legal protection.
- Trade Names Have Limited Protection – While protected under IP law when used in commerce, trade names require strong evidence of prior use to defend against disputes.
- Order of Registration Matters – Conflicts can force rebranding if a business name or trade name overlaps with a pre-existing trademark
- Proactive Trademark Registration is Essential – Searching national IP databases and registering early under the first-to-file principle secures your brand foundation.
- Vietnam’s Decree 168/2025/ND-CP Shifts Responsibility to Founders – Entrepreneurs must ensure names are clear of infringement or face mandatory changes and full liability.
Secure Your Brand Name
Business Name, Trade Name, Trademark – What’s the Difference?
Business Name – The official name of your company as registered with the business registration authority. It appears on your business registration certificate.
Trade Name – The commercial name by which your business is known in the marketplace. Registration is not required, but it is protected under IP laws if it is established and used in commerce.
Trademark – A sign (word, logo, design, or combination) registered with the National Office of Intellectual Property to distinguish your goods or services from those of others. Once registered, the trademark owner has exclusive nationwide rights for the registered goods/services.
While these names can sometimes be identical or closely related, they are governed by different laws and follow different mechanisms for establishing rights.
How Are Rights Established?
Business Name Rights – Created upon successful business registration, with protection nationwide against other companies registering the same or confusingly similar name.
Trade Name Rights – Arise through lawful, continuous use in commerce. Since there is no registration procedure, disputes require proof of first use, duration of use, market reach, and reputation.
Trademark Rights – Granted through successful registration on a first-to-file basis. Once approved, the trademark owner enjoys exclusive nationwide rights for the registered goods/services.
The Conflict Zone
Conflicts arise when these names overlap. Common scenarios include:
A business name registered after a trademark may have to be changed if it causes consumer confusion.
A trademark application may be refused if it is identical or confusingly similar to an existing trade name in the same sector.
Trade names can be difficult to defend without strong evidence of prior use.
This creates a delicate balance:
Registering a business name first without checking trademarks risks costly rebranding.
Building a brand under a trade name without trademark registration risks potentially losing it if you cannot prove prior rights.
Why the Order Matters?
Vietnam’s latest regulation — Decree 168/2025/ND-CP on business registration took effect on July 1, 2025, and directly addresses this issue. It requires founders to check trademark databases before registering a business name, helping prevent avoidable conflicts and costly name changes later. Key points of the Decree:
Pre-check required – Founders must search the national industrial property database for existing trademarks before registering a business name.
Liability for infringement – Businesses are responsible if their names infringe the IP rights of others.
Mandatory name change – If a registered business name is later found to infringe industrial property rights, it must be changed.
The same principle applies to trade names. While IP law prohibits registering a trademark identical or confusingly similar to an earlier trade name, the absence of a registration system means your trade name rights depend entirely on the quality of your evidence. Without solid proof of prior use, you could lose the name, and all the goodwill you’ve built.
Best Practices for Entrepreneurs
Having a business name alone does not guarantee brand safety. Relying solely on a trade name leaves you vulnerable to conflicts with earlier trademarks and burdens you with the challenge of proving your rights when disputes arise. The strongest and clearest protection comes from trademark registration — and it should always be a priority.
Build a Legally Secure Brand Foundation with These Steps:
Search trademark databases first – Identify any existing marks that could block your desired name.
Secure your trademark – File a trademark application with the intended list of goods/services to secure your filing date (remember, first come, first served), and consider including products or services you plan to offer in the near future.
Register your business name – Ensure it does not conflict with earlier trademarks or registered business names.
Use your trade name consistently – Keep records of use to strengthen your position in disputes.
By taking these proactive steps, you protect your brand, avoid costly rebranding, and safeguard the goodwill you have worked hard to create.
How KASS Can Help?
At KASS, we partner with entrepreneurs to secure and grow their brands from day one: Conducting in-depth trademark searches
Filing trademark applications in Vietnam and internationally
Advising on compliant business name registration
Guiding on evidence collection for trade name rights
Assisting in disputes involving business names, trade names, and trademarks
Secure your name in all its forms before you build your brand.
For further enquiries or strategic advice, contact us at kass@kass.asia and speak with our IP experts.