When it comes to protecting your business’s brand, registering a trademark is one of the most crucial steps. However, deciding whether to pursue a federal or state trademark can significantly impact your business strategy. Both options have their pros and cons, and the best choice depends on your specific needs and goals.

 

The Risks of Not Registering Federally

Consider the cautionary tale of Gene Hoots, who operated a successful restaurant called Burger King in Mattoon, Illinois. While his business thrived locally, a Florida-based company also using the name “Burger King” federally registered the trademark. This led to a contentious legal battle, culminating in the landmark decision of Burger King of Florida, Inc. v. Hoots, 403 F.2d 904 (7th Cir. 1968).

The court’s decision restricted Hoots’s Burger King to a 20-mile radius around Mattoon, while the Florida-based chain expanded nationwide. Today, the fast-food giant operates hundreds of locations, while Hoots’s restaurant remains a single local operation. This case underscores the importance of federal trademark registration for businesses aiming to grow beyond a localized area.

Failing to register a trademark federally can:

  1. Limit your ability to expand your business.
  2. Increase the risk of costly litigation.
  3. Restrict your rights to enforce your trademark in other regions.
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When State Trademarks Might Be a Better Option

Despite the advantages of federal registration, there are instances where a state trademark might be more suitable for your needs. Key reasons to consider state registration include:

  1. Lower Cost: State trademark registration is often more affordable than federal registration, making it an attractive option for small businesses or startups with limited budgets.
  2. Faster Process: State registrations typically have shorter processing times, allowing you to secure your rights more quickly.
  3. State-Specific Remedies: Some states offer unique legal remedies, including the possibility of recovering attorneys’ fees in infringement cases, which may not always be available under federal law.
  4. State-Specific Registrability: Some states allow registration of marks for goods or services that federal law does not currently protect, such as those related to cannabis.

State trademarks are especially beneficial if your business operates exclusively within a single state or if your expansion plans are localized. However, it’s important to note that state trademarks do not offer the nationwide protection that federal registration provides.

What Should You Do?

The decision to register a trademark at the state or federal level depends on your business’s needs and long-term goals. For local businesses with no immediate plans for regional or national expansion, state trademarks might be a practical and cost-effective solution. On the other hand, businesses with aspirations to grow beyond state borders should strongly consider federal registration.

Why Work with an Attorney?

Whether you choose to register your trademark at the state or federal level, consulting with an experienced attorney is crucial. At Twisdale Law, PC, with offices in North Carolina, South Carolina, and Tennessee, we have the expertise to guide you through the trademark registration process. We can help you:

  • Determine whether a state or federal trademark aligns better with your business strategy.
  • Conduct comprehensive trademark searches to minimize the risk of conflicts.
  • File and navigate the registration process efficiently.

By partnering with us, you can avoid costly mistakes and ensure that your trademark protects your business effectively.

Who Should Help You Register a Trademark?

While U.S. citizens can apply for trademarks without legal assistance, it’s generally not recommended. Navigating the trademark registration process can be as complex as representing yourself in court. Without expertise, applicants often make errors that require costly fixes, far exceeding the cost of hiring an attorney from the outset.

At Twisdale Law, PC, we have experience in assisting clients with trademark registration. From conducting thorough trademark searches to preparing and filing your application, our attorneys are here to ensure a smooth and successful process. By investing in professional legal assistance, you’re investing in the long-term security of your brand and business.

For non-U.S. citizens, the USPTO requires representation by a licensed U.S. attorney. Our firm is ready to guide international clients through this process with expertise and efficiency.

Take the Next Step

Protecting your brand is essential to your business’s success. Contact Twisdale Law, PC today to discuss your trademark needs. We’ll work with you to determine the best strategy for safeguarding your brand and ensuring your business’s growth.

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