Trademark
A trademark is a legally protected word, phrase, symbol, design, or slogan that identifies and distinguishes the source of goods or services in commerce. The protected mark is typically a brand name, logo, or tagline. Rights are established either through actual use in commerce (common-law trademark rights, limited to the geography of actual use) or through formal registration with the US Patent and Trademark Office (USPTO, federal rights with nationwide protection). Trademarks are one of the four major categories of intellectual property alongside copyrights, patents, and trade secrets. It is the IP category most consistently overlooked at startup formation and most consistently catches up to companies during fundraising due diligence or expansion into new markets.
The rights structure: common-law trademark rights are established automatically when a mark is used in commerce, but rights are limited to the geographic area of actual use and are difficult to enforce; the ™ symbol can be used to claim common-law rights. Federal trademark registration via the USPTO provides nationwide rights, the ability to use the ® symbol, presumption of validity in litigation, eligibility to recover statutory damages and attorneys' fees, and the ability to record the mark with US Customs to block infringing imports. The federal application process: file an application via TEAS (Trademark Electronic Application System) at uspto.gov, pay filing fees ($250 to $750 per class of goods/services depending on the form chosen), the USPTO reviews for procedural and substantive issues (typically 6 to 12 months), the mark is published for opposition (30-day window where others can object), and if no oppositions or oppositions are resolved, the mark registers (typical timeline: 10 to 14 months from filing to registration). Costs: USPTO filing fees plus legal fees if using an attorney; total for a typical single-class trademark application runs $1,500 to $3,500 including attorney work. The 2020s reality: trademark squatting has become a real risk in markets like China; founders planning international expansion often file trademarks in target countries proactively before launch.
Ryan's Take
Trademark is the cheapest and most-overlooked piece of startup IP hygiene. The federal registration costs $1,500 to $3,500 total and provides nationwide brand protection for 10-year renewable terms; the cost of not having it is the existential risk that another company files first and forces you to rebrand mid-growth. Do a trademark search before naming the company (use TESS at uspto.gov, or a $300 attorney clearance search), file the federal trademark application as soon as the brand is committed, and renew on schedule. This is one of the cheapest legal investments in the entire startup playbook. The founders who skip it usually regret it when a competitor files first or sends a cease-and- desist letter.
What founders get wrong: Naming the company without doing a trademark search, then discovering after launch that the name conflicts with an existing federal trademark. The cleanup cost (rebrand, legal fees, lost brand equity, refiled domain registrations and marketing assets) can easily exceed $50K to $250K. A $300 attorney clearance search before naming prevents most of these.
Related: Copyright · Patent · Incorporation
FAQ
What is a trademark?
A legally protected word, phrase, symbol, design, slogan, or combination thereof that identifies and distinguishes the source of goods or services in commerce. Rights are established either through actual use in commerce (common-law trademark) or through formal registration with the US Patent and Trademark Office (USPTO).
What's the difference between TM and ®?
TM (™) indicates a common-law trademark claim, usable by anyone claiming trademark rights through actual use, without requiring federal registration. ® indicates a federally registered trademark, usable only after the USPTO has formally registered the mark. Federal registration provides nationwide protection, statutory damages eligibility, and other significant advantages over common-law rights.
How much does a trademark cost?
USPTO filing fees range from $250 to $750 per class of goods/services. Total cost for a typical single-class federal trademark application, including attorney work, runs $1,500 to $3,500. Renewals required every 10 years. Trademark clearance searches before naming cost roughly $300 with an attorney and prevent most expensive naming conflicts.
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