In order to distinguish themselves from thousands of competitors and make them recognizable to consumers, enterprises use several methods. One of them is the creation of a commercial designation.
What is a commercial designation?
A commercial designation is a way to individualize an enterprise that has gained fame in a particular area with its services or products. This designation is not legislated, but briefly and accurately reflects its main features.
Additional features of a commercial designation include the following:
- Use it exclusively in commercial activities. A charitable foundation, for example, cannot acquire rights to a commercial designation.
- The subject of a commercial designation may only be enterprises having property used for commercial activities. This can be not only manufacturing enterprises, but also cafes, shops, pavilions, etc.
Sometimes, to simplify the explanation, they give an example of a commercial designation - a sign. Indeed, a sign is the most typical external expression of a commercial designation. It is located in commercial enterprises and makes them recognizable to potential consumers. But examples of a commercial designation cannot be limited to one sign.
Commercial designation options
The law does not apply any rules to the creation of a commercial designation. Therefore, it entirely depends on the discretion and interest of the enterprise.
1. The first example. Commercial designation consisting only of the original words:
- "Gifts of Poseidon."
- "World of travel".
- "Window of Europe."
- Spetsmash.
2. The second example. A commercial designation may include a place of business:
- Savelovsky market.
- Nizhny Novgorod sausages.
- Mini-hotel "Tver".
- Cafe "At the poplar."
3 . The third example. Commercial designation, including an indication of the type of activity:
- Seafood store "Gifts of Poseidon."
- Travel company "World of Travel".
- Production company "Window of Europe".
- Precision equipment factory "Spetsmash".
4. The fourth example. A commercial designation may refer to the identity of the owner:
- Atelier "At Larisa".
- Photo Studio A. Novikov.
- Law firm "Kozlov and partners".
As a result, the company has a lot of room to create its own commercial designation, which can clearly and vividly distinguish it from competitors.
Commercial designation or brand name?
In Russia, the right to the following types of individualization is recognized at the legislative level:
- commercial designation;
- commercial brand name;
- place of origin of goods;
- trademark.
A commercial designation is similar to a brand name in essence. What unites them is that they are used to individualize the enterprise as a whole, without affecting services or goods.
But the differences between them are much greater:
- a commercial designation is registered only on a voluntary basis, and the company name must be officially entered in the USRLE;
- the company name may not be transferred to other persons, and the commercial name may be transferred under a lease agreement, concession agreement or franchise;
- a commercial designation may belong to any type of commercial enterprise, and a company name only to legal entities.
Trademark or trademark?
Often the question arises - what is the difference between a trademark and a trademark. Both of these concepts originate from the English term trademark, consisting of two words:
- trade , translated into Russian as "commercial activity, trade";
- mark , meaning "label, mark, sign."
Thus, the literal translation trademark also means “trademark”, or “trademark”. These words are synonyms that mean the same thing, but the Civil Code uses only one thing - a trademark. In the international community, two marks are used to denote trademarks: the letter R enclosed in a circle, or TM. R means registered - "registered", and TM comes from the abbreviation TradeMark. The Civil Code of the Russian Federation legislatively considers only one of them - R or R in a circle.
Know how
Intellectual property that distinguishes an enterprise from its competitors can include any information (technical, economic, production) that has commercial value due to the fact that it is unknown to anyone else. These secrets allow the company to distinguish itself from its competitors and bring it real profit. Having lost these secrets, the company may lose important advantages. A classic example of a production secret is the exact classic Coca-Cola composition held at SunTrust Bank in Atlanta.
Intellectual Property Protection
Mandatory registration of commercial signs is not provided. But there is an opportunity to register it voluntarily. In Russia, for these purposes, the Federal Institute of Industrial Property maintains a register of various types of intellectual property.
By registering your company logo or the name of the place of origin of the goods in the open register, the commercial structure can easily prove its primacy in the event of a dispute over their affiliation. Another, no less important aspect of the importance of applying to the register of trademarks is the ability to check whether a trademark developed for a new company is similar to the designation of another, previously registered company, so that subsequently there are no problems with entering a new territory.
Trademark Right
The exclusive right extends to any object of intellectual property, including a commercial designation. It prohibits the use of it by persons unrelated to the company.
The content of this exclusive right consists of two inextricable aspects:
- Positive. Its owner can use the commercial designation in any way: on documents, in advertising, on signboards, etc.
- Negative. Its holder may prohibit the use of a commercial designation to any unauthorized person. If someone uses a commercial designation without the knowledge of its owner, it violates his rights. The owner of commercial law may demand compensation for losses and stop illegal use.
The territory to which the exclusive right extends is not unlimited and is limited to the place where this designation became known if this designation is not entered in the register of trademarks.