April 29, 2025

Trade Name vs Trademark What Is The Difference?

Trade Name vs Trademark What Is The Difference?Blog empty image

When you’re starting a business, it’s tempting to think that a trade name and a trademark are just the same thing. After all, they both have to do with names and branding. But under Philippine law, they’re actually very different—and if you don’t know the difference, you could run into problems later on.

Getting this right early can save you money, time, and stress. More importantly, it helps protect the brand you’re working hard to build.

What’s a Trade Name?

A trade name is simply the official name your business uses when you operate. This is the name you register with the DTI if you’re a sole proprietor, or with the SEC if you’re setting up a corporation or partnership.

Think of it as the name that appears on your receipts, permits, or contracts. For example, if you put up “Maria’s Variety Store” and register it with the DTI, that’s your trade name.

But here’s the catch: registering a trade name doesn’t give you ownership of the brand. Someone else could still register that same name—or a confusingly similar one—as a trademark with the IPOPHL and end up with stronger legal rights than you.

The Supreme Court even said so in Ecole de Cuisine Manille (Cordon Bleu) v. Ray Gapuz Review Center (2010): registering a business name with the SEC or DTI doesn’t automatically give you trademark protection.

👉 Bottom line: A trade name makes your business legal, but it doesn’t really protect your brand.

What’s a Trademark?

A trademark is where real brand protection starts. It’s anything that makes your product or service stand out in the market—your name, your logo, your slogan, even a unique packaging shape.

Familiar examples?

  • Jollibee’s smiling bee mascot 🐝
  • San Miguel’s red seal logo 🍺
  • Bench’s bold word mark

When you register your trademark with the Intellectual Property Office of the Philippines (IPOPHL), you get exclusive rights to use it for your goods or services. That means you can stop competitors from using the same or a confusingly similar mark.

The process goes like this:

  1. File your application with IPOPHL.
  2. Examination – IPOPHL checks if your mark meets the legal requirements.
  3. Publication in the IPO Gazette – this gives other parties a chance to oppose your application.
  4. Certificate of Registration – if no one successfully opposes and you pass all checks, IPOPHL grants you official protection.

One classic case is McDonald’s v. Big Mak (2004). The local chain “Big Mak” tried to ride on the popularity of McDonald’s “Big Mac.” McDonald’s won because their trademark was officially registered and protected under Philippine law.

👉 Bottom line: A trademark is your legal shield. It’s what actually protects your brand in the market.

What About Copyright?

Some parts of your brand may also be covered by copyright. For example:

  • A logo design is protected both as a trademark (for brand identity) and as a copyrighted artwork.
  • A jingle or slogan can also be copyrighted if it’s original.

The difference? Trademarks can last forever as long as you renew them every 10 years. Copyrights expire—generally the lifetime of the creator plus 50 years in the Philippines.

Key Takeaways for Entrepreneurs

  • Don’t stop with a trade name. Registering with the DTI or SEC makes you legal, but it doesn’t protect your brand.
  • Secure a trademark with IPOPHL. That’s what gives you the real protection.
  • Be careful with naming. If your trade name looks too similar to an existing trademark, IPOPHL may reject it.
  • Consider expert help. You can file on your own, but working with IP agents like Brealant, Hechanova, or Federis reduces the risk of costly mistakes.

The simple truth:
Your trade name is your legal identity.
Your trademark is your brand’s armor in the marketplace.
Without IPOPHL trademark protection, your business stays vulnerable to copycats.