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Is Another Business Using a Name or Logo Similar to Yours? Here’s What You Can Do to Stop It
Why Similar Business Names and Logos Can Be a Legal Problem
In today’s competitive marketplace, your business name and logo are more than just branding tools; they are essential assets that represent your reputation, goodwill, and the trust you’ve built with your clients. When another business begins using a name, logo, or visual identity that is confusingly similar to yours, it can create serious problems. Confusion in the marketplace can lead customers to mistakenly believe there is an affiliation between your businesses, divert potential clients, dilute your brand, and even cause reputational harm. In Canadian law, the test isn’t whether the names or logos are identical; it’s whether the average consumer would be confused as to the source of the goods or services. This kind of confusion may amount to trademark infringement, passing off, or a violation of Ontario’s Business Names Act. If you’re in this situation, it’s important to understand your legal rights and the practical steps you can take to protect your business.
Understanding Trademark Rights: Registered vs. Common Law Protection
The highest level of brand protection in Canada comes from having a registered trademark under the Trademarks Act. A registered trademark grants the owner exclusive rights to use the mark across Canada in association with specific goods or services and makes enforcement more straightforward. However, not every business has a registered trademark, and fortunately, protection is still available through what is known as a common law trademark.
Common law trademark rights arise automatically through use of a name, logo, or brand in the marketplace. If you have built up goodwill and reputation in your business name, even without registration, you may be able to stop others from using a confusingly similar mark. The main limitation of common law rights is geographical: your protection only extends to the regions where your brand has acquired a distinct presence. For example, a business operating only in Toronto may not have enforceable rights against a similarly named company operating exclusively in British Columbia, unless there is evidence of market overlap or brand recognition across provinces. That said, courts recognize and protect common law trademark rights through legal actions such as passing off, allowing you to enforce your brand even without formal registration.
For an indepth article about unregistered trademarks, click here.
What If I Only Have a Registered Trade Name in Ontario and Someone Is Using It?
Many business owners assume that registering a trade name under Ontario’s Business Names Act gives them exclusive rights to that name. While registration is required to operate under a name other than your personal or corporate legal name, it does not in itself create trademark rights or prevent others from using a similar name. In other words, registration of a business name does not guarantee exclusivity. However, if your business name has been in use long enough to develop brand recognition and goodwill, you may still have legal grounds to challenge another business using a confusingly similar name.
In Ontario, your recourse would typically involve a passing off claim under common law or, in more serious cases, legal proceedings to seek an injunction or damages. Registration under the Business Names Act can be helpful as supporting evidence that your name has been in use and was formally disclosed, but it is not a substitute for trademark protection.
What You Should Do If Another Business Is Using a Similar Name or Logo
If you discover that another business is using a name or logo that is similar to yours, and it is causing confusion or undermining your brand, it is important to act quickly and strategically. If your name, logo, or branding plays a key role in your business identity, particularly if it appears on your website, signage, products, or client materials, you should retain legal counsel with experience in trademark and tradename infringement matters as soon as possible. The longer the infringing party continues to operate, the more difficult it may become to stop them, especially if they begin to build their own presence or goodwill in the market.
The first step your lawyer will usually take is to prepare and send a cease and desist letter. This formal letter outlines your rights, explains how the other party’s actions are infringing upon those rights, and demands that they immediately stop using the name or logo in question. It may also request that they abandon any associated domain names, withdraw business name registrations, or provide written undertakings not to continue the infringing activity. In many cases, the infringing party is not aware of the legal implications and will retain their own lawyer to respond.
At this stage, negotiations often begin. This can involve working out a reasonable timeline for the infringing business to rebrand, change its materials, or discontinue use of the offending elements. If handled effectively, this process can resolve the matter efficiently, without the need for litigation. Taking prompt legal action shows that you are serious about protecting your rights and helps avoid weakening your position over time. Most importantly, early intervention significantly reduces the risk of having to pursue a costly and public court proceeding to protect your brand.
What if the Infringing Business Is in Another Province or Online?
In today’s digital economy, infringement is not always limited to your local area. You may encounter a business in another province or even in a different country using a name or logo that is confusingly similar to yours. Whether you can take legal action depends on several important factors. If you own a registered trademark under the Trademarks Act, your rights apply throughout Canada, regardless of where the other business is located. This provides a strong legal foundation to demand that the infringing party stop using the mark, even if they operate in a different province.
If you do not have a registered trademark, your ability to enforce your brand depends on the extent of your market presence and goodwill. For example, if your business is well known outside Ontario through national advertising, online sales, or a strong digital presence, you may still be able to assert your rights in other provinces. However, if your reputation is limited to a specific local region, it may be more difficult to take legal action outside that area. That said, online infringement through websites, social media, or e-commerce platforms can often be addressed through legal tools such as demand letters, domain name disputes, and platform-based takedown procedures, especially when supported by trademark or passing off claims.
What If I Receive a Cease-and-Desist Letter?
Receiving a cease-and-desist letter can be stressful and confusing, particularly if you believe your business is acting in good faith. While the letter itself is not a court order, it is a formal warning that someone believes your name, logo, or branding may be infringing their legal rights. It is important to take it seriously and avoid responding without legal advice. The first step should be to consult a business lawyer who has experience in trademark or tradename disputes.
Your lawyer can help you understand the scope of the claim, assess whether the other party actually has valid legal rights, and determine if your business is at risk. You may have strong grounds to defend your use of the name or logo, such as prior use, distinct industry focus, or a lack of public confusion. In some cases, it may be in your best interest to resolve the issue by negotiating changes to your branding or entering into a formal agreement that allows both parties to operate without conflict. Early legal advice can clarify your position and prevent unnecessary legal costs or reputational harm.
How We Can Help
Protecting your business name, logo, and brand identity is essential to maintaining your reputation, avoiding confusion in the marketplace, and securing your long-term growth. Whether you are dealing with an active infringement, responding to a cease-and-desist letter, or looking to proactively safeguard your brand, Jahanshahi Law Firm can provide the legal guidance you need. We assist clients with trademark enforcement, passing off claims, cease and desist strategies, and brand protection planning. Our goal is to resolve disputes efficiently and strategically, with a focus on preserving the value of your brand while avoiding unnecessary litigation. If you believe someone is using a name or logo that is too close to yours, contact us to learn how we can help protect what you’ve built.
ABOUT THE AUTHOR:
Shahriar Jahanshahi is a corporate lawyer and founder of Jahanshahi Law Firm, advising startups, growth-stage companies, and investors on complex legal, tax, and strategic matters. His practice focuses on corporate structuring, tax planning, private M&A, franchising, and real estate, with a client base that includes high-net-worth individuals, private lenders, and entrepreneurs. For further information about Shahriar Jahanshahi, click here.