When a competitor starts using your business name or something close to it, you have more options than a lawsuit. You can call the other owner, make a creative ask, negotiate a coexistence or phase-out deal, send a cease-and-desist letter, ask the U.S. Patent and Trademark Office (“USPTO”) to refuse their registration, or sue. I suggest the same first step whichever path you take: save the evidence and confirm your own rights before you contact anyone, because what you can prove sets the strength of every later option.
Trademark infringement is mainly a matter of federal law. The federal trademark statute, the Lanham Act, supplies the main claims and remedies. Minnesota adds a claim for marks registered with the Minnesota Secretary of State under Minn. Stat. § 333.28 and its Deceptive Trade Practices Act, Minn. Stat. § 325D.44, which reaches passing off and confusion whether or not a mark is registered. This page is part of my Minnesota trademark practice and is written for the owner whose name is being used.
What Should You Do First When a Competitor Uses Your Business Name?
I suggest saving proof of the use and of any customer mix-ups, then confirming your own rights and theirs before you contact anyone, because those facts decide which options are open to you. A filing with the Minnesota Secretary of State does not settle who may use a name. Minnesota’s LLC name statute says its rules “do not abrogate or limit the law of unfair competition or unfair practices,” the state trademark act, or federal trademark law (Minn. Stat. § 322C.0108, subd. 3), and the corporate name statute says the same (Minn. Stat. § 302A.115, subd. 4).
I suggest these steps, because each one preserves evidence without committing you to a course:
- Capture the use. Take dated screenshots of the other business’s website, social media, listings, signs, and ads, and keep anything it prints.
- Keep every confused customer. Save misdirected calls, emails, reviews, and orders, with dates. Actual confusion is one of the six factors courts weigh, explained under how courts decide whether customers are likely to be confused.
- Pin down your first use. Find the earliest dated invoice, sign, ad, or web page showing your name, gather any federal or Minnesota registration, and keep evidence that customers tie the name to your business (advertising, press, customer statements).
- Check their filings. Search the USPTO trademark database for any application the other business filed, and the Secretary of State’s business records for its entity name.
- Hold your public comments. A false accusation to customers or online can create a claim against you, as explained under protecting your customers.
Who has rights when two businesses share a name depends on use, timing, and place, and that page covers the priority rules.
How Do Your Options Compare, From a Phone Call to a Lawsuit?
Your options run roughly from least to most expensive: a call to the other owner, a creative ask, a negotiated deal, a cease-and-desist letter, a USPTO filing, and a lawsuit. Each fits a different situation and carries its own risk.
- A call to the other owner. It fits when the overlap looks accidental. It costs your time. The risk is an informal answer with no written follow-up, and talks that drift.
- A creative ask. It fits a modest request, such as a limited run or a phase-out date. It costs little. The risk is that it is still a demand, and the recipient may publicize it.
- A coexistence, license, or phase-out deal. It fits when both businesses can operate with clear lines between them. It costs the drafting of an agreement. The risk is a loosely written license that weakens your mark.
- A cease-and-desist letter. It fits when a call has failed or the confusion is plain. It costs a lawyer’s fee for the letter. The risk is that the other business files first.
- A USPTO filing. It fits when the competitor has applied to register a similar mark. It costs government fees and a lawyer’s time. The risk is that it decides registration, not use.
- A lawsuit. It fits when the use is costing you customers and nothing else has worked. It costs the most of these options. The risk is the other side’s defenses and the expense of proof.
A Direct Call to the Other Owner
A call between owners fits when the overlap looks accidental, and it costs nothing but time. One business owner who wrote to me had checked only the Secretary of State’s name search before choosing a name, and learned of the other business only after posting online. An owner in that position may agree to change course once the conflict is explained.
I suggest deciding before the call what you want (a new name, a different market, a date to stop), sticking to facts, and confirming any agreement in a short email the same day. A written follow-up matters because an open-ended conversation adds time, and an inexcusable delay that prejudices the other business can bar your claim later, as explained under the other business’s defenses.
A Creative Ask: Bud Light’s Town Crier
A creative ask delivers the same request in a tone the other business can accept. On a Friday in December 2017, Bud Light sent a man dressed as a town crier to a Minneapolis brewery that had named its latest IPA “Dilly Dilly,” a phrase from Bud Light’s ads, as Global News reported. The scroll asked the brewery to keep the beer to a limited, one-time run, warned that disobedience would bring more scrolls and then a formal warning, and offered two tickets to the Super Bowl in Minneapolis. The brewery’s co-founder told Global News that Bud Light could have come down hard, and that he appreciated the tone.
The scroll was still a demand with an escalation path, and a creative ask fits best when what you ask for is modest enough to grant.
A Coexistence, License, or Phase-Out Deal
A written deal fits when both businesses can keep operating with clear lines between them. A coexistence agreement sets those lines (different markets, regions, or visual styles), a license lets the other business use your mark on your terms, and a phase-out gives it a date to stop. The terms of a trademark settlement agreement are where these lines get fixed.
For a registered or pending mark, federal law credits use by “related companies” to the owner: such use “shall inure to the benefit of the registrant or applicant for registration” (15 U.S.C. § 1055). A related company is one “whose use of a mark is controlled by the owner of the mark with respect to the nature and quality of the goods or services” (15 U.S.C. § 1127). So a trademark license should give you control over quality, because that control is what the statute ties the benefit to.
A phase-out date can make agreement easier for the other side. For a business owner on the receiving end of a demand, I once outlined a response built around a wind-down date: the name would stay in use through events already booked, then come off.
When Does a Cease-and-Desist Letter Make Sense?
A cease-and-desist letter makes sense when a direct conversation has failed or the confusion is plain enough that you want a written record. It states your rights, the conflicting use, and your request, and it creates proof that the other business knew of your claim.
That proof matters for a federally registered mark displayed without any of the notices § 1111 describes: the words “Registered in U.S. Patent and Trademark Office” or “Reg. U.S. Pat. & Tm. Off.” or “the letter R enclosed within a circle, thus ®.” In a suit by such a registrant, “no profits and no damages shall be recovered under the provisions of this chapter unless the defendant had actual notice of the registration” (15 U.S.C. § 1111). A letter that identifies your registration is written evidence of that notice.
A letter also carries two risks:
- The other business may file first. In “a case of actual controversy within its jurisdiction,” a federal court “may declare the rights and other legal relations of any interested party seeking such declaration” (28 U.S.C. § 2201), so the business you accuse can ask a court to declare that it does not infringe.
- A suit you know is groundless can cost you fees. Under Minnesota’s Deceptive Trade Practices Act, a court may award attorneys’ fees if “the party complaining of a deceptive trade practice has brought an action knowing it to be groundless” (Minn. Stat. § 325D.45, subd. 2). The federal statute provides that “The court in exceptional cases may award reasonable attorney fees to the prevailing party,” whichever side that is (15 U.S.C. § 1117(a)).
The recipient reads the letter closely. In one letter I reviewed for a business owner who had received it, the last page carried a signature block for the recipient to mark the demands agreed to and understood. Signing it as written would have accepted every demand, including stopping use of the name immediately. The same letter rested on pending federal applications rather than issued registrations. I suggest stating your registrations and first-use dates exactly as your records show them, because the other business will keep the letter and can use any overstatement against you. The format and tone of cease-and-desist letters for Minnesota trademark owners have their own page.
How Can the USPTO Stop a Competitor’s Registration?
If the competitor has applied to register a similar mark, the USPTO offers three tools: a letter of protest before the application is published or shortly after, an opposition after it is published, and a petition to cancel after it registers. Each decides whether the other business gets or keeps a federal registration. An order to stop using the name comes from a court.
Letter of protest. Federal law provides that “A third party may submit for consideration for inclusion in the record of an application evidence relevant to a ground for refusal of registration” (15 U.S.C. § 1051(f)). The evidence index must be one “that does not identify the protestor or its representatives” (37 C.F.R. § 2.149(f)(3)). For a compliant submission, “only the specified ground(s) for refusal and the provided evidence relevant to the ground(s) for refusal will be included in the application record” (37 C.F.R. § 2.149(h)), and “Communications with the third party will not be made of record in the application” (37 C.F.R. § 2.149(j)). A protest must be filed “no later than 30 days after the date the application is published for opposition” (37 C.F.R. § 2.149(c)); check the current text of the rule before relying on that period. “If the letter of protest is filed on or within 30 days after the date of publication of the subject application, the evidence must establish a prima facie case for refusal on the identified ground(s)” (37 C.F.R. § 2.149(d)(2)), and “If the subject application cannot be withdrawn from issuance of a registration while consideration of the protest is pending, the protest may be considered untimely” (37 C.F.R. § 2.149(c)). A protest “does not stay or extend the time for filing a notice of opposition” (37 C.F.R. § 2.149(e)), so the opposition period runs alongside it.
Opposition. Under 15 U.S.C. § 1063(a), “Any person who believes that he would be damaged by the registration of a mark upon the principal register” may oppose it “within thirty days after the publication under subsection (a) of section 1062 of this title of the mark sought to be registered,” and the statute allows extensions on a timely written request. Check the current text of § 1063 and the USPTO’s rules before relying on that period. How an opposition proceeding runs has its own page.
Cancellation. After registration, 15 U.S.C. § 1064 allows a petition to cancel. The general period it sets is “Within five years from the date of the registration of the mark under this chapter,” and some grounds may be raised “At any time if the registered mark becomes the generic name for the goods or services, or a portion thereof, for which it is registered, or is functional, or has been abandoned.” Check the current text of § 1064 before relying on either period.
What Do You Have to Prove in a Trademark Infringement Claim?
You must prove that you own a valid mark and that the other business’s use is likely to cause confusion. The statutes below do not require proof that the other business meant to copy you or that a customer was actually fooled, though courts weigh both.
The claim depends on what you have:
- A federally registered mark. The Lanham Act reaches anyone who, without consent, makes “use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive” (15 U.S.C. § 1114(1)(a)).
- An unregistered mark. Section 43(a) of the Lanham Act covers a use that “is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person” (15 U.S.C. § 1125(a)(1)(A)).
- A Minnesota-registered mark. Minnesota’s statute covers a mark “identical to or so similar to the registered mark as to be likely to cause confusion or mistake on the part of a purchaser of the goods or services or to deceive such a purchaser as to the source or origin of the goods or services” (Minn. Stat. § 333.28).
- Any mark, under Minnesota’s Deceptive Trade Practices Act. A business engages in a deceptive trade practice when it “passes off goods or services as those of another” or “causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services” (Minn. Stat. § 325D.44, subd. 1).
A registration on the principal register helps you carry the first element. For a mark “registered on the principal register,” the registration is “prima facie evidence of the validity of the registered mark . . . of the registrant’s ownership of the mark, and of the registrant’s exclusive right to use the registered mark in commerce on or in connection with the goods or services specified in the registration subject to any conditions or limitations stated therein, but shall not preclude another person from proving any legal or equitable defense or defect” (15 U.S.C. § 1115(a)), and “Registration of a mark on the principal register” also “shall be constructive notice of the registrant’s claim of ownership thereof” (15 U.S.C. § 1072). An owner without a principal-register registration has no such presumption under § 1115(a) and proves ownership with its own evidence. Whether a name can be a valid mark depends on its type: the Eighth Circuit wrote that a generic name “is precluded from trademark protection under any circumstances,” and that a descriptive mark “can be protected only if shown to have become distinctive through acquiring secondary meaning” (General Mills, Inc. v. Kellogg Co., 824 F.2d 622 (8th Cir. 1987)). Whether a federal or Minnesota registration fits your business has its own page.
How Do Courts Decide Whether Customers Are Likely to Be Confused?
The Eighth Circuit, which hears appeals from Minnesota’s federal court, weighs six factors, and no one factor decides the case. In Luigino’s, Inc. v. Stouffer Corp., 170 F.3d 827 (8th Cir. 1999), restating its earlier decisions, the court wrote that “we must consider six factors, none of which alone is dispositive”:
- the strength of the owner’s mark;
- the similarity of the two marks;
- the degree of competition between the products;
- the alleged infringer’s intent to pass off its goods as the owner’s;
- incidents of actual confusion; and
- the type of product, its cost, and conditions of purchase.
In Luigino’s, Stouffer claimed that “Michelina’s Lean ‘N Tasty” frozen entrees infringed its “Lean Cuisine” mark. Lean Cuisine was a strong mark and the products competed directly, and the court still affirmed judgment for Luigino’s. It held that “common use of the descriptive word ’lean’ does not make the marks similar,” and that a reference to Lean Cuisine in describing the new product “evidences only an intent to compete with Lean Cuisine, and not an intent to infringe Stouffer’s trademark.”
The same reasoning decided a Minnesota cereal case. Kellogg sought a preliminary injunction against General Mills’ “Oatmeal Raisin Crisp” as infringing its “Apple Raisin Crisp” mark, and the case was decided in the District of Minnesota. The Eighth Circuit affirmed the denial, holding that the trial court, “properly focusing on the total effect conveyed by both marks,” did not clearly err in finding the marks not confusingly similar (General Mills, Inc. v. Kellogg Co., 824 F.2d 622 (8th Cir. 1987)). On the conditions of purchase, the district court found that both companies “have appended their house marks in a sufficiently prominent manner so that consumers would likely distinguish between the two products’ sources,” and the Eighth Circuit held that its finding on purchasing conditions “was not clearly erroneous.”
The Minnesota Supreme Court applied the state statute the same way in Minneapple Co. v. Normandin, 338 N.W.2d 18 (Minn. 1983). A partnership had registered a design reading “THE MINNEAPPLE”; a button seller marketed a design reading “Minne,” then an apple with a happy face, then “lis,” with a copyright line. The court reversed a judgment for the registrant, found that “The two designs at issue here differ substantially,” and said of the copyright line: “That effort is important to preventing customer confusion.” In Luigino’s and General Mills, the prominent house marks on the packages also weighed against confusion, and in Minneapple, the seller’s copyright line did.
What Defenses Will the Other Business Raise?
The other business may argue that it is only describing its product, that you waited too long, that an earlier local use protects it, or that your mark is too weak to protect. Each defense turns on facts you can start gathering now.
- Descriptive fair use. Among the defenses the Lanham Act lists even against an incontestable registration is “a use, otherwise than as a mark, of the party’s individual name in his own business, or of the individual name of anyone in privity with such party, or of a term or device which is descriptive of and used fairly and in good faith only to describe the goods or services of such party, or their geographic origin” (15 U.S.C. § 1115(b)(4)). The words “otherwise than as a mark” are the limit: the competitor must be describing its product, not branding it.
- Laches. The Eighth Circuit describes laches, quoting earlier decisions, as a bar when the “claimant inexcusably delays in asserting its claim and thereby unduly prejudices the party against whom the claim is ultimately asserted.” “In deciding whether there was inexcusable delay, one factor we consider is the doctrine of progressive encroachment,” and under that doctrine, as the court quoted from its earlier decision in Roederer, the delay is measured “not from when the [claimant] first learned of the potentially infringing mark, but from when such infringement became actionable and provable” (A.I.G. Agency, Inc. v. American International Group, Inc., 33 F.4th 1031 (8th Cir. 2022)). In that case the court reversed a summary judgment holding the plaintiff’s claims barred by laches and sent the case back. The laches defense has its own page.
- An earlier local user. If you rely on a Minnesota registration, a business with good-faith common-law rights keeps them against you, but “limited to the areas of the person’s use established prior to the registration date and areas in which the person’s mark has become known prior to the registration date” (Minn. Stat. § 333.30).
- Attacks on your mark. The other business may argue your name is too descriptive to protect, or that it has become generic or been abandoned. Against a mark on the principal register, the generic and abandonment grounds are among those § 1064 allows “At any time.” Other equitable defenses, such as acquiescence and unclean hands, have their own page.
What Can a Court Order, and How Fast?
A court can order the other business to stop, and it can award money. The order to stop is the main remedy, and it can come early in the case through a temporary restraining order or preliminary injunction.
Injunctions. Federal courts may grant injunctions “according to the principles of equity and upon such terms as the court may deem reasonable” to stop infringement of a registered mark “or to prevent a violation under subsection (a), (c), or (d) of section 1125 of this title” (15 U.S.C. § 1116(a)), which reaches unregistered marks under § 1125(a). The same subsection gives the owner a head start: “A plaintiff seeking any such injunction shall be entitled to a rebuttable presumption of irreparable harm upon a finding of a violation identified in this subsection in the case of a motion for a permanent injunction or upon a finding of likelihood of success on the merits for a violation identified in this subsection in the case of a motion for a preliminary injunction or temporary restraining order.” That presumption goes to irreparable harm, one of four showings in the Eighth Circuit: “The moving party must demonstrate: (1) that it is threatened with irreparable harm; (2) that this harm outweighs any injury which granting the injunction will inflict on other parties; (3) that the movant will probably succeed on the merits; and (4) that the public interest favors an injunction” (General Mills). A federal court “may issue a preliminary injunction or a temporary restraining order only if the movant gives security in an amount that the court considers proper to pay the costs and damages sustained by any party found to have been wrongfully enjoined or restrained” (Fed. R. Civ. P. 65(c)), and in state court “No temporary restraining order or temporary injunction shall be granted except upon the giving of security by the applicant” (Minn. R. Civ. P. 65.03(a)). Minnesota’s Deceptive Trade Practices Act allows an injunction for “A person likely to be damaged by a deceptive trade practice of another,” and “Proof of monetary damage, loss of profits, or intent to deceive is not required” (Minn. Stat. § 325D.45, subd. 1). The owner of a Minnesota-registered mark “may bring an action to enjoin the manufacture, use, display, or sale of any counterfeits or imitations of the mark” (Minn. Stat. § 333.29, subd. 1).
Money. A prevailing owner may recover, “subject to the provisions of sections 1111 and 1114 of this title, and subject to the principles of equity,” “(1) defendant’s profits, (2) any damages sustained by the plaintiff, and (3) the costs of the action” (15 U.S.C. § 1117(a)). On profits, “the plaintiff shall be required to prove defendant’s sales only; defendant must prove all elements of cost or deduction claimed,” and “The court in exceptional cases may award reasonable attorney fees to the prevailing party.” Profits are not automatic: the Eighth Circuit, quoting its earlier decision, wrote that “an accounting will be denied in a trademark infringement action where an injunction will satisfy the equities of the case” (Safeway Transit LLC v. Discount Party Bus, Inc., 954 F.3d 1171 (8th Cir. 2020)). The Supreme Court calls a trademark defendant’s mental state “a highly important consideration in determining whether an award of profits is appropriate” (Romag Fasteners, Inc. v. Fossil, Inc., 140 S. Ct. 1492 (2020)). For a Minnesota-registered mark, “The court, in its discretion, may enter judgment for an amount not to exceed three times the profits and damages and reasonable attorneys’ fees of the prevailing party if the court finds the other party committed the wrongful acts with knowledge or in bad faith or otherwise as according to the circumstances of the case” (§ 333.29, subd. 1).
Where Is a Minnesota Trademark Case Filed?
A Lanham Act claim can be filed in federal court, including the U.S. District Court for the District of Minnesota. Federal courts have original jurisdiction over these cases “without regard to the amount in controversy or to diversity or lack of diversity of the citizenship of the parties” (15 U.S.C. § 1121(a)), so a dispute between two Minnesota businesses over a small market can be heard there. Minnesota’s own claims under § 333.28 and § 325D.44 sit beside the federal ones, and the option of bringing Lanham Act claims in state court has its own page. The right court depends on where the other business operates, which claims you have, and how fast you need an order.
How Do You Protect Your Customers and Business While It Plays Out?
I suggest serving customers as usual, correcting confusion with facts, and logging every mix-up, because the log becomes evidence of actual confusion. When a customer reaches the wrong business or asks whether you are related, a short factual answer protects you: you are not affiliated, and here is how to reach you.
I suggest keeping those answers factual and free of accusations, because Minnesota’s Deceptive Trade Practices Act lists as a deceptive practice a business that “disparages the goods, services, or business of another by false or misleading representation of fact” (Minn. Stat. § 325D.44, subd. 1). A dispute you could win on confusion can become a counterclaim if your own statements overreach.
Other professionals can help with the business side:
- An accountant can measure your lost sales and estimate the other business’s revenue, which matters if you seek money, because the federal statute makes you prove only its sales and makes it prove its costs.
- A branding or marketing firm can help if you decide that a modest change of your own, such as a tagline or a visual refresh, costs less than a fight.
- Your web or social media manager can keep dated copies of the other business’s pages and ads as they change.
You can build the evidence file, run the USPTO search, and make the first call yourself. None of those steps requires a lawyer, and each one strengthens whatever option you choose next.
Can I stop a competitor whose LLC name the Minnesota Secretary of State accepted?
You may be able to. The Secretary of State’s acceptance of a business name does not decide trademark rights. Minnesota’s LLC name statute, Minn. Stat. § 322C.0108, subd. 3, says the name rules do not abrogate or limit the law of unfair competition or federal trademark law, and the corporate name statute, Minn. Stat. § 302A.115, subd. 4, says the same. Whether you can stop the use turns on who has rights in the name and whether customers are likely to be confused.
Do I need a federal registration before I can object?
You do not need one. Federal law reaches a use likely to cause confusion about affiliation, origin, sponsorship, or approval under 15 U.S.C. § 1125(a), and Minnesota’s Deceptive Trade Practices Act, Minn. Stat. § 325D.44, reaches passing off and confusion without any registration. A name that merely describes your goods or services can be protected only if it has become distinctive through acquiring secondary meaning. A principal-register registration is prima facie evidence of your ownership and exclusive right to use the mark for the goods or services it lists, though the other business may still prove any defense.
Is it too late if I waited a couple of years to object?
Waiting does not by itself end your claim. The Eighth Circuit describes laches as a bar when a claimant inexcusably delays and thereby unduly prejudices the other side. One factor it weighs is progressive encroachment, under which the delay runs from when the infringement became actionable and provable, not from when you first noticed the name. A claim becomes actionable and provable when the other business’s use “becomes likely to confuse customers as to the source or sponsorship of the goods or services.”
Can the competitor sue me first after I send a letter?
It can try. Under 28 U.S.C. § 2201(a), in a case of actual controversy within its jurisdiction, a federal court may declare the rights of any interested party seeking a declaration. A business that receives a demand may therefore ask a court to declare that it does not infringe. I suggest sending a letter only when you are prepared to support your position in court, because the letter may be what starts the case.
Can I recover the competitor's profits without proving my own lost sales?
Yes, subject to the principles of equity. Under 15 U.S.C. § 1117(a), a prevailing owner may recover the defendant’s profits, its own damages, and costs, and in assessing profits the owner proves only the defendant’s sales while the defendant must prove its costs. A court may deny profits when an order to stop satisfies the equities, and the defendant’s mental state weighs heavily. For a federally registered mark displayed without the registration notice, 15 U.S.C. § 1111 provides that no profits and no damages shall be recovered under the Lanham Act unless the defendant had actual notice of the registration.
Does a Minnesota state trademark registration help against a competitor?
If you hold one, yes. Minn. Stat. § 333.28 and § 333.29 let a registrant sue a confusingly similar user. A court may award up to triple the profits and damages plus reasonable attorneys’ fees to the prevailing party on a finding of knowledge, bad faith, or the circumstances of the case. An earlier good-faith user keeps its earlier areas (Minn. Stat. § 333.30). A $50 application must be refused if the mark is merely descriptive and not yet distinctive, or confusingly similar to another’s existing name or mark (Minn. Stat. § 333.20, subd. 4; § 333.19, subd. 1).
Next Steps on a Competitor Using Your Name
Your strongest position comes from a complete evidence file and an accurate view of your own rights, and from there you can choose the least costly option that protects the name. The Minnesota trademark practice page describes the trademark work I handle. If a competitor is using your business name and you would like my analysis of your options, email [email protected] with a brief description, and I can start an intake and conflict check before you send any confidential documents.