A founder's primer on trademarks, copyright and trade secrets

Trademarks protect your name, copyright protects your creative work and trade secrets protect what you keep private. Most companies need all three.

A woman in a camel sweater typing at a white desk with a desktop monitor

Three tools, three jobs

Founders often use the words interchangeably, but each form of protection answers a different question. Who can use your name? Who can copy your work? Who can learn your methods? Mixing them up leads to gaps that are expensive to close later.

ProtectionWhat it coversHow it starts
TrademarkNames, logos, slogansUse in commerce, stronger with federal registration
CopyrightCode, writing, designs, photosAutomatic on creation, registration helps enforcement
Trade secretRecipes, processes, customer dataReasonable steps to keep it confidential

A simple order of operations

  1. Run a clearance search on your company and product names.
  2. File federal trademark applications for the names you will build on.
  3. Collect signed IP assignments from founders, employees and contractors.
  4. Label confidential material and limit who can access it.
Glass and brick office towers under an overcast sky
Ownership questions are easiest to settle before the company grows.
"If a contractor built it and nobody signed an assignment, you may not own it."

The contractor gap

The most common problem we see is simple: a freelancer designed the logo or wrote the first version of the software, and no written assignment exists. It is usually fixable, and much easier to fix before an investor or buyer asks.

Common questions

Yes. Forming an entity registers a business name with the state, but it does not give you trademark rights across the country.

Ideas alone are hard to protect. The expression of an idea, a brand name or a confidential process can be protected.

Federal applications commonly take a year or more from filing to registration, which is why early filing matters.

Julian Pruitt

Julian Pruitt

Business Lawyer

Julian advises owners across the Charlotte region on contracts, formations and deals. This article is general information, not legal advice for your situation.

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