Federal vs State Trademark: What’s the Difference?

Federal Trademark vs State Trademark:

What's the Difference?

A trademark is a word, phrase, symbol, or design, or a combination thereof, that identifies and distinguishes the source of the goods of one company from those goods from other companies. A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product.

Trademarks can be registered at the federal or state level. A federal trademark registration is issued by the United States Patent and Trademark Office (USPTO), while a state trademark registration is issued by the trademark office of the state in which you apply.

Key Differences Between Federal and State Trademarks

Scope of protection: A federal trademark registration provides nationwide protection for your trademark, while a state trademark registration only provides protection within the state in which it is registered.

Presumption of ownership: A federal trademark registration creates a presumption that you own the trademark and have the exclusive right to use it throughout the United States for the goods or services identified in your registration. This presumption can be very helpful in enforcing your trademark rights. A state trademark registration does not create a presumption of ownership.

Use in commerce: To register a trademark federally, you must be using the mark in commerce, which means that you must be actually using the mark to identify and distinguish your goods or services in the marketplace. There is no requirement of use in commerce to register a trademark at the state level.

Registration process: The federal trademark registration process is more complex and time-consuming (learn how a trademark attorney can help here) than the state trademark registration process. However, the federal registration process is also more thorough and provides greater protection for your trademark.

Cost: The cost of registering a trademark federally is higher than the cost of registering a trademark at the state level. Our federal trademark pricing ranges from $2,000 to $2,800 (prices as of October 2023). You can be sure that the investment you make to secure a federal trademark will save you thousands or hundreds of thousands down the road.

Which type of trademark registration is right for you?

Federal trademark registration will provide you with the broadest protection for your trademark and will make it easier to enforce your trademark rights. If you only do business in one state and have no plans to expand your business beyond that state, then state trademark registration may be a good option for you. However, it is important to keep in mind that state trademark registration will only protect your trademark within the state in which it is registered.

Benefits of Federal Trademark Registration

There are several benefits to registering your trademark federally, including:

Nationwide protection: A federal trademark registration provides nationwide protection for your trademark. This means that you can prevent others from using your trademark anywhere in the United States, even if they are not registered in the state in which you are doing business.

Presumption of ownership: A federal trademark registration creates a presumption that you own the trademark and have the exclusive right to use it throughout the United States for the goods or services identified in your registration. This presumption can be very helpful in enforcing your trademark rights through cease and desist letters (we’d love to help you send your demand letter here) and in the event that litigation ensues.

Constructive notice: A federal trademark registration is published in the USPTO's official database, which gives constructive notice of your trademark rights to the public. This means that third parties are presumed to have knowledge of your trademark rights if they use your trademark without your permission.

Use of the ® symbol: Once your trademark is registered federally, you can use the ® symbol next to your trademark to indicate that it is registered. This can deter others from using your trademark without your permission. The commonly seen “TM” logo indicates that you are pursuing a trademark but have yet to receive registration. It’s important for the purpose of putting the public on notice (see the prior paragraph).

Filing a trademark infringement lawsuit in federal court: If your trademark is registered federally, you can file a trademark infringement lawsuit in federal court. This can be advantageous because federal courts have more experience and expertise in trademark cases. Federal lawsuits can be incredibly pricey and time consuming, which is why it is important to have the strongest argument and the USPTO presumption should litigation arise.

How to Register a Federal Trademark

To register a federal trademark, you must file an application with the USPTO. The application process is complex and time-consuming, so it is important to consult with an experienced trademark attorney before filing.

The USPTO will examine your trademark application to determine whether it is eligible for registration. If the USPTO finds that your trademark is eligible for registration, it will publish your trademark application. Third parties have 30 days from the date of publication to file an opposition to your trademark registration. If no opposition is filed, your trademark will be registered.