Under the common law of trademarks, you have a duty to investigate a proposed trademark before you adopt it. Because you found a possible competitor using a name for its business that sounds like your name, proceed with your chosen name with caution.
A mark that is so similar in sight, sound or mental impression to an existing mark infringes on an existing trademark if both businesses using the mark sell identical or similar goods or services. So if you sell widgets online under the name "BobsWidgets.com" after discovering a brick and mortar store named "Rob's Widjits" selling widgets at retail, expect Rob's Widjits to sue you for trademark infringement.
I recommend that you contact an attorney that specializes in trademark law and ask about your mark specifically. There is no exact science to making determinations of whether one mark is too close to another, so ask your lawyer to perform a "knock-out" search to see what other marks may be out there that you don't know about. And be sure to tell him or her about the business you found, how they spell their name and what goods or services they sell.
Answered on Aug 23rd, 2011 at 6:58 PM